Cyient is exploring the divestment of its DLM unit seven years after the Rangsons Electronics acquisition. The company wants to keep a minority stake in DLM, still offering design-engineering-short series manufacturing.
Cyient made its largest acquisition ever with Citec. Citec is headquartered in Vasa, Finland. The company provides primarily power plant engineering services.
Cyient is to acquire Melbourne-based Integrated Global Partners (IG Partners) for AUD 12m in cash (USD 9m) + earn-outs. IG Partners is a mining business and organizational consulting firm. The company has a specialty in enterprise asset management. It had in FY20 revenues of AUD 15m (USD 11m) and a headcount of 40.
Cyient surprised, negatively, the markets by announcing a decline of 9.7% in its Q4 FY20 revenues (to USD 149m) and an adjusted EBIT margin down 440 bps (to 8.4%).
Karthik Natarajan, the former head of Tech Mahindra’s Integrated Engineering Services (IES), has joined Cyient as COO. We think, the appointment of Mr. Natarajan is a welcome move for Cyient, which has faced growth challenges in the past quarters, resulting from its client concentration and its exposure to Boeing and Pratt & Whitney.
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Cyient’s revenues in Q1 FY20 declined, slightly, by 2.6% yoy. The decline came as a surprise as the company had signaled it had bottomed out in Q4 FY19.
Cyient warned investors that its Q4 FY19 would not be as good as expected. The company saw softness in both its services and DLM activities.
Cyient has acquired the remaining 26% in Rangsons Electronics it did know own, for ~USD 60m. The name Rangsons Electronics may not ring a bell, as Cyient now reports the business under the name DLM.
Cyient’s revenues were up 8.6% yoy and up 10.7% yoy at CC in Q3 FY19 to $165m.
UDATED: Cyient: Another Solid Performance in Q2 FY18 Cyient continued, in Q2 FY19, to enjoy double-digit
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