Cyient Limited · NSE:CYIENT

Cyient — Q4 FY20 Earnings Presentation

29 slides from Cyient's earnings presentation, Sep 25, 2020

  1. Slide 1: Investor Presentation Annexure Q4 FY20 & FY20

    Investor PRESENTATION Annexure Q4 FY20 & FY20 CYIENT © 2020 CONFIDENTIAL

  2. Slide 2: Message from the Management

    Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Our performance was below expectations both on revenue and margin terms largely due to the impact of COVID which was significant on many parts of our business. Our revenu

  3. Slide 3: Message from the Management

    Message from the Management Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “The revenue for FY20 stood at $625.2 Mn (₹ 44,274 Mn) with operating profit of $57 Mn (₹ 4,084 Mn) and normalized PAT of $52.2 Mn (₹ 3,727 Mn). Our sustained focus on collections led to a robust EBIDTA

  4. Slide 4: Business Performance & Outlook (1/3)

    Business Performance & Outlook (1/3) Aerospace & Defense Aerospace & Defense BU witnessed a growth of 4.7% QoQ and de-growth of 6.9% YoY in Q4 FY20 predominately driven by weak customer spend and impact of Covid pandemic from mid of Q4. For full year, BU de-growth is at 4.7% YoY. Services business i

  5. Slide 5: Business Performance & Outlook (2/3)

    Business Performance & Outlook (2/3) E&U The Energy and Utilities BU witnessed a de-growth of 20.5% QoQ and 18.3% YoY in Q4 FY20 impacted by closing of two major utilities projects and supply side challenges in Q4. For full year Energy and Utilities BU witnessed a de-growth of 0.6% YoY. The BU witne

  6. Slide 6: Business Performance & Outlook (3/3)

    Business Performance & Outlook (3/3) Portfolio Portfolio BU witnessed a de-growth of 3.0% QoQ and 10.6 % YoY. The business was impacted by supply side challenges in Q4 predominantly in the industrial business. For full year Portfolio BU witnessed a de- growth of 9.7% YoY. Our Geospatial business gre

  7. Slide 7: Consolidated Financial Metrics

    Consolidated Financial Metrics Key Operational Metrics (₹Mn) Growth % Growth % ₹ Mn Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 QoQ YoY YoY Revenue 10,736 11,060 11,629 -2.9% -7.7% 44,274 46,175 -4.1% * Normalised EBIT 905 1,063 1,490 -14.9% -39.3% 4,084 5,329 -23.4% Normalised EBIT margin 8.4% 9.6% 12.8% -11

  8. Slide 8: Consolidated Financial Metrics

    Consolidated Financial Metrics PAT walk - Reported to Normalised (₹Mn) ₹ Mn Note^ Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Reported PAT 452 1,083 1,768 3,425 4,785 Exceptional Items Impairment of GSEA intangible asset 1 109 109 Impairment of intangible asset under 2 222 222 development Impairment of Certsa

  9. Slide 9: Note on exceptional items in Q4FY20 and Q4FY19

    Note on exceptional items in Q4FY20 and Q4FY19 Note Exceptional Items ₹ Mn Description Impairment of Global Services Carrying value of the asset has been impaired during the quarter, based on forecast 1 109 Engineering Asia intangible asset of underlying business contracts. However, business in tota

  10. Slide 10: Consolidated Revenue Segmentation

    Consolidated Revenue Segmentation By Geography (%) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Americas 55.7% 56.8% 54.0% 55.8% 53.1% Europe, Middle East, Africa 25.7% 25.1% 24.7% 26.4% 23.8% Asia Pacific (includes India) 18.6% 18.1% 21.3% 17.8% 23.1% By Business Unit (%)1 Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Ae

  11. Slide 11: Consolidated Operations Metrics

    Consolidated Operations Metrics Account Receivables (in Days) Q4 FY20 Q3 FY20 Q4 FY19 DSO Total 95 94 88 - Billed 61 59 61 - Unbilled 34 35 27 Order Intake ($ Mn)2 Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Cyient Services 196 173 185 646 749 DLM 60 8 11 110 86 Group OI Total 255 181 196 756 835 2 The Order

  12. Slide 12: Consolidated Customer Metrics

    Consolidated Customer Metrics Top Clients: Revenue Contribution (%) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Top 5 31.4% 33.0% 31.8% 31.8% 37.1% Top 10 43.6% 44.5% 43.0% 43.2% 49.7% No. of Million $ Clients Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 20 Mn+ 4 4 4 4 4 10 Mn+ 11 11 11 11 11 5 Mn+ 26 27 29 26 29 1 Mn+

  13. Slide 13: Consolidated Employee Metrics

    Consolidated Employee Metrics Employee Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Total Manpower 13,859 14,472 15,084 13,859 15,084 Technical & Pool 12,825 13,405 13,916 12,825 13,916 Non-Technical 349 378 393 349 393 Support 685 689 775 685 775 Voluntary Attrition* 18.9% 19.7% 19.9% 18.7% 19.6% Involuntary

  14. Slide 14: Consolidated Other Financial Metrics (1/2)

    Consolidated Other Financial Metrics (1/2) Other Income (₹ Mn) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Income from Investments 102 96 148 420 539 Fx Gain/(Loss) - Realised 81 151 -6 514 -180 Fx Gain/(Loss) - Unrealised -48 184 126 61 107 Others 71 67 521 255 873 Total 206 498 789 1250 1340 Capex (₹ Mn) Q4

  15. Slide 15: Consolidated Other Financial Metrics (2/2)

    Consolidated Other Financial Metrics (2/2) Outstanding Forward Contracts (Mn of respective currencies)^ Q4 FY20 Q3 FY20 Q4 FY19 USD / INR 70.8 68.7 64.3 EURO / INR 29.5 25.9 28.6 GBP / INR 6.7 6.5 8.4 AUD / INR 28.3 24.7 22.5 ^Forward contracts are taken only for services business CYIENT © 2020 CONF

  16. Slide 16: Consolidated Income Statement

    Consolidated Income Statement ₹ Mn Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Operating Revenue 10,736 11,060 11,629 44,274 46,175 Cost of Revenue 7,139 7,082 7,524 28,963 30,127 Direct Salary and related costs 4,837 4,873 4,989 19,625 20,039 Direct Travel 196 190 243 769 1,002 Sub contract and others 1,092

  17. Slide 17: Consolidated Balance Sheet

    Consolidated Balance Sheet ₹ Mn Q4 FY20 Q3 FY20 Q4 FY19 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 550 550 552 - Reserves and surplus 25,027 25,539 25,070 Total - Shareholders' funds 25,577 26,089 25,622 Non-current liabilities - Long-term borrowings and liabilities 3,556 3,591 1,813

  18. Slide 18: Consolidated Cash Flow Movement

    Consolidated Cash Flow Movement ₹ Mn Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Free cash flow, after non-operating income 1,175 1,944 402 4,102 3,770 Long term investments -463 -331 -995 -1,496 -2,561 Equity 0 0 0 17 21 Borrowings -250 785 -75 467 801 Exceptional item - Cash RSU - 0 0 -117 Dividends -1,182

  19. Slide 19: Cyient Metrics (Excluding Design Led Manufacturing)

    Cyient Metrics (Excluding Design Led Manufacturing) CYIENT © 2020 CONFIDENTIAL 19

  20. Slide 20: Cyient Metrics (Excluding Design Led Manufacturing) (1/3)

    Cyient Metrics (Excluding Design Led Manufacturing) (1/3) By Geography (%) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Americas 57.0% 57.5% 57.0% 58.4% 56.7% Europe, Middle East, Africa 27.4% 25.5% 26.4% 26.5% 25.8% Asia Pacific (including India) 15.6% 16.9% 16.7% 15.1% 17.5% By Business Unit (%) Q4 FY20 Q3 F

  21. Slide 21: Cyient Metrics (Excluding Design Led Manufacturing) (2/3)

    Cyient Metrics (Excluding Design Led Manufacturing) (2/3) Currency Mix (%) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 USD 56.6% 55.0% 56.2% 56.7% 56.5% EURO 13.2% 14.0% 14.6% 13.9% 13.8% GBP 10.8% 10.0% 10.0% 9.3% 8.4% AUD 8.5% 9.0% 10.3% 9.0% 11.7% Others 10.9% 12.0% 8.9% 11.0% 9.7% Account Receivables (in

  22. Slide 22: Cyient Metrics (Excluding Design Led Manufacturing) (3/3)

    Cyient Metrics (Excluding Design Led Manufacturing) (3/3) Top Clients: Revenue Contribution (%) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Top 5 35.5% 36.6% 35.7% 36.1% 37.1% Top 10 49.2% 49.3% 48.4% 49.0% 49.7% No. of Million $ Clients Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 20 Mn+ 5 4 4 5 4 10 Mn+ 10 11 13 10 13

  23. Slide 23: Cyient Metrics (Design Led Manufacturing)

    Cyient Metrics (Design Led Manufacturing) CYIENT © 2020 CONFIDENTIAL 23

  24. Slide 24: Cyient Metrics (Design Led Manufacturing) (1/3)

    Cyient Metrics (Design Led Manufacturing) (1/3) Income Statement - Abridged (In ₹ Mn)1 Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Net Revenue 1,222 1,076 1,282 5,282 5,583 Direct Salaries & other costs^ 247 233 195 1018 828 Material Cost^ 813 661 941 3,643 4,097 Gross Profit 162 182 146 622 657 SG&A 131 147

  25. Slide 25: Cyient Metrics (Design Led Manufacturing) (2/3)

    Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Aerospace and Defense 65.4% 58.5% 59.2% 67.1% 63.6% Transportation 0.8% 1.0% 0.0% 0.4% 0.0% Energy & Utilities 15.5% 14.8% 15.1% 14.9% 15.5% Medical 17.5% 24.4% 14.2% 16.6% 13.0% Communications 0.2

  26. Slide 26: Cyient Metrics (Design Led Manufacturing) (3/3)

    Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 5 Mn+ 4 4 3 4 3 2 Mn+ 9 11 9 9 9 1 Mn+ 11 13 16 11 16 New Customers Added 2 0 0 4 1 Key Operational Metrics Q4 FY20 Q3 FY20 Q4 FY19 Headcount 608 618 661 DSO (in Days) 45 94 106 DPO (in Days) 7

  27. Slide 27: 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 of the curve

  28. Slide 28: 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

  29. Slide 29: Thank you

    Thank you CYIENT © 2020 CONFIDENTIAL 29

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