Cyient shares zoom 10% to record high in trade

Cyient shares soared 10 per cent in Friday's trade to reach a record-breaking high, taking their winning streak to a third day amid high volumes. The stock has been on the rise since the company's final dividend date has been set. Cyient was able to outperform its peers in the tier 2 IT market in the fourth quarter, resulting in a constant currency revenue growth of 6.6 per cent. While announcing its quarterly results in April, Cyient gave a positive guidance, expecting FY 24 consolidated Services revenue growth to be in the range of 15 - 20 percent YoY in constant currency CC terms.

Cyient expects the average EBIT margin to increase 100 - 200 basis points on the YoY basis to be 100 - 200 basis points. The scrip is up 28 per cent in the last month and 83 per cent year-to-date.

On Friday, the stock surged 9.92 per cent to a record high of 1507. 70 on bse. This is the third consecutive day when the stock has seen a rise.

The IT firm has set a date for final dividend and evoting in connection with the annual general meeting of the company scheduled to be held on June 21.

The company has also been informed that the board of directors of the company have recommended a final dividend of Rs 16 per equity share of 320 per cent on par value of 5.00 per share for the financial year ended 31 March 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 the AGM, Cyient said.

The IT firm reported a five-year increase in net profit in March compared to the same quarter last year of 154.20 crore. Normalized profit rose 8.2 per cent YoY to Rs 176 crore, while revenue for the quarter came in at Rs 1,751 per cent. The IT firm said it plans to raise 40 billion rupees in the second quarter of this year. In the same quarter last year, it recorded 20 crore sales, up from the same quarter last year. There was a significant win in revenue and margins, said analysts.