Cyient DLM shares decline over 5% after 15% slump in Q1 net profit

Cyient DLM Ltd shares fell over 5 percent to Rs 466.35 on July 24 at 9:26 am, as market reacted negatively to the company’s June quarter numbers. The integrated electronics and mechanical manufacturer reported  a 15.2 percent YoY decline in quarterly net profit at Rs 5.359 crore.

Net Sales were rose 27.6 percent to Rs 217.15 crore year-on-year. EBIDTA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumped 72.6 percent to Rs 20 crore. According to the regulatory filing, finance costs were higher due to higher borrowings and an increase in interest rates. While other income was lower YoY, mainly due to unrealized forex gain in FY23.

In segment-wise performance, Aerospace and Defence grew 22 percent and 12 percent, respectively, aided by Make In India initiatives and offsets. The Industrial Segment recorded YoY growth of 75 percent, while the Med Tech business recorded de-growth of 14 percent YoY due to lower demand in COVID-related business.

The Printed Circuit Board Assembly (PCBA) business remained prominent across all industry segments. Both the PCBA and Cables businesses witnessed substantial growth of over 60 percent YoY. However, the Box-build revenue declined by 23 percent due to seasonal factors. The “Others” category, accounting for 2 percent of the business share, includes Precision Machining Revenue.

The company’s export business saw higher demand in the Industrial and Aerospace segments, contributing to a higher export share of 69 percent, which includes Deemed exports of 13 percent.

Earlier this month, shares of Cyient DLM had a blockbuster listing on Dalal Street, opening at Rs 401, a 51 percent premium to its issue price of Rs 263.

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Earlier this month, shares of Cyient DLM  had a blockbuster listing on Dalal Street, opening at Rs 401, a 51 percent premium to its issue price of Rs 263.

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