Cyient Reports Strong Sales Growth Amid Declining Profitability in Q3 FY24-25

Cyient, a midcap player in the IT software industry, has reported its financial results for the third quarter of FY24-25, which were announced on January 23, 2025. The company experienced an adjustment in its evaluation, with its score reflecting a notable shift over the past three months.
The financial data reveals that Cyient achieved its highest operating profit to interest ratio in five quarters, reaching 13.60 times, suggesting effective management of interest obligations. The debt-equity ratio remains low at 0.11 times, indicating a continued trend of reduced borrowing relative to equity capital. Additionally, net sales reached Rs 1,926.40 crore, marking the highest quarterly sales in the last five quarters, while cash and cash equivalents stood at Rs 1,382.50 crore, the highest in the last six half-yearly periods.

However, the company encountered challenges, with profit after tax (PAT) reported at Rs 122.30 crore, reflecting a year-on-year decline of 34.2%. Profit before tax, excluding other income, also saw a reduction of 17.73% year-on-year, amounting to Rs 190.20 crore. The operating profit margin decreased to 14.48%, and earnings per share fell to Rs 11.02, indicating pressures on profitability and operational efficiency.

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