Q3 Results Review and Expectation on Cyient Ltd

Cyient (formerly Infotech Enterprises Limited) is an Indian multinational technology company that is focused on engineering, manufacturing, data analytics, and networks and operations. Infotech Enterprises Ltd. was established in 1991 in Hyderabad. • Reported another quarter of underperformance as order book is a concern. • Reported adjusted EBITDA of Rs36 cr (excl. one-offs), 10% lower than expectation. • There is ninth straight quarter of order book decline, indicating a weak demand. • We lower FY25/26/27E estimates by (-)34%/(-)16%/(-)12%. (EBITDA: Earnings before interest depreciation and tax, P/E: Price/Earnings, DCF: Discounted Cash Flows, EPS: Earnings per share) Q3FY25 Result Update: Positives: • Cyient reported a consolidated revenue of Rs444.2 cr (+36% yoy), in line with expectations due to the contribution from Altek (revenue: Rs87cr). • There are three new deals in the pipeline, which remain key monitorables to watch. Negatives: • Company indicated softness until H1FY26 due to a weak order book. • Weak margin profile and reducing order book keep us cautious on the company’s long-term growth prospects.