ICICI Securities: Cyient’s Q1 Reports Stronger Than Expected Revenue Performance; Recovery Imminent

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Cyient has reported a revenue decline of 11.6% QoQ in Q1 FY21 in constant currency terms (CC) with service revenue declining 14.3% QoQ. Though U.S. dollar revenue is expected to decline by 10-15% in CC terms in FY21, growth may recover Q2 FY21 onwards in all segments except aerospace. Ebit margin is lower by 328 basis points QoQ mainly due to lower business volume which was offset by lower Selling General and Administrative spend. Cyient's issues are more related to client spend rather than own execution and wallet share loss related exacerbated by structural weakness in aerospace space.Top five clients contribute 32.3% to revenue. The company is focused in de-risking its top-5 clients profile by gaining more wallet share in top 6-10 accounts. Free Cash Flow (FCF) conversion was also healthy at Rs 2,163 million in Q1 FY21 with an FCF/Ebitda conversion of 138.1%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Cyient’s Q1 Reports Stronger Than Expected Revenue Performance; Recovery Imminent

ICICI Securities: Cyient’s Q1 Reports Stronger Than Expected Revenue Performance; Recovery Imminent

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