Cyient is an A /T+1 group IT Enabled Services company with having Face value of Rs 10.00. Cyient Limited formerly known as Infotech Enterprises Ltd is engaged in providing global technology services and solutions specializing in geospatial engineering design IT solutions and data analytics. It has headquarters and development facilities in India and the company serves a global customer base through its subsidiaries in the United States of America (USA) United Kingdom (UK) Germany Japan Australia Singapore and India. Cyient's range of services includes digitization of drawings and maps photogrammetry computer-aided design/engineering (CAD/CAE) design and modeling repair development engineering reverse engineering application software development software products development consulting analytics and implementation. Apart from these, it specializes in software services and solutions for manufacturing utilities telecommunications transportation & logistics local government, and financial services markets.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales were at Rs 1,618.20 crore in December 2022 up by 36.74%, Quarterly Net Profit at Rs. 156.00 crores in December 2022 up by 18.36%, and EBITDA stands at Rs. 310.80 crores in December 2022 up by 32.88% compared to December 2021.

List of recent updates regarding the company:

1. Cyient partnered with Honeywell to manufacture the aviation industry's first cloud-connected cockpit system – The Honeywell Anthem. The Honeywell Anthem flight deck will have unparalleled levels of connectivity, an exciting and intuitive interface modeled after everyday smart devices, and a highly scalable and customizable design. It will be driven by a versatile software platform that can be modified for virtually every type of aircraft, including passenger and cargo planes, business jets, helicopters, general aviation planes, and the fast-developing class of advanced air-mobility (AAM) vehicles.
2. It recently launched an AI-Powered Framework for Automated System and Software Testing (CyFAST), to accelerate end-to-end test automation. The platform enables end-to-end test automation across web, mobile, desktop, and embedded application and hardware devices, providing a comprehensive environment for managing testing projects.
3. It has also partnered with IIT Hyderabad (IITH) and WiSig Networks, a startup incubated at IITH, to enable volume production of India's first architected and designed 5G chip - the Koala NB-IoT SoC (Narrowband-IoT System-on-Chip).
4. The company is acquiring the Singapore-based firm Grit Consulting which will enable Cyient customers across sectors to draw value from Grit's deep knowledge and Cyient's technology solutions capabilities. Grit has deep-rooted expertise in consulting for asset-intensive industries like metal mining and energy.
5. Cyient has signed definitive agreements to acquire Citec, an international Plant and Product engineering services company serving customers across the energy, process, oil and gas, and manufacturing industries. This will be the largest outbound acquisition by an Indian engineering services company and Cyient’s largest acquisition to date.
6. Earlier this year company also announced the launch of a pre-built solution for managed Firmware over-the-Air (FOTA) updates from its CyientfIQTM innovation platform. The FOTA solution is designed to accelerate the development of intelligent and connected products for its customers across the industries such as Industrial, Construction, Agriculture, Mining, Medical, and Automotive/Off-highway.
7. The company has also been recognized as an Expansive-Established player in the overall ER&D and IoT Services in the 2021 Zinnov Zones ratings.
8. It has also installed a new SLM ® 280 system following international support from SLM Solutions. It is integrated into the company's first metal additive manufacturing facility in Jupiter, Florida. With over 100+ specialized engineers in design optimization for additive manufacturing, Cyient looks to further enhance its rapid development capabilities critical for digital manufacturing solutions.

In the past three years, the stock gave a return of 100.82% as compared to Sensex which rose by 47.90% and a 101.29% return compared to a 48.02% rise in Nifty.

The Memorandum of Understanding (MOU) signed between IIT Hyderabad and Cyient is aligned with the Government’s goals of building a vibrant semiconductor design and innovation ecosystem to enable the emergence of India as a global hub for electronics manufacturing and design. The acquisitions made by the company will enhance its position as a leader in the Plant and Product Engineering sector, strengthen its presence in the energy industry with a focus on clean energy and expand its European footprint in the Nordic countries of Finland, Norway, and Sweden, and in Germany and France. Considering the growth in company’s working sector backed by the boost in telecom industry due to 5G roll out across the globe and strong financial performance recorded by the company, the stock is good to have in portfolio for long term period.

- Het Zaveri

- info@smartinvestment.in

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