Electronic Components company Cyient DLM announced Q2FY24 results: I. Business Overview: - Revenue growth of 71.5% YoY, driven by the Aerospace and Defense segment. - Order Backlog at 22,866 million, with a YoY decrease of 2,601 million. - EBITDA at Rs 235 million, with a YoY decrease of 0.5% due to one-off PPV gains in FY23 and an adverse revenue mix in Q2FY24. - PAT growth of 106.4% YoY, aided by Other Income. II. Highlights of the Quarter: - CYIENT received the Honeywell Supplier Excellence Award for the development of products through early supplier engagement. - Recognized by IPC as a top Indian company contributing significantly to the Electronics sector. - New Bangalore facility to be inaugurated in December, with plans to expand the Mysore facility for cable harness. III. Sectoral Trends: -Aerospace & Defense: The global A&D; EMS market is expected to grow by 6% from 2021 to 2026, driven by emerging markets such as space and supersonics/hypersonic. - Medical Technology & Healthcare: The global MTH EMS market is projected to grow by 6% from 2021 to 2026, with a focus on value-based, patient-centric remote monitoring solutions. - Industrials: The global industrial EMS market is expected to grow by 6.5% from 2021 to 2026, driven by digitization and industry 4.0 concepts. IV. Growth Plans: - Expanding into new industries like Electric vehicles and 5G. - Tapping into emerging EMS destinations in new geographies. - Pursuing inorganic expansion strategy for client proximity, geographic footprint, and expanding capabilities. - Strengthening India Defense focus to add new logos to defense portfolio and tap into the Make in India focus. V. Financials: - Q2FY24 revenue of Rs 2,918 million, with a YoY growth of 71.5%. - EBITDA margin of 8.1%, with a YoY decrease of 571 bps. - PAT margin of 5.0%, with a YoY increase of 85 bps. - Key KPI trends include order book growth, DSO, DIO, DPO, customer advance, and NWC. VI. IPO Proceeds Utilization: - IPO proceeds were utilized for funding working capital requirements, capital expenditure, loan repayment/prepayment, inorganic growth, and general corporate purposes. Result PDF
Conference Call with Cyient DLM Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.