21 April 2016
4QFY16 Results Update | Sector: Technology
Cyient
Buy
BSE SENSEX
25,880
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
7,912
CYL IN
112.5
54.2 / 0.8
641 / 371
8/-5/4
46
77.8
CMP: INR482
TP: INR550(+14%)
Drop in profitability casts shadow over the near term
Margin disappointment as acquisitions hurt:
CYL’s 4QFY16 EBITDA margin decline of
110bp to 13% was a significant miss (estimate of 15.4%) and an overarching concern
heading into FY17. ~150bp was attributed to weak performance in Softential business,
where a shortfall of software licenses amounting to ~USD2m flow down to the
operating profit. The other acquisition’s (Rangsons) faster-than-core-business growth
contributed to another 30bp due to change in business mix. However, revenue growth
of 2.5% QoQ in Engineering and 8% QoQ in DNO (ex. Softential) validates the
commencement of recovery in revenue growth.
Meeting margin guidance may be a tall order…:
CYL expects core business to grow by
at least 10% in FY17, Rangsons to expand 50% - implying overall USD growth of ~13%.
Also, it cited expectation of 150bp uptick in margins, from 13.7% in FY16. While
visibility on revenues lends confidence, 13% exit operating margin and impact from
wage hikes in 1QFY17 would mean CYL will start to climb from ~12% EBITDA towards
its target. That is an ask rate of 200bp improvement every quarter. While CYL has
multiple levers at its disposal, we still see this as a tall order.
…but ample levers for a gradual recovery:
While we see challenges to CYL’s FY17
margin target, we expect margin recovery to be more gradual and play out over time.
We model 50bp expansion each year in FY17/18. Upside risk to our margin estimates
could come from sharper uptick in Engineering segment’s utilization. We have cut our
earnings estimates by 3%/1% for FY17/18, contributed by higher revenue expectation
from Rangsons but lower overall company margins. Revenue visibility suggests CYL’s
turnaround on that front is playing out on expected lines, and over the longer term it
remains well placed to address opportunities in the Engineering and Defense
segments. Our price target of INR550 discounts FY18E earnings by 13x. Maintain Buy.
Financials & Valuations (INR b)
Y/E Mar
2016 2017E 2018E
Net Sales
31.0
35.8
41.6
EBITDA
4.2
5.1
6.1
PAT
3.3
4.0
4.7
EPS (INR)
30.7
35.5
42.2
Gr. (%)
-1.9
15.5
19.0
BV/Sh (INR)
186.6 211.5 241.0
RoE (%)
16.5
16.8
17.5
RoCE (%)
14.9
17.1
18.3
P/E (x)
15.7
13.6
11.4
P/BV (x)
2.6
2.3
2.0
Estimate change
TP change
Rating change
Quarterly Performance (Consolidated)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Sagar Lele
(Sagar.Lele@MotilalOswal.com); +91 22 3982 5585
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 3982 5424

Cyient
4QFY16:
Organic growth revival commences
CYL’s 4QFY16 revenues at USD121m grew 2.2% QoQ v/s est. of 2.5% QoQ. CC
revenue growth was 2.6% QoQ, implying a hit of 40bp because of cross currency
movements.
In Rupee terms, revenues were INR8.2b, +4.4% QoQ, compared to our estimate
of +4.8% QoQ.
Exhibit 1: Organic revenue growth of 2.6% QoQ CC largely in line
Revenue (USDm)
6.5
0.1
86
1.9
88
93
3.3
7.8
6.6
3.5
2.4
117
114
(2.6)
3.6
-
118
118
2.2
121
Growth (QoQ, %)
96
104
111
115
Source: Company, MOSL
The Engineering business grew by 2.5% QoQ, DNO declined by 1.3% and Product
Realization grew by 14% QoQ.
During the quarter, on account of lumpy sales in license revenue, Softential saw
a decline of ~60% QoQ to ~USD2.1m (from USD5.4m in the previous quarter).
Excluding Softential, DNO revenue grew by 8% QoQ in USD terms.
This signifies an operational organic pick-up in both Engineering and DNO, as
was anticipated to begin in the quarter.
Exhibit 2: Growth by segments (in USDm)
Engineering
DNO
Softential
DNO (ex. Softential)
Product Realization
4QFY16
69.0
39.4
2.1
37.3
12.1
3QFY16
67.3
39.9
5.4
34.5
10.7
QoQ (%)
2.5
(1.3)
(61.1)
8.1
13.8
4QFY15
66.9
40.5
5.5
35.0
9.2
YoY (%)
3.3
(2.7)
(61.8)
6.6
32.2
Source: MOSL, Company
EBITDA margin declined by 110bp QoQ to 13% against our expectation of 130bp
expansion.
Margins disappointed on account of lower revenue from Softential (which has a
higher-than-company-average EBITDA margin), change in mix and one-offs.
Exhibit 3: Margin walk for 4Q
Higher billing days
Headwind from onsite increase
Lower Softential revenue, mix and one-offs
Better performance in Rangsons
Impact
100
-110
-150
25
Source: MOSL, Company
21 April 2016
2

Cyient
Exhibit 4: EBITDA margin declined by 110bp QoQ
EBITDA margin (%)
Onsite revenue (% of total)
55.2
56.7
56.1
56.3
56.6
59.3
51.7
49.7
19.8
49.1
17.5
50.7
17.2
52.2
53.5
16.6
14.1
16.1
16.3
12.3
12.6
15.1
14.1
13.0
Source: Company, MOSL
Exhibit 5: Scope for improvement in Engineering utilization
Utilization (Engineering)
83.0
80.0
81.0
81.0
76.3
80.6
75.2
72.4
Utilization (DNO)
78.2
78.9
80.4
80.0
78.0
66.0
68.0
71.0
71.0
72.3
70.7
70.9
72.5
73.3
72.9
66.1
Source: Company, MOSL
Adjusted PAT for the quarter was INR844m, -2.8% QoQ, compared to our
estimate of INR1,010m, 16.3% QoQ. The miss was largely led by the margin
disappointment.
Reported PAT was at INR659m and included a negative impact of [1]
Reassessment of depreciation for the full year on account of salvage value and
residual life (INR56m), [2] Foreign exchange impact on Other Income (INR41m)
and [3] Retrospective change in bonus at impact during the quarter (INR87m).
Guidance: Double digit revenue growth, margin improvement for FY17
CYL guided for double digit revenue growth in FY17 in the core business (against
1% decline in FY16).
Rangsons reported revenue of USD39m in FY16, compared to USD67m in FY15.
The management guided for >50% growth in this business.
Margins are guided to improve by 150bp (versus 100bp decline in FY16). The
factors that lead to this guidance are: [1] Restoration of historical margins for
Softential and improved onsite margins (100-150bp), [2] Operational
improvements in the form of utilization, higher offshoring and pyramid
rationalization (50-100bp each) and [3] Better SG&A management and
absorption of net investments (75-100bp).
The headwinds for margins in FY17 would be a wage hike impact of ~200bp and
higher mix of DLM that would lead to a dilution of 75-100bp.
21 April 2016
3

Cyient
Segmental
performance: Led down by volatility in Softential
In constant currency CYL saw revenue growth of 2.6% QoQ. Growth in
Engineering, DNO (excluding Softential) and Product Realization was strong,
signifying operational improvement.
Exhibit 6: Strong growth in all segments barring Softential
Engineering
DNO
Product Realization
4QFY16
69.0
39.4
12.1
3QFY16
67.3
39.9
10.7
QoQ (%)
2.5
(1.3)
13.8
4QFY15
66.9
40.5
9.2
YoY (%)
3.3
(2.7)
32.2
Source: Company, MOSL
Among Verticals, growth was largely driven by Aerospace (4.1% QoQ),
Semiconductor (3.2% QoQ), Medical & electronics (14.4% QoQ) and Commercial
and Geospatial (34.5% QoQ).
Exhibit 7: Strong growth in Aerospace, Medical and Geospatial
Aerospace
Transportation
Off highway products
Semiconductor
Medical & electronics
Utilities
Communications
Energy & natural resources
Commercial and geospatial
Others
4QFY16
42.3
10.9
4.9
4.8
1.8
8.3
19.1
6.3
10.0
0.3
3QFY16
40.6
11.0
5.2
4.6
1.6
9.5
20.9
6.5
7.4
0.4
QoQ (%)
4.1
(1.1)
(5.4)
3.2
14.4
(12.9)
(8.5)
(2.5)
34.5
(24.3)
4QFY15
37.3
11.3
5.4
6.1
1.6
11.9
17.7
7.6
8.4
0.9
YoY (%)
13.3
(3.4)
(9.5)
(21.0)
13.9
(30.6)
7.9
(16.7)
18.6
(62.3)
Source: Company, MOSL
Among geographies, growth in Americas was led down by the decline in
Softential, and Utilities. Growth in Europe (10.9% QoQ) was driven by growth in
Commercial and geospatial, and APAC (9.3% QoQ) by growth in
Communications.
Exhibit 8: Europe and APAC drove growth
Americas
Europe
Asia Pacific
4QFY16
65.5
27.7
15.5
3QFY16
68.5
25.0
14.2
QoQ (%)
(4.5)
10.9
9.3
4QFY15
68.9
27.9
11.4
YoY (%)
(5.0)
(0.7)
36.9
Source: Company, MOSL
Announced reorganization to aid strategy execution
In order to align the organization to execute its S3 strategy and 2020 aspirations.
The management team has been reorganized into industry-focused business
units (BUs).
In accordance to this, the 8 BUs would be: [1] Aerospace & Defense, [2] Rail
Transportation, [3] Communications, [4] Medical & Healthcare, [5] Utilities &
Geospatial, [6] Semiconductor, [7] Industrial, Energy and Natural Resources and
[8] Design-Led Manufacturing.
The BUs will be supported by 5 Enabling Units (EUs): [1] Finance, [2] Corporate
Strategy, [3] Marketing, [4] Human Resources and [5] Business Excellence.
4
21 April 2016

Cyient
Exhibit 9: New organization structure
Source: Company, MOSL
Takeaways from Management Commentary
Outlook for core business:
CYL is much better placed this year, with the absence
of client-specific issues. This gives the company confidence of achieving double
digit growth in the core business next year, compared to the 1% decline seen in
FY16. Growth is expected to be well spread-out during the year with each
quarter clocking 3-4% QoQ growth.
Aerospace:
FY17 looks good as civil airline deliveries have been strong. 40% of
the work CYL is involved in is around manufacturing, repair engineering and
overhaul. This bodes well given current trends. Moreover, the outlook for the
largest client remains robust, cementing confidence going ahead.
Industrial, Energy and Natural Resources:
The market has challenges in the
verticals of Oil & Gas and mining. The business unit is expected to be muted in
FY17 largely due to macroeconomic challenges.
Rail transportation:
Growth is being driven by new infrastructure projects and
refurbishment of signaling. Growth in large customers, and the opening of the
delivery centre in Prague are expected to bode well in the coming year.
Medical technology and healthcare:
Although it’s a nascent vertical, CYL sees
great opportunity in the vertical, and has already started working with some of
the top OEMs in the space.
Semiconductor:
FY16 was subdued on account of challenges faced in IBM, which
got acquired by GlobalFoundaries. Although the decline has been arrested, the
global semiconductor market is expected to grow at a modest pace, leading to
muted expectations for CYL.
Utilities and Geospatial:
Strong order pipeline, and the bounce-back of revenue
growth from the North American Utilities client are expected to drive strong
growth double-digit growth in the next year.
Communications:
The Australian customer in communications has scaled up to
become CYL’s third largest customer, and there is more room for growth given
the broadband penetration spend of Australia.
21 April 2016
5

Cyient
Design-Led Manufacturing:
Expecting strong growth in DLM – to the tune of
>50% in FY17. There is ample visibility in this area given an existing order
backlog of USD39m and committed revenue of USD15m.
Focus on margin improvement:
Hiring is expected to not be in tandem to
revenue growth expectations in FY17. Although the revenue growth guidance is
of double-digits, net additions are expected to be ~700. Most of the revenue
growth is expected to be driven by improvement in utilization and productivity.
Change in estimates factor in margin miss in 4Q
We have increased our revenue estimates for FY17/18E by 0.7/0.5% to factor in
higher visibility in the core business (which has started to play out this quarter
onwards) and in DLM (led by order backlog).
Consequently, we expect core revenue growth in FY17/18 of 9/13% and in DLM
of 41/9%.
The margin miss during the quarter was led by Softential and one-offs.
Nonetheless, this has led us to cut our estimates since a 13% exit operating
margin and wage hike impact in 1Q would effectively mean a starting point of
~12% for the upward journey. Hence, despite ample levers in place, we think
FY17 margin expansion of 150bp would be a tough ask.
However, given revival in revenue growth and sufficient levers at disposal, we
model 50bp expansion for FY17/18 each.
We have cut our earnings estimates by 3%/1% for FY17/18E. There are also
minor adjustments made in tax rates (due to continuous improvement because
of a focus on SEZ deployment) and forex gain (due to favourable hedge rates).
Exhibit 10: Change in estimates
Revised
FY16E FY17E FY18E
472
527
594
5.7 11.6 12.7
13.7 14.2 14.7
31
35
42
FY16E
473
5.7
14.3
32
Earlier
FY17E
523
10.7
14.8
37
FY18E
591
12.9
15.8
42
Change
FY16E FY17E FY18E
-0.1% 0.7% 0.5%
-9bp 83bp -16bp
-63bp -57bp -108bp
-4.6% -3.1% -0.7%
USD Revenue - m
Growth (%)
EBITDA Margin (%)
EPS - INR
Source: Company, MOSL
Valuation and view – Revival is organic business playing out as expected
CYL is a market leader in Engineering Services in the Aerospace and Railways
verticals, which constitute to 50% of its total revenue. Its relationships with
marquee clients, years of experience, and partnering with customers in critical
parts of their development programs have helped CYL sustain its leadership
position.
To further boost its positioning, CYL is geared to tap the potential in three areas
that are all at the cusp of a multi-year growth trajectory: [1] Electronic
Manufacturing Services, [2] MRO, and [3] Defense. Together, these three areas
increase its addressable market by ~12x (from USD1b in Aerospace Engineering
Outsourcing to USD12.3b in the three additional areas).
This should help turn around growth performance going ahead, following two
years of subdued numbers caused by client-specific headwinds. With most
issues behind, we expect revenue growth to bounce back going ahead, leading
to 11% CAGR over FY16-18, in the core business, and 12% in overall revenue.
6
21 April 2016

Cyient
Revival of growth has showed up in 4QFY16 performance, and validates the
expectation of continued improvement over the course of FY17.
Margins declined by ~400bp in FY15, thanks to pricing pressure, change in
business mix, reinvestments in the restructuring, and acquisition of lower
margin business; and a further 100bp in FY16. While we see challenges to CYL’s
FY17 margin target of 150bp expansion, we expect margin recovery to be more
gradual and play out over time – expansion of 100bp over FY16-18 on the back
of revenue growth revival, turnaround in Rangsons, higher offshoring, improved
utilization, and lower subcontracting costs. Upside risk to our margin estimates
could come from sharper uptick in Engineering segment’s utilization.
Although the margin recovery story seems to be taking longer than earlier
anticipated, revenue visibility suggests CYL’s turnaround on that front is playing
out on expected lines, and over the longer term it remains well placed to
address opportunities in the Engineering and Defense segments. Our 1-year
target price of INR550 discounts forward earnings by 13x, at a discount to peers
such as PSYS and MTCL (which demonstrate potential in newer services), but at
a premium to peers such as MPHL, KPIT, and NITEC (given strong competitive
positioning, well defined niche and strategy to drive next leg of growth).
Key triggers
Continued momentum in organic revenue growth
Revival in Softential and improved outlook for Rangsons
Uptick in margins led by operational efficiency
Key risk factors
Prolonged client specific issues leading to a pause in recovery
Dampening of outlook in Rangsons hampering confidence in S3 strategy
Delayed recovery in margins
Exhibit 12: 1-year forward PB band
Avg(x)
24.1
Min(x)
4.0
3.0
PB (x)
Peak(x)
Avg(x)
Min(x)
3.7
Exhibit 11: 1-year forward PE band
30
25
20
15
10
5
0
2.8
11.7
12.2
PE (x)
Peak(x)
2.0
1.0
0.0
0.5
1.9
2.1
Source:
Source:
21 April 2016
7

Cyient
Story in charts
Exhibit 13: Expect revenue growth to pick-up
Revenue (USDm)
23.0
527
447
472
5.7
5.3
363
FY14
11.6
12.7
Growth (YoY, %)
594
Exhibit 14: S3 strategy to propel positioning
FY15
FY16
FY17E
FY18E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 15: Most client specific issues now behind
10.7
-3.1
-17.2
-19.2
0.5
FY16 Growth (YoY, %)
9.8
6.4
Exhibit 16: Margin recovery expected over FY7-18E…
EBITDA margin (%)
18.2
18.6
-13.7 -17.6
-36.0
14.7
13.7
14.2
14.7
FY13
Source: Company, MOSL
FY14
FY15
FY16
FY17E
FY18E
Source: Company, MOSL
Exhibit 17: …led by utilization
Utilisation: Engineering (%)
84 85 83
80
83
80 81 81
76 78
Utilisation: DNO (%)
81
75
80 80
78 79
Exhibit 18: And reduction in subcontracting, apart from
other levers
Subcontracting costs (% of revenue)
8.1
4.7
6.1
9.1
7.0
6.7
6.8
8.5
7.9
3.2
71
73
71
68 66 68
73 73
71 71 72 71 71 72 73
66
3.1
Source: Company, MOSL
Source: Company, MOSL
21 April 2016
8

Cyient
Operating metrics
Exhibit 19: Operating metrics
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16
Geographic Mix - %
Americas
Europe
Asia Pacific
Business Units - %
Engineering
DNO
Others
Vertical Mix - %
Aerospace
Transportation
Off highway products
Semiconductor
Medical & electronics
Utilities
Communications
Energy & natural resources
Commercial and geospatial
Others
Revenue Mix - %
Onsite
Offshore
Utilization - %
Engineering
DNO
Overall
Client Buckets
USD1m+
USD5m+
USD10m+
USD20m+
Client Contribution - %
Top 5
Top 10
Product Realisation Business
Geographic Mix - %
Americas
EMEA & India
Asia Pacific
Vertical Mix - %
Aerospace and Defence
Industrial
Medical
Communication
Others
56.1
28.3
15.6
63.0
35.6
1.4
34.4
11.4
5.9
5.2
1.5
10.2
13.6
7.4
8.9
1.5
49.7
50.3
68.0
80.0
74.5
56
17
7
4
35.3
48.2
56.5
29.2
14.3
63.1
35.7
1.2
33.2
12.5
5.4
6.1
1.5
11.0
12.7
7.0
9.3
1.3
49.1
50.9
71.0
81.0
76.4
54
17
6
3
35.8
49.8
58.0
28.9
13.1
64.1
34.8
1.1
32.8
11.8
5.2
5.9
1.7
10.6
14.6
6.8
9.6
1.0
50.7
49.3
71.0
81.0
76.3
54
19
8
4
35.9
50.7
60.9
29.3
9.8
62.2
36.9
0.9
33.9
11.2
4.8
5.8
1.7
10.1
14.2
7.2
10.2
0.9
52.2
47.8
72.3
76.3
74.4
55
19
8
3
36.2
51.3
63.9
27.4
8.7
60.8
38.3
0.9
33.3
10.4
5.1
6.1
1.3
10.9
15.4
7.1
9.4
1.0
53.5
46.5
70.7
78.0
74.7
54
20
9
3
34.4
48.7
65.0
26.8
8.2
57.5
41.6
0.9
31.2
10.1
4.5
5.9
1.2
12.1
18.3
6.9
8.8
1.0
55.2
44.8
70.9
80.6
76.0
56
20
9
4
40.3
50.1
63.7
25.8
10.5
61.8
37.4
0.8
34.5
10.4
5.0
5.6
1.5
11.0
16.4
7.0
7.8
0.8
56.7
43.3
72.4
75.2
73.8
55
20
8
4
34.9
49.5
64.0
24.0
12.0
62.8
36.4
0.8
35.8
10.4
5.2
5.6
1.4
10.6
16.2
6.6
7.3
0.9
56.1
43.9
72.5
78.2
75.4
59
22
8
4
35.7
51.2
64.1
24.1
11.8
62.8
36.4
0.8
36.2
10.6
5.2
5.3
1.5
9.1
18.4
6.2
6.7
0.8
56.3
43.7
73.3
78.9
76.1
60
21
9
4
35.3
50.1
63.6.
23.2
13.2
62.5
37.0
0.5
37.7
10.2
4.8
4.3
1.5
8.8
19.4
6.0
6.9
0.4
56.6
43.4
72.9
80.4
76.7
60
19
10
2
34.7
49.4
60.2
25.5
14.3
63.5
36.2
0.3
38.9
10.0
4.5
4.4
1.7
7.6
17.6
5.8
9.2
0.3
59.3
40.7
66.1
80.0
73.3
62
20
11
2
35.7
51.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29.2
15.5
55.3
58.2
24.7
13.1
2.6
1.4
44.6
37.0
18.4
19.0
39.0
20.3
15.3
6.4
23.5
28.7
47.8
49.5
22.4
11.0
16.1
1.1
22.3
51.0
26.7
51.3
20.7
11.6
15.0
1.4
10.5
81.0
8.5
29.7
21.0
10.1
26.2
13.0
Source: MOSL, Company
21 April 2016
9

Cyient
Financials and Valuations
Key assumption
2011
2012
2013
2014
2015
2016
2017E
2018E
INR/USD
20: Operating metrics
45.6
48.0
54.3
60.7
61.2
65.6
68.0
70.0
Exhibit
Rate
Revenues (USD m)
261
324
363
447
527
594
2QFY14 3QFY14 4QFY14 1QFY15
345
2QFY15 3QFY15 4QFY15 1QFY16
472
2QFY16 3QFY16 4QFY16
Offshore Revenue
%
50.5
49.7
45.6
43.4
44.6
46.4
Geographic Mix -
(%)
Total Headcount
8,693
9,797
63.9
11,265
11,569
64.1
12,969
Americas
56.1
8,079
56.5
58.0
60.9
65.0
11,529
63.7
64.0
63.6.
14,469
60.2
Per Capita Productivity (USD)
35,205
27.4
32,250
40,807
24.1
40,612
Europe
28.3
32,269
29.2
37,248
28.9
29.3
26.8
38,757
25.8
24.0
23.2
41,041
25.5
Operating metrics
Asia Pacific
Income Statement
15.6
14.3
13.1
2012
64.1
15,530
34.8
30.7
1.1
2,689
17.3
494
32.8
2,195
11.8
9.8
2013
62.2
18,731
36.9
20.6
0.9
3,416
18.2
33.9
635
2,780
11.2
8.7
8.2
10.5
2015
61.8
27,359
37.4
24.0
0.8
4,014
14.7
713
34.5
3,301
10.4
12.0
2016
62.8
30,955
36.4
13.1
0.8
4,247
13.7
893
35.8
3,354
10.4
11.8
Business Units - %
Y/E Mar
Engineering
Net Sales
DNO
Change (%)
Others
EBITDA
Vertical Mix - %
(%)
EBITDA Margin
Depreciation
Aerospace
EBIT
Transportation
2011
63.0
11,880
63.1
35.6
24.6
35.7
1.4
1,796
1.2
15.1
34.4
486
33.2
11.4
1,310
12.5
2014
60.8
22,064
57.5
38.3
17.8
41.6
0.9
4,101
0.9
18.6
33.3
720
31.2
10.4
3,381
10.1
2017E
62.8
35,816
62.5
36.4
15.7
37.0
0.8
5,083
0.5
14.2
36.2
821
37.7
10.6
4,262
10.2
13.2
Million)
(INR
14.3
2018E
63.5
41,567
36.2
16.1
0.3
6,123
14.7
934
38.9
5,188
10.0
Off highway products
Interest
Semiconductor
Other Income
Medical & electronics
Extraordinary items
Utilities
PBT
Communications
Tax
Energy & natural resources
Tax Rate (%)
Commercial and geospatial
Min. Int. & Assoc. Share
Others
Reported PAT
Revenue Mix - %
Adjusted PAT
Onsite
Change (%)
Offshore
Utilization - %
Balance Sheet
Y/E Mar
Engineering
Share Capital
DNO
Reserves
Overall
Net Worth
Client Buckets
Debt
USD1m+
Deferred Tax
USD5m+
Total Capital Employed
USD10m+
Gross Fixed Assets
USD20m+
Less: Acc Depreciation
Client Contribution - %
Net Fixed Assets
Top 5
Capital WIP
Top 10
Investments
Product Realisation Business
Current Assets
Geographic Mix - %
Inventory
Americas
Debtors
EMEA & India
Cash & Bank
Asia Pacific
Others
Loans & Adv,
Vertical Mix - %
Curr Liabs & Provns
Aerospace and Defence
Curr. Liabilities
Industrial
Provisions
Medical
Net Current Assets
Communication
Total Assets
5.9
5.4
10
6.1
5.2
1.5
272
1.5
0
10.2
11.0
13.6
1,572
12.7
270
7.0
7.4
8.9
17.2
9.3
1.5
-71
1.3
1,373
1,373
49.7
49.1
-19.6
5.2
7
5.9
175
1.7
0
10.6
2,363
14.6
835
6.8
35.3
9.6
-100
1.0
1,628
1,628
50.7
18.6
4.8
5.1
4.5
29
5.9
5.8
12
6.1
1.7
398
1.3
187
1.2
0
10.1
0
10.9
12.1
3,166
15.4
3,538
14.2
18.3
967
7.1
1,030
6.9
7.2
30.5
9.4
29.1
8.8
10.2
-129
0.9
1.0
-152
1.0
2,329
2,660
2,329
2,660
52.2
53.5
55.2
43.0
14.2
5.0
80
5.6
1,236
1.5
0
11.0
4,457
16.4
1,096
7.0
24.6
7.8
-150
0.8
3,511
3,511
56.7
32.0
5.2
5.2
4.8
199
5.3
234
4.3
5.6
1,065
1.5
1,147
1.5
1.4
0
8.8
10.6
0
9.1
4,220
18.4
5,175
16.2
19.4
986
6.2
1,242
6.0
6.6
23.4
6.7
24.0
6.9
7.3
-115
0.9
0.8
-48
0.4
3,349
3,981
3,349
3,981
56.1
56.3
56.6
-4.6
18.9
4.5
230
4.4
1,209
1.7
0
7.6
6,168
17.6
1,480
5.8
24.0
9.2
-48
0.3
4,736
4,736
59.3
19.0
50.3
50.9
49.3
47.8
46.5
44.8
43.3
43.9
68.0
2011
71.0
80.0
556
81.0
74.5
9,737
76.4
Others
10,293
56
451
54
0
17
17
7
10,744
6
4
5,782
3
2,933
35.3
2,848
35.8
74
48.2
49.8
334
8,597
0
-
-
2,567
-
-
3,477
-
2,552
-
1,109
-
836
-
-
273
-
-
7,487
-
-
10,744
-
-
-
2012
71.0
557
81.0
11,018
76.3
11,575
486
54
0
19
12,060
8
6,404
4
3,345
3,059
35.9
198
50.7
222
10,558
0
-
3,675
-
4,496
-
2,387
1,976
-
1,499
-
477
-
8,581
-
12,060
2013
70.7
2014
72.3
70.9
76.3
558
78.0
560
80.6
12,667
74.7
15,325
74.4
76.0
-
13,225
15,885
55
426
54
433
56
0
20
19
0
20
13,651
8
9
16,318
9
7,301
3
3
7,976
4
3,973
4,634
3,328
36.2
34.4
3,342
40.3
228
71
51.3
48.7
50.1
610
400
11,934
15,652
0
0
-
-
-
4,007
4,800
-
-
-
4,939
6,886
-
-
3,966
-
2,988
2,449
3,147
-
-
2,523
-
1,964
-
484
-
625
-
-
-
12,505
-
9,486
-
-
16,318
-
13,651
-
-
-
2015
72.4
562
75.2
17,879
73.8
18,441
1,103
55
0
20
19,666
8
9,318
4
5,696
3,622
34.9
96
49.5
336
21,732
606
29.2
5,336
15.5
5,704
55.3
10,086
6,120
58.2
5,164
24.7
956
13.1
15,612
2.6
19,666
43.4
40.7
(INR Million)
2016
73.3
2017E
72.5
72.9
2018E
66.1
562
78.9
562
562
78.2
80.4
80.0
20,382
76.1
23,168
75.4
76.7
26,483
73.3
20,944
1,504
59
22
0
22,448
8
10,618
4
6,589
4,029
35.7
70
51.2
800
23,596
819
44.6
6,191
37.0
7,716
18.4
8,870
6,138
19.0
5,538
39.0
600
20.3
17,459
15.3
22,358
23,731
60
1,233
60
0
19
21
24,964
10
9
11,618
2
4
7,410
35.3
4,208
34.7
70
50.1
49.4
1,000
26,474
991
23.5
22.3
7,163
28.7
51.0
8,910
47.8
9,409
26.7
6,879
49.5
6,179
51.3
22.4
700
20.7
11.0
11.6
19,595
16.1
15.0
24,873
27,046
1,333
62
0
20
28,378
11
12,618
2
8,344
4,274
35.7
70
51.1
1,200
30,439
1,139
10.5
8,313
81.0
10,993
8.5
9,993
7,695
29.7
6,895
21.0
800
10.1
22,744
26.2
28,288
43.7
1.4
6.4
1.1
1.4
13.0
Source: MOSL, Company
21 April 2016
10

Cyient
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Fixed Asset Turnover (x)
Debtors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2011
12.5
34.2
92.4
1.2
10.0
2012
14.5
42.4
103.9
2.5
17.3
2013
20.7
49.7
118.3
4.5
21.7
2014
23.7
64.9
141.5
5.0
21.0
20.4
7.4
3.4
2.1
11.5
1.0
13.6
12.2
13.9
18.2
17.5
20.4
16.7
20.7
2015
31.3
53.8
164.3
8.0
25.6
15.4
9.0
2.9
1.8
12.3
1.7
19.0
16.8
2016
30.7
75.9
186.6
7.0
22.8
15.7
6.4
2.6
1.5
11.2
1.4
16.5
14.9
2017E
35.5
88.3
211.5
10.6
30.0
13.6
5.5
2.3
1.3
9.0
2.2
16.8
17.1
2018E
42.2
108.6
241.0
12.7
30.0
11.4
4.4
2.0
1.0
7.1
2.6
17.5
18.3
1.0
89
0
-0.3
1.1
100
0
-0.3
1.2
95
0
-0.3
1.1
99
0
-0.4
1.1
91
0
-0.2
1.1
91
0
-0.3
1.1
91
0
-0.3
1.2
91
0
-0.4
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2011
1,796
-89
-689
0
1,018
-647
371
878
0
231
24
-40
-91
-107
1,142
2,336
3,477
2012
2,689
-682
-749
0
1,259
-790
469
721
0
-69
17
14
-217
-187
1,003
3,492
4,496
2013
3,416
-1,018
-799
0
1,599
-922
676
-13
0
-935
29
-27
-254
-252
412
4,528
4,939
2014
4,101
-1,160
-669
0
2,272
-761
1,511
585
0
-176
52
41
-242
-149
1,947
4,939
6,886
2015
4,014
-731
335
0
3,617
-803
2,814
-4,479
0
-5,282
66
399
17
482
-1,183
6,886
5,704
2016
4,247
-746
495
0
3,995
-1,274
2,722
232
0
-1,042
1
1
-943
-941
2,013
5,704
7,716
2017E
5,083
-907
-1,214
0
2,962
-1,000
1,962
659
0
-341
0
-234
-1,194
-1,428
1,194
7,716
8,910
(INR Million)
2018E
6,123
-1,205
-966
0
3,952
-1,000
2,952
781
0
-219
0
-230
-1,421
-1,650
2,083
8,910
10,993
21 April 2016
11

Cyient
Corporate profile
Company description
Exhibit 1: Sensex rebased
Cyient (Bloomberg: CYL) is a provider of Engineering
Services, and Data, Network and Operation Services
in the fields of Aerospace, Consumer, Energy,
Medical, Oil & Gas, Mining, Heavy Equipment, Hi-
tech, Rail Transportation, Telecom, and Utilities. Its
solutions include product development and life
cycle support, process and network engineering,
along with data transformation and analytics.
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Dec-15
22.2
25.5
39.1
13.3
Promoter
DII
FII
Others
Sep-15
22.2
11.1
38.7
28.0
Dec-14
22.2
13.4
35.8
28.6
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Carrier Interational Mauritius Ltd
First Carlyle Ventures Mauritius
Oppenheimer International Small Company
Fund
Deutsche Securities Mauritius Ltd.
ICICI Prudential Life Insurance Company Ltd
% Holding
13.6
9.9
4.9
4.9
4.3
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
B V R Mohan Reddy
Krishna Bodanapu
Sudheendhra Putty
Designation
Executive Chairman
Managing Director &
CEO
Company Secretary
Exhibit 5: Directors
Name
Andrea Bierce
K Ramachandran
Thomas W Prete
Jayanth Sabnis
Name
Harsh Manglik
M M Murugappan
Alan De Taeye
Source: Capitaline
Exhibit 6: Auditors
Name
Delloite Haskins & Sells
Ernst & Young LLP
G P Associates
Internal
Tax
Source: Capitaline
Type
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
35.5
42.2
Consensus
forecast
31.7
35.7
Variation (%)
12.0
18.2
Source: Bloomberg
21 April 2016
12

Cyient
NOTES
21 April 2016
13

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Cyient
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CYIENT
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21 April 2016
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