As of January 24, 2025, Cyient Limited’s share price experienced a significant decline following the release of its Q3 FY25 financial results and other corporate developments. Here’s a detailed analysis:
1. Share Price Movement
- Intraday Decline: The stock plummeted over 19%, reaching a new 52-week low of ₹1,410 per share.
2. Financial Performance Highlights
- Net Profit: The company reported a 31.7% quarter-over-quarter (QoQ) decrease in net profit, amounting to ₹122.3 crore in Q3 FY25, down from ₹179.1 crore in Q2 FY25.
- Revenue: Despite the decline in profit, revenue from operations increased by 4.2% QoQ to ₹1,926.4 crore, up from ₹1,849.1 crore in the previous quarter.
- EBITDA and Margins: Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 14.4% sequentially to ₹279 crore, leading to a contraction in EBITDA margin by 250 basis points to 14.5%.
3. Corporate Developments
- CEO Departure: The sudden exit of the CEO has raised concerns among investors, contributing to the stock’s decline.
- Revised Guidance: The company lowered its growth guidance for FY25, further impacting investor sentiment.
4. Analyst Reactions
- Downgrades: JP Morgan downgraded Cyient to a “neutral” rating and reduced the target price to ₹1,750, citing concerns over the company’s performance and leadership changes.
Conclusion
The combination of a significant drop in net profit, leadership uncertainties, and reduced growth projections has led to a sharp decline in Cyient’s share price. Investors are advised to monitor the company’s strategic responses to these challenges and consider analyst insights before making investment decisions.
