Shares of IT firm Cyient surged 10 percent to hit all-time high in intra-day deals on Friday, rising for the third straight session on the robust business outlook and as it fixed a record date for the dividend.
The stock rose as much as 9.9 percent on Friday to its record high of ₹1,525.55. Meanwhile, it also advanced 5.7 percent in yesterday's deals (June 1) and 1.3 percent on May 31.
“This is to inform you that 12 June 2023 is fixed as the cut-off date for the purpose of final dividend and e-voting in connection with the Annual General Meeting of the Company scheduled to be held on 21 June 2023. It is further informed that the board of directors of the company has recommended a Final dividend of ₹16.00 per equity share (320 percent) on par value of ₹5.00 per share for the financial year ended 31 March 2023 to those members as on record date (12 June 2023) subject to the approval of members at the ensuing Annual General Meeting of the company. The dividend will be paid within 30 days from the date of AGM," Cyient said in a stock exchange filing.
The IT firm, in its FY23 annual report, also noted that it remains confident in strong growth across the industry verticals. The company also highlighted that on the back of strong demand for its services, robust order book with large deal wins and expected double-digit growth across its large verticals of transportation, connectivity and sustainability, it is guiding for consolidated services revenue growth of 15-20 percent.
“The outlook for FY24 for Energy, Industrial, and Plant Engineering (EIP) segment remains positive, with a strong sentiment that we forecast strong growth across our sustainability business. This growth will be driven by increased investment from customers in areas such as digital twins, carbon capture and storage, autonomous operations, autonomous mining, and the expansion of digital factories,” Cyient said in its annual report.
It also stated that FY24 will prove to be an exciting and transformational year for the Cyient group as they grow Cyient and Cyient DLM (Design Led Manufacturing) as separate entities. The new structure promises to boost the growth and ambitions of each organization in its own trajectory, added the report. The company also noted that Cyient DLM's proposed Initial Public Offering (IPO) might also be launched in the current fiscal year.
The stock has given multibagger returns, rising 110 percent from its 52-week low of ₹724, hit on November 3, 2022. Meanwhile, it has advanced 71 percent in the last 1 year.
Just in 2023 YTD, the stock has rallied over 84 percent, giving positive returns in all 6 months of the current calendar year till date. It has advanced 15 percent in 2 trading sessions of June after a 10 percent gain in May and an 18 percent rise in April. Meanwhile, in the first 3 months of 2023, the stock posted single-digit gains.
In the March quarter, Cyient posted a 5.5 percent rise in its net profit at ₹163 crore as against ₹154.2 crore in the year-ago period. Its revenue from operations in Q4 jumped 30 percent to ₹1,751.4 crore versus ₹1,230.6 crore in the same period last year.
Cyient is engaged in providing global technology services and solutions specialising in geospatial, engineering design, IT solutions and data analytics. The company specialises in software services and solutions for the manufacturing, utilities, telecommunications, transportation & logistics, local government and financial services markets.