Hyderabad: Cyient Ltd, formerly Infotech Enterprises, on Thursday posted an over two per cent decline in profit at Rs 73.9 crore in the first quarter of the current financial year over yearago period due to wage hikes announced in the quarter. The profit in the corresponding quarter last year was Rs 75.6 crore. The company’s topline grew by over 12 per cent at Rs 830 crore in Q1FY17 as against Rs 725.8 crore in Q1FY16.
Commenting on the results, Mr Krishna Bodanapu, managing director and CEO, said, “Financial performance in Q1FY17 is in line with our expectation both on the top line and the bottomline. The services business grew 5.4 per cent in dollar terms driven by growth in aerospace and defense (A&D), transportation and communications business units.”
The profit, however, he said, was impacted by wage hikes which the company had implemented in the quarter. “The headwinds due to wage hike were offset by improved quality of on-site revenue and operational efficiency. We closed the quarter with an improvement of 0.9 per cent in OPM for the services business and an increase of 0.1 per cent for the group,” he said.
Looking ahead, Mr Bodanapu said the second quarter looks heal-thy for continued growth despite adverse foreign exchange impact in the short term. The company, the chief executive said, expects margin to be flat to marginally positive for the year. Consequently, we will deliver double digit earnings growth for the year.
