Cyient DLM Shares Surge 12% on Stellar Q4 Profit Growth

Cyient DLM rose as much as 12% on the National Stock Exchange in the early trade on April 23, after the company posted a whooping 36.5% rise in consolidated net profit for the March quarter. Fall in input costs and rise in revenues for the quarter under review aided the company’s earnings for the March quarter.

Cyient DLM’s revenue of Rs 428 crore during the fourth quarter, up 18.3% on year, set the stage for the company to post an eye-popping earnings growth for the period. Additionally, a Rs 40.85 crore of deferred tax credit also boosted the company’s financials.

A 5% on year fall in input costs and higher revenues offset any possible impact of increased inventory related expenses, staff costs, and other expenses. The design-led manufacturing solutions provider posted an 11% rise in consolidated net profit for the year with a 27% rise in revenue for the said period.

For the year ended March, while the company had a cash outflow of Rs 62.39 crore from its operating activities, it had an inflow of Rs 47.12 crore on a consolidated basis.

On the operating profit front, the company reported an EBITDA of Rs 57.4 crore for the March quarter, up 51% on year, with an EBITDA margin of 13.4%, up 290 basis points from the year-ago quarter. The company’s defense segment showed a 43% on year slippage in revenue, primarily due to lower contributions from its top customer. However, its aerospace segment saw robust 53% on year growth during the March quarter.

 The acquisition of contributed significantly to the on-year growth in the industrial and med-tech segments, which rose by 84% and 296%, respectively.

At current levels, the stock is trading 90% higher than its IPO price of Rs 265 apiece on the NSE. However, it remains 43% below its all-time high of Rs 883.80.