Cyient DLM reported a 5.4% year-on-year increase in net profit for Q2FY25, reaching ₹15.5 crore. The company’s revenue surged by 33.4% YoY to ₹389.4 crore. However, following the announcement, shares fell by 6% to ₹656.70 on Tuesday.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 34.4% YoY to ₹31.6 crore, with EBITDA margins increasing slightly by 5 basis points to 8.1%. In contrast, the net profit margin declined by 105 basis points to 4%.
Cyient DLM attributed the rise in employee costs and other expenses to planned investments in selling and administrative expenses, as well as manufacturing overheads. The defense segment saw significant growth of 82% YoY, while the aerospace segment grew by 20%. However, revenue from the industrial segment dropped by 55% due to reduced demand from a major customer.
The printed circuit board assembly (PCBA) business expanded across various sectors, achieving a 57% YoY growth, while the box build segment grew by 17%. Additionally, exports increased as demand from aerospace and defense customers outside India rose.
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In Q2FY25, Cyient DLM acquired Altek for an initial payment of $23.4 million, with a total potential payout of $29.2 million. The company anticipates this acquisition will generate double-digit EBITDA and a return on capital employed exceeding 15%, with revenue impacts expected to begin in Q3FY25. Cyient DLM also aims to enter expanding industries such as electric vehicles.