Cyient hits 52-week low on Q4 business update
Leading software service provider Cyient announced the business update for Q4FY19 on Monday, reacting to which the stock of Cyient touched its 52-week low.
The company in an exchange filing said that it expects a material decline in its Design Led Manufacturing (DLM) revenue for the quarter ended on March 2019. DLM contributes nearly 13 per cent to the company's revenue. According to the company, a large order delivery of US$ 5 million has been delayed owing to regulatory clearances at the customer's end.
In terms of service division, which contribute majorly to its revenue (~87 per cent), the company sees a deferment of orders in the Aerospace & Defence (3 clients) and Communications business verticals (2 clients) to FY20E. Cyient expects a QoQ growth in the range of around 1-2 per cent in Services segment.
The company is confident of achieving its earlier guidance for operating margin in FY19 given in Q3FY19.
Due to concern about the company’s profitability, the stock of Cyient nosedived to 52-week low of Rs. 571.10 apiece. At 14.43 hours the stock was trading at Rs. 580.30, down by 10.67 per cent from its previous close