Rs. 12 Dividend: Will Be Paid By 21 November, 6 November Record Date; BUY?

Cyient serves more than 300 clients worldwide, including 30% of the top 100 global innovators, with Intelligent Engineering solutions for a digital, autonomous, and sustainable future. Together with its stakeholders, Cyient is dedicated to creating a future that is socially conscious, culturally inclusive, and ecologically sustainable.

Cyient Dividend

"This is to inform that the Board of Directors of the Company has declared an Interim Dividend of Rs. 12/- per equity share (i.e. 240s%) on par value of Rs. 5/- per share for the financial year 2024-25. Further, this is to inform that 6 November 2024 is fixed as the record date for the above purpose and the dividend will be paid by 21 November 2024," said the company in a stock exchange filing.

Cyient Financials

Cyient's net profit increased by 0.45% to Rs 179.10 crore in the September 2024 quarter from Rs 178.30 crore in the September 2023 quarter. In the quarter that concluded in September 2024, sales increased by 3.97% to Rs 1849.10 crore, compared to Rs 1778.50 crore in the quarter that ended in September 2023.

Karthikeyan Natarajan, Executive Director and Chief Executive Officer, Cyient, said, "Cyient's Digital, Engineering and Technology (DET) business delivered revenue at US$ 173 Mn, growth of 1.3% QoQ and degrowth of 3.3% YoY in constant currency. DET EBIT margin stood at 14.2%, expansion of 75 bps QoQ. This was driven by solid growth in Aerospace, Connectivity and New Growth Areas. We continue to progressively improve our performance in the subsequent quarters and deliver a strong H2 FY25."

"We are witnessing strong momentum in New Growth Areas. Our top 10 accounts have shown significant growth, underscoring the success of our focused strategy. Our strategic investments in AI solutions and platforms are helping us win new deals and also drive transformation for our customers," he further added.

Commenting on the results, Krishna Bodanapu, Executive Vice Chairman and Managing Director, said, "Cyient Group witnessed positive Q2 FY25 results, with quarterly Group Revenue at US$ 220.7 Mn, growth of 2.6% YoY in constant currency. At a strategic level, we are making strong and continued progress towards unlocking the potential of our Semiconductor business. The partial divestment of our stake in Cyient DLM gives us the flexibility to use the proceeds towards fulfilling our capital requirements across organic and inorganic initiatives in our recently launched Semiconductor business to drive accelerated growth."

"We have reached an agreement to acquire 27.3% stake in Azimuth AI, a fabless custom ASIC company known for its expertise in Energy and Industrial applications with focus across global markets including India. This investment aligns strongly with our strategic growth objectives for the Semiconductor business. In-line with building further on our expertise in Energy Business we have expanded in the Middle East market and have reached an agreement to acquire Abu Dhabi & Gulf Computer Est. (ADGCE), an Abu Dhabi-based technology consulting and digital services provider primarily catering to the Energy sector," he stated.

Cyient Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "CYIENT is currently trading at Rs 1,830 on the daily chart, showing signs of recovery from its recent support level in the Rs 1,650-Rs 1,700 range, following a 21% correction from its recent peak. Immediate resistance is identified near Rs 1,900, and sustaining above this level may lead to further upside movement toward Rs 2,100. The Relative Strength Index (RSI) stands at 47.74 and is trending upward, indicating bullish momentum."

"Additionally, the stock has surpassed the 20-day EMA, signaling a potential reversal. The bullish reversal occurring around Rs 1,750 may present a buy-on-dips opportunity for traders. In light of the current technical structure and supporting indicators, such as the rising RSI and favorable moving averages , it presents a compelling buying opportunity .On the resistance front, Rs 1,940 and Rs 2,030 are key levels that traders should monitor as potential targets. Investors holding positions should consider maintaining a stop-loss at Rs 1,695," the analyst further commented.