Cyient DLM Share Price After Q3 Results Announcement: Share Down by 12%

Market Performance

On January 22, 2025, Cyient DLM shares experienced a sharp 12% drop, trading at Rs 533 by 9:35 AM. The decline follows the company's Q3 financial results, showing a significant reduction in both net profit and margins. Over the past year, the stock has underperformed, with an 18% decline compared to the Nifty 50's 3% drop.

Financial Overview

Cyient DLM reported a decrease in key financial metrics for Q3 FY25:

• Revenue: Revenue from operations grew to Rs 444.2 crore in Q3 FY25 from Rs 321 crore in Q3 FY24.
• EBITDA: The company's EBITDA for Q3 FY25 stood at Rs 35.9 crore, reflecting an increase from Rs 29.4 crore in the same quarter last year.
• EBITDA Margin: The EBITDA margin shrank to 8.1% in Q3 FY25, down from 9.2% in Q3 FY24.
• Net Profit: The company's consolidated net profit dropped by nearly 30% sequentially and 40% year-on-year, coming in at Rs 11 crore.

The decline in profitability was primarily attributed to higher employee costs and other expenses related to the consolidation of Altek Electronics, Inc. This EMS company specializes in PCB assemblies, box builds, and cable harnesses.

Company Details

Cyient DLM is an electronics system design and manufacturing company that offers services in designing, integrating, testing, and producing electronic components. It serves various industries, including aerospace, defence, and other high-tech engineering segments. The company's customer base spans regions including India, North America, Europe, China, and Japan.

Summary

Cyient DLM's stock fell 12% following the release of its Q3 FY25 results, which showed a decline in both net profit and margins. While the company reported growth in revenue and EBITDA, the higher costs related to Altek Electronics' consolidation weighed heavily on profitability. Despite positive revenue growth, the company faced challenges in maintaining margins, resulting in a mixed performance for the quarter.