Fri Jan 24 04:30:00 UTC 2025: ## Cyient’s Q3 Profit Dips Despite Revenue Rise; CEO Steps Down

**Hyderabad, India –** Cyient, an engineering and IT services company, reported a significant drop in net profit for the October-December 2024 quarter (Q3FY25), despite a revenue increase. Net profit fell 31.7 percent to ₹122.3 crore (approximately $14.8 million USD), compared to ₹179 crore in the previous quarter. However, revenue from operations climbed 4.2 percent to ₹1,926.4 crore (approximately $233 million USD).

The decline in profit was attributed to slower growth in the company’s largest segment, digital, engineering, and technology (DET), which accounts for over 76 percent of total revenue. This slowdown was primarily due to delays in aerospace projects and a weakening rail sector within the transportation division. Increased costs, particularly a 26 percent jump in materials consumed, also impacted profitability.

Despite the overall profit drop, Cyient’s DET segment saw a 2.1 percent quarter-on-quarter revenue increase to ₹1,480 crore. The company’s smaller design-led manufacturing (DLM) business showed strong growth, with revenue rising 38 percent. Furthermore, Cyient recorded an all-time high order intake of $312.3 million for the quarter, representing a nearly 100 percent quarter-on-quarter increase. The company also secured 13 large deals within its DET segment, totaling $234.5 million in contract value.

In a significant development, Cyient announced that Karthikeyan Natarajan stepped down as CEO, with Natarajan assuming interim operational control. Debjani Ghosh, a Distinguished Fellow at NITI Aayog, joined the board as an Independent Director.

Executive Vice Chairman and Managing Director Krishna Bodanapu highlighted the company’s positive year-on-year revenue growth in constant currency and the strong performance of its semiconductor business, including a new Center of Excellence with Allegro Microsystems. He also noted the board’s approval to explore additional capital raising options for the semiconductor subsidiary. Despite the mixed Q3 results, the company’s strong order book and strategic investments suggest a focus on future growth.

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