Cyient (CYL) Q4FY21 consolidated revenue growth of 4.7% QoQ in CC was in-line with our forecast. EBIT margin improvement of ~150bps QoQ to 12.6% was a beat to our forecast of 11.8%. Recurring EPS of Rs10.1, +16%/+47% QoQ/YoY was also a beat, said IDBI Capital in its report.

For FY22, CYL has guided for a double-digit YoY growth in services business and 20%+ growth for DLM. Further, it has guided for ~200bps YoY improvement in consolidated EBIT margin, higher than our expectation. CYL has appointed M M Murugappan as its Non-Executive Chairman.

Commenting on the result review, the broking firm said, "We factor Q4FY21 beat and strong FY22 guidance and increase our FY22/23 revenue forecast (in USD) by 2.1%/3.4% and EPS forecast by 7.9%/9.1%. We now forecast a revenue (USD)/EPS CAGR of 12.6%/21.5% over FY21-23E. We increase our TP to Rs 897 (vs. Rs 685 earlier), now based on PER of 18x (vs. 15x earlier) vs. 1-year forward PER range of 5.3x-20.4x in the last 5 years. Maintain BUY."

Shares of the company declined Rs 1.65, or 0.24%, to trade at  Rs 686.30.  The total volume of shares traded  was 12, 780 at the BSE (Friday, 11.18 a.m).

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