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Cyient Announces First Quarter Results For FY 2018HYDERABAD, India, July 13, 2017 /PRNewswire/ -- KEY HIGHLIGHTS: Q1 FY 2018 Financial Highlights
Business Highlights
Message from the Management "Our strategy execution continues to gain momentum and we expect to start realizing significant revenue contribution from strategy execution this year. Recognizing our focus on strategy we were awarded the Times Network Award for Strategy from institute of competitiveness. This award serves as a strong and credible endorsement of our S3 strategy and acknowledges that our Design, Build and Maintain value proposition is not only shaping our industry positioning, but also redefining the basis of competition and helping us accelerate our growth. "Our outlook for FY18 is strong, backed by a strong pipeline and order backlog. We expect a double digit growth in our services business while DLM business is expected to grow by at least 20%. Our margins are expected to improve by 50bps driven by improvements in operational efficiency through the year. We expect to deliver a double digit earnings growth in the year." Mr. Ajay Aggarwal, Chief Financial Officer, said, "I am pleased to share that Cyient is progressing well on another year of well-rounded growth in revenue, profit and cash with 18.7% YoY growth in net profit and highest ever cash of Rs. 10,320 Mn. Operating profit as a focus area has penetrated to all levels in the organization. For the first time, Cyient crossed a cash of Rs. 10 billion and has had a healthy EBITDA/FCF conversion rate of ~43%. We will continue to focus on organic and inorganic strategic investments. For FY18, we expect the momentum to pick up and continue thereon in the coming quarters as well. Cyient will continue to focus on growth, improvement in operating margin, cash generation and thus maximizing the value for our shareholders." Business Update Communications The industry is witnessing increased demand for high-speed infrastructure as well as fiber deployment across Australia, New Zealand, and the U.S. The growth momentum continues into FY18, as we see growth opportunities from fiber roll-out programs, and small cell design and deployment in Australia and North America. We are also focused on building solutions around service assurance and analytics. Utilities & Geospatial Transportation We expect strong growth in FY18 owing to growth in our focus segments of rolling stock and signaling, our strong long term relationships, improved utilization and a healthy opportunity pipeline. Industrial, Energy and Natural Resources The demand continues to be soft through the year. To drive growth in this segment, we will focus on infrastructure management services and are developing new adjacent solutions with analytics, electronics, and design led manufacturing. We are seeing significant traction and growth with the focus on new services and solutions. Semiconductor, IoT and Analytics The industry is forecast to grow by 7.2% in 2017, a much larger growth compared to 1.5% in 2016. While we expect to see a degrowth in Q2 due to increased offshoring, our outlook for the year continues to remain strong. We expect a 14.6% YoY growth driven largely by growth across key accounts and operational efficiency improvements through the year. Medical & Healthcare We are also making strategic investments to support future growth. We signed an MOU to participate in the newly established Telangana Medical Devices Park in Hyderabad, India where we will operate alongside a number of other major global medical technology leaders. Design Led Manufacturing Operational Highlights CSR Activities
Infrastructure
Awards
Operations
Cyient (Estd: 1991, NSE: CYIENT) provides engineering, manufacturing, geospatial, network and operations management services to global industry leaders. Cyient leverages the power of digital technology and advanced analytics capabilities, along with domain knowledge and technical expertise, to solve complex business problems. As a Design, Build and Maintain partner, Cyient takes solution ownership across the value chain to help clients focus on their core, innovate, and stay ahead of the curve. Relationships form the core of how Cyient works. With nearly 14,000 employees in 21 countries, Cyient partners with clients to operate as part of their extended team, in ways that best suit their organization's culture and requirements. Cyient's industry focus includes aerospace and defense, medical, telecommunications, rail transportation, semiconductor, utilities, industrial, energy and natural resources. For more information, please visit www.cyient.com. Follow news about the company at @Cyient.
Disclaimer This document contains certain forward-looking statements on our future prospects. Although Cyient believes that expectations contained in these statements are reasonable, their nature involves a number of risks and uncertainties that may lead to different results. These forward-looking statements represent only the current expectations and beliefs, and the company provides no assurance that such expectations will prove correct. All the references to Cyient's financial results in this update pertain to the company's consolidated operations comprising wholly-owned subsidiaries Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient KK; Infotech Geospatial (India) Pvt. Ltd. (IGIPL): partly owned subsidiaries Cyient Insights Private Limited; Cyient DLM Private Limited; joint venture Infotech HAL Ltd (HAL JV) & associate company Infotech Aerospace Services Inc. (IASI). The income statement and cash flow provided is in the internal MIS format. MIS format is different from the income statement published as part of the financial results, which is as per the statutory requirement.
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