Cyient Limited · NSE:CYIENT

Cyient — Q1 FY2018 Earnings Presentation

16 slides from Cyient's earnings presentation, Jul 13, 2017

  1. Slide 1: Quarterly Earnings Briefing Q1 FY18

    QUARTERLY EARNINGS BRIEFING Q1 FY18 13-07-2017 CYIENT © 2017 CONFIDENTIAL

  2. 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

  3. Slide 3: Content

    Content  Highlights for the Quarter  Financial Update • Income statement update • Cash generation and other updates  Business Update • M&A update • Industry outlook • Future outlook 13-07-2017 CYIENT © 2017 CONFIDENTIAL 3

  4. Slide 4: Highlights for the Quarter (1/2)

    Highlights for the Quarter(1/2) Financial Highlights for Q1 FY18  YoY revenue growth of 12.8% in US$ terms (US$141Mn)  Services revenue YoY growth 12.4% and QoQ growth 3.2%; at US$129 Mn: highest ever  Operating Profit YoY growth of 6.5%; at ₹1,160 Mn despite wage hike and rupee appreciation  Ne

  5. Slide 5: Highlights for the Quarter (2/2)

    Highlights for the Quarter (2/2) CSR Activities Infrastructure  Adopted 9 Government Schools;  Opened a near shore facility in Bengaluru for supporting underprivileged children for one of the aerospace customer taking the total to 25  Started operations in Prague for an aerospace  Girl child enr

  6. Slide 6: Revenue at a Glance

    Revenue at a Glance Revenue Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 YoY (%) QoQ (%) Revenue (US$ Mn) 124.7 136.5 135.8 141.0 140.6 12.8% -0.2% Revenue (₹ Million) 8,349 9,136 9,171 9,410 9,070 8.6% -3.6% Revenue $ Growth Business Units $ Mn YoY QoQ  QoQ growth of 3.2% in Services; Aerospace & Defen

  7. Slide 7: Income Statement

    Income Statement Particulars UoM Q1 FY17 Q4 FY17 Q1 FY18 Operating Profit Movement Revenue ₹ Mn 8,349 9,410 9,070  Despite wage hike and foreign Cost of Revenue ₹ Mn 5,425 6,179 5,904 Gross Profit ₹ Mn 2,924 3,231 3,166 exchange impact, the gross margin is Operating Profit ₹ Mn 1,090 1,247 1,160 up

  8. Slide 8: Cash Generation

    Cash Generation CashGeneration  Cash & cash equivalents crossed ₹ Particulars UOM Q4 FY 17 Q1 FY 18 ₹ Mn 9,706 10,320 10,000 Mn for the first time; at Cash Position $ Mn 149.7 159.4 ₹10,320 Mn; highest ever ₹ Mn 1,229 767 FCF - Cyient $ Mn 18.4 11.9 % of EBITDA 81.3% 49.1%  Healthy FCF to EBITDA c

  9. Slide 9: Hedge Book and Other Income

    Hedge Book and Other Income Value in respective Outstanding Forward Contracts* currency Mn Other income Particulars Q1 FY17 Q4 FY17 Q1 FY18 30-Jun-17 31-Mar-17 30-Jun-16 Income from Treasury 118 114 113 Interest on Investments/deposits 80 104 104 Dividend on mutual funds 10 10 11 70 72 73 Subtotal (

  10. Slide 10: Investment Pipeline & Focus Areas: Q1 FY'18

    Investment Pipeline & Focus Areas: Q1 FY’18 M&A Corporate Investments 7 Vertical focused M&A 2 Medical tech, Communication strategy in key geographic 1 Technology, IoT/M2M & 1 markets; large acquisitions Advanced avionics Pre-LOI LOI Pre-LOI LOI *Pre LOI and LOI reflect a balance position Active Inv

  11. Slide 11: Industry outlook (1/4)

    Industry outlook (1/4) Global A&D market will experience stronger growth in 2017, following multiple years of positive, but subdued growth rates. Revenues in the defense sector is expected to increase by 3.2% in 2017, driven primarily by spending in the U.S. For FY2018, we expect growth in our avion

  12. Slide 12: Industry outlook (2/4)

    Industry outlook (2/4) The U&G industry continues to witness growth, spearheaded by the adoption of grid edge technology. Advanced Metering Infrastructure (AMI) and Smart Meters rollouts continue, generating more data, software, and analytics-related opportunities. Along with this, the price and cos

  13. Slide 13: Industry outlook (3/4)

    Industry outlook (3/4) The industry continues to witness pressure on Capex spending. Original Equipment Manufacturers are shifting focus away from product development to cost takeout. The emphasis is on improving products through new technologies, such as telematics, electronics, IoT, and analytics.

  14. Slide 14: Industry outlook (4/4)

    Industry outlook (4/4) The global medical device market is expected to reach an estimated $342.9 billion by 2021 with a CAGR of 4.6% from 2016 to 2021. The major drivers of growth for this market are the growth in healthcare expenditure, increasing health awareness, and ageing population. The emergi

  15. Slide 15: Future outlook for FY18

    Future outlook for FY 18 Revenue Growth  Double digit growth in the services business  DLM business will be in the ballpark of 20%+ growth Margin Expansion of ~50bps through Operational Efficiency Improvements  Operational improvements: ~390 bps  Utilization ~70 bps; Higher Offshore mix ~50 bps

  16. Slide 16: Q&A

    Q&A 13-07-2017 CYIENT © 2017 CONFIDENTIAL 16

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