Ø The global economic landscape in FY25 was shaped by a complex interplay of persistent macroeconomic challenges and moderate resilience.
Ø Within this macroeconomic context, Cyient’s DET segment encountered considerable in-year headwinds across several business units, which translated into a subdued revenue performance and consequently into an impact on in-year profitability.
Ø As the company looks forward to FY26E, Cyient DET maintains a cautious yet optimistic outlook. Further, Cyient’s FY26 priorities include: (i) deepening client engagement in key verticals through co-innovation, (ii) expanding investments in AI, software defined products, and cloud native engineering, (iii) strengthening global delivery and talent capabilities to support long-term scalability. During 4QFY25 earnings call, Cyient mentioned that DET revenue growth to remain soft even in 1HFY26E.
Ø Within ER&D space, Cyient expects Investment activity to remain strong in high-impact technology areas such as Digital Engineering, AI and Industry 4.0 frameworks targeted towards the convergence of operational technology and information technology domains.
o In FY25, Consol US$ revenues grew by 0.8%. Cyient DET’s US$ revenue registered a decline of 3.7% (down 3% yoy in CC terms) while DLM business grew by 24.7% (aided by inorganic growth as well). Within Cyient DET Transportation, Connectivity and Sustainability declined by 4.6%/6.8%/3.5% while new growth areas grew by 7.1% in CC terms. Among market, Cyient DET revenue (in US$ terms) grew by 8.3% in the Americas region while EMEA and APAC de-grew 14.8%/9.0% respectively.
o Consolidated EBIT margin declined by 249bps yoy in FY25 to 12.0% led by decrease in Services EBIT margin to 13.5% in FY25 vs. 16.1% in FY24) due to decline in revenue and increase in SG&A cost in DET segment.
o Consolidated Employee benefit expenses increased by 5.1% in FY24 largely due to wage hike, higher ESOP cost and staff welfare expenses. Services headcount decreased by 1310 to 15,151 and Services revenue per average headcount decreased yoy by 0.3% at US$ 46,454.
o Total debt decreased to Rs.2,138mn in FY25 vs. Rs.4,526mn in FY24.
o Cash and bank balances stood at Rs.13,142mn (vs. Rs.9,835mn in FY24) while current investments stood at Rs.3,172mn (comprising quoted bonds and mutual funds) vs. 2,843 investments at FY24-end.
o Cash generation for Cyient continues to remain healthy in FY25 with operating cash flow (OCF) of Rs.7,899mn (5-year CAGR of OCF being 6%). OCF to EBITDA conversion stood at 69% in FY25 (vs. 56% in FY24). Free cash flow (net of maintenance capex and acquisitions) for FY25 stood at Rs.4,016mn which translates into conversion of 65% of PAT (vs. 71% of PAT in FY24).
o Cyient paid Rs.26/share as dividend in FY25 (vs. Rs.30/Rs.26/share in FY24/FY23).
o During 4QFY25 (On 23rd Jan’25) Mr. Karthikeyan Natarajan (Executive Director and CEO) of Cyient Limited has resigned. Further on 19th Feb’25 Mr. Sukamal Banerjee has been appointed as Executive Director and CEO of its DET business.
