Cyient Limited · NSE:CYIENT
Cyient — Q3 FY23 Earnings Presentation
25 slides from Cyient's earnings presentation, January 2023
Slide 1: Q3 FY23 Investor Presentation
© CYIENT 2023 | Confidential Q3 FY23 INVESTOR PRESENTATION
Slide 2: Confidentiality Statement
Confidentiality Statement The information shared herein is strictly confidential, proprietary and unique to the company. It is only made and shared for the purpose and extent it is intended for and no other. Usage or sharing of the said information in any form, directly or indirectly and in any mann
Slide 3: Leadership Team
Leadership Team KRISHNA BODANAPU AJAY AGGARWAL KARTHIK NATARAJAN Managing Director & CEO Executive Director & CFO Executive Director & COO © CYIENT 2023 | Confidential 3
Slide 4: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Operational Summary • Financial Highlights • Income statement update • Business Highlights • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 4
Slide 5: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 5
Slide 6: Disclaimer
Disclaimer • Cyient Ltd’s subsidiary, Cyient DLM Limited has filed a draft red herring prospectus (DRHP) dated January 9th, 2023 with the Securities and Exchange Board of India, BSE and NSE in connection with its proposed IPO. • As we are in the SEBI mandated quiet period, the management will not be
Slide 7: Highlights for the Quarter
Highlights for the Quarter Financial Highlights for Quarter 36.7% YoY / 15.9% QoQ (INR terms) • Group revenue at $197.0 Mn; growth of 28.6% cc YoY 28.6% YoY / 13.4% QoQ (CC terms) (24.8% in USD) and 13.4% cc QoQ (12.7% in USD) Revenue 24.8% YoY / 12.7% QoQ (USD terms) • Group revenue at ₹16,182 Mn;
Slide 8: Highlights for the Quarter
Highlights for the Quarter Cyient Reinforces its Position as a Major Contender in Everest's Industry 4.0 Services PEAK Matrix® Assessment 2022 • The PEAK Matrix is a proprietary framework for assessing service providers' relative market success and overall capability based on performance, experience
Slide 9: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 9
Slide 10: Revenue for Q3 FY23
Revenue for Q3 FY23 Revenue Q3 FY23 QoQ YoY Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Revenue Group • Group growth at 28.6% cc $ Mn 197.0 12.7% 24.8% 174.8 161.6 156.7 157.9 YoY and 13.4% QoQ CC growth 13.4% 28.6% • Services growth at 34.4% ₹ Mn 16,182 15.9% 36.7% 13,962 12,501 11,812 11,834 cc YoY and 11.9%
Slide 11: Hedge Book
Hedge Book Value in Respective Outstanding ForwardContracts Currency Mn. Booked Rate (in ₹) for next 12 Months Wgt.Avg 31-Dec-22 30-Sep-22 31-Dec-21 4.9 Variance of 153150157 2.1 2.0 (0.4) 101.4 96.5 2.3 81.0 81.5 85.7 83.7 2.2 82 82 75 62.5 60.2 56.6 54.4 31 29 32 27 27 29 18 18 20 7 7 7 USD EUR GB
Slide 12: Income statement for Q3 FY23
Income statement for Q3 FY23 All Figures in ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 QoQ EBITDA and EBIT Movement Revenue 16,182 13,962 11,834 • Normalised services EBIT margin excluding acquisitions at EBITDA (Reported) 2,692 1,864 2,129 15.1%; up by 185 bps QoQ due to improvement in EBITDA (Normalised)^ 2,783
Slide 13: PAT and EBIT Walk – Reported to Normalized
PAT and EBIT Walk – Reported to Normalized EBIT walk - Reported to Normalised (₹Mn) ₹ Mn Note Q3 FY23 Q2 FY23 Q3 FY22 Q3 Note Particulars Description ₹ Mn Reported EBIT (Group) 1,993 1,234 1,642 Legal fees paid in relation to Margin (%) 12.3% 8.8% 13.9% Exceptional 89 the civil class action antitrus
Slide 14: EBIT Margin Bridge for Q3 FY23
EBIT Margin Bridge for Q3 FY23 Particulars Q2 FY23 Q3 FY23 Group EBIT (Reported) 8.8% 12.3% Services EBIT (Reported) 8.9% 13.3% Exceptional items and One off M&A expenses 3.5% 0.7% Services EBIT (Normalised) 12.5% 13.9% Less: Acquisitions' impact -0.7% -1.1% Services EBIT w/o acquisitions (Normalise
Slide 15: Cash Generation for Q3 FY23
Cash Generation for Q3 FY23 All Figures in ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 Cash Generation Services • Cash and cash equivalents, including long-term Profit before tax 1,897 949 1,692 treasury investments, at ₹8,694 Mn at the end of (+/-) Non-cash & non-operating items 847 796 395 Q3FY23 compared to ₹13
Slide 16: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 16
Slide 17: BU Performance Q3 FY23
BU Performance Q3 FY23 Revenue $ Mn Q3 FY23 QoQ (cc) QoQ ($) YoY (cc) YoY ($) • Services growth stood at 11.9% cc QoQ and 11.2% in USD terms ARC 86.7 1.7% 0.8% 8.6% 4.6% o ARC witnessed growth of 1.7% Aerospace 35.5 4.4% 3.7% 8.1% 6.3% cc QoQ Rail transportation 10.4 -4.9% -6.0% -21.0% -27.1% o MEU
Slide 18: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2023 | Confidential 18
Slide 19: Business Performance & Outlook (1/2)
Business Performance & Outlook (1/2) The markets continue to be dynamic considering the current geopolitical situation, high inflation, rising interest rates, higher energy prices, Supply Chain constraints etc. However, the globalization of R&D activities, the rising demand for integrating the lates
Slide 20: Business Performance & Outlook (2/2)
Business Performance & Outlook (2/2) MEU Mining: Global efforts to decarbonize and Energy transition efforts drive demand for iron ore, zinc, cobalt, copper etc. This increased demand emphasizes the need for Intelligent, Safe and Sustainable Mine Operations. Opportunities are arising from Automation
Slide 21: Innovative Technology Solutions and Programs
Innovative Technology Solutions and Programs Trends Technology Solutions / Programs SBC (Single Board Computing Platform): A flexible, scalable and re-usable pre-validated SW/HW platform/framework based on Cyient’s Middleware SW and off the shelf HW. Leveraged as “accelerator” to support low risk an
Slide 22: Outlook
Outlook • We see good momentum in our organic business and our Q4 organic revenue in constant currency will be higher than Q3 driven by growth in Aerospace, Mining, Comms & Automotive • We will add 14-15% in FY23 revenue due to acquisitions in constant currency • We expect FY23 normalized EBIT margi
Slide 23: About Cyient
About Cyient Cyient (Estd: 1991, NSE: CYIENT) is a global engineering and technology solutions company. As a Design, Build, and Maintain partner for leading organizations worldwide, Cyient takes solution ownership across the value chain to help customers focus on their core, innovate, and stay ahead
Slide 24: Disclaimer
Disclaimer All the references to Cyient’s financial results in this update pertain to the company’s consolidated operations comprising: Wholly-owned and step down subsidiaries: Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient Australia Pty Ltd; Cyient Singapore Private Limited; Cyient KK; Cyi
Slide 25: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential