The numbers tell that Cyient's growth is outstanding
30-04-2015 • About Cyient (
$CYIENT) • By InTwits
Cyient is a fast-growing stock in IT Consulting & Software industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Cyient showed fast growth in the last financial year. The company's revenue surged on 24.0% in FY2015. Together with revenue growth Cyient also managed to keep EBITDA growth. EBITDA grew -2.32% for the same period.
In the longer period Cyient showed fast revenue growth of 20.8% from FY2012 to FY2015 annually. EBITDA surged on 14.2% from FY2012 to FY2015 annually.
Cyient ($CYIENT) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 11,880 | 15,530 | 18,731 | 22,064 | 27,359 |
|---|
| Revenue growth, % | | 30.7% | 20.6% | 17.8% | 24.0% |
|---|
| SG&A, % | | | | | 0.0207% |
|---|
| EBITDA | 1,799 | 2,691 | 3,424 | 4,104 | 4,009 |
|---|
| EBITDA growth, % | | 49.6% | 27.2% | 19.9% | -2.3% |
|---|
| EBITDA margin, % | 15.1% | 17.3% | 18.3% | 18.6% | 14.7% |
|---|
| Net Income | 1,397 | 1,614 | 2,311 | 2,660 | 3,532 |
|---|
| Net Income margin, % | 11.8% | 10.4% | 12.3% | 12.1% | 12.9% |
|---|
| |
| CAPEX | 648 | 804 | 722 | 766 | 818 |
|---|
| CAPEX/Revenue, % | 5.45% | 5.18% | 3.85% | 3.47% | 2.99% |
|---|
| Debt | 13 | 34 | 3 | 58 | 1,280 |
|---|
| Cash | 1,296 | 4,442 | 4,827 | 6,763 | 5,664 |
|---|
| Net Debt/EBITDA | -0.7x | -1.6x | -1.4x | -1.6x | -1.1x |
|---|
| |
| ROIC, % | 13.1% | 19.8% | 22.2% | 22.9% | 18.1% |
|---|
| ROE, % | 14.4% | 14.8% | 18.6% | 18.3% | 20.6% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 18.6% in FY2014 to 14.7% in FY2015. In the last 3 years EBITDA margin dropped on 2.60 pp from 17.3% in FY2012 to 14.7% in FY2015.
Cyient shows attractive ROIC at 18.1% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 19.8%. It's average ROIC for the last three years was 21.1%.
The company's Net Income margin increased on 0.800 pp from 12.1% to 12.9% in FY2015. In the last 3 years Cyient showed fast Net Income margin growth of 2.50 pp from 10.4% in FY2012 to 12.9% in FY2015.
Cyient operates at ROE of 20.6%. It's average ROE for the last three years was 19.2%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 2.99%. CAPEX/Revenue dropped on 2.19 pp from 5.18% in FY2012 to 2.99% in FY2015. Average CAPEX/Revenue for the last three years was 3.44%.
Leverage (Debt)
Having such a fast growth profile Cyient keeps negative net debt at -1.1x Net Debt/EBITDA. If we look for the longer period leverage surged on 0.54x from -1.64x in FY2012 to -1.09x in FY2015.
Management team
Krishna Bodanapu is a CEO of Cyient and Ajay Aggarwal is a CFO.
Peers in IT Consulting & Software
Below you can find Cyient benchmarking vs. other companies in IT Consulting & Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Tech Mahindra ($TECHM) | -85.8% | 6.8% | 25.2% | 174.0% | |
| Tata Consultancy Services ($TCS) | | 31.0% | 28.8% | 29.9% | 15.7% |
| Mindtree ($MINDTREE) | | 26.6% | 23.2% | 28.8% | 17.0% |
| Infinite Computer Solutions (India) ($INFINITE) | -57.9% | 19.5% | 31.7% | 24.6% | |
| Infosys ($INFY) | 20.9% | 22.7% | 19.6% | 24.2% | |
| |
|---|
| Median (21 companies) | -40.7% | 22.7% | 20.4% | 14.0% | 12.7% |
|---|
| Cyient ($CYIENT) | | 30.7% | 20.6% | 17.8% | 24.0% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Tata Consultancy Services ($TCS) | | | | 47.4% | 42.4% |
| Mindtree ($MINDTREE) | 32.8% | 31.5% | 36.2% | | 34.8% |
| Wipro ($WIPRO) | 31.5% | 29.2% | 30.4% | 32.0% | 31.6% |
| |
|---|
| Median (3 companies) | 34.7% | 32.7% | 36.2% | 35.9% | 34.8% |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Oracle Financial Services Software ($OFSS) | 37.4% | 35.3% | 35.2% | 37.4% | |
| Tata Consultancy Services ($TCS) | 29.9% | 29.5% | 28.6% | 30.7% | 26.1% |
| Infosys ($INFY) | 32.5% | 31.6% | 27.9% | 26.3% | |
| Wipro ($WIPRO) | 21.1% | 19.1% | 20.9% | 22.4% | 22.3% |
| Tech Mahindra ($TECHM) | 19.5% | 16.7% | 20.7% | 22.2% | |
| |
|---|
| Median (18 companies) | 18.0% | 15.1% | 16.5% | 18.3% | 19.4% |
|---|
| Cyient ($CYIENT) | 15.1% | 17.3% | 18.3% | 18.6% | 14.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Ramco Systems ($RAMCOSYS) | 16.4% | | 22.1% | 15.3% | 12.4% |
| Niit Technologies ($NIITTECH) | 4.1% | 5.9% | 4.6% | 6.1% | |
| Infosys ($INFY) | 4.7% | 4.9% | 5.2% | 5.5% | |
| Mindtree ($MINDTREE) | 5.6% | 2.5% | 4.5% | 5.0% | 5.6% |
| Tech Mahindra ($TECHM) | 3.0% | 5.4% | 2.6% | 5.0% | |
| |
|---|
| Median (17 companies) | 4.0% | 3.7% | 3.2% | 2.6% | 3.0% |
|---|
| Cyient ($CYIENT) | 5.5% | 5.2% | 3.9% | 3.5% | 3.0% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Tata Consultancy Services ($TCS) | 47.1% | 48.6% | 48.4% | 50.2% | 40.5% |
| Tech Mahindra ($TECHM) | 19.2% | 15.4% | 20.1% | 43.0% | |
| Geometric ($GEOMETRIC) | 19.6% | 29.9% | 46.4% | 41.1% | |
| Mindtree ($MINDTREE) | 14.9% | 24.9% | 34.6% | 36.2% | 32.0% |
| Cmc ($CMC) | 31.5% | 26.2% | 33.2% | 35.3% | 26.0% |
| |
|---|
| Median (30 companies) | 19.2% | 19.1% | 20.4% | 23.2% | 26.0% |
|---|
| Cyient ($CYIENT) | 13.1% | 19.8% | 22.2% | 22.9% | 18.1% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 3I Infotech ($3IINFOTECH) | 3.5x | 8.5x | 20.3x | 27.7x | |
| Ramco Systems ($RAMCOSYS) | 4.0x | 8.8x | | 27.6x | 4.2x |
| Starcom Information Technology ($STARCOM) | | | | 17.4x | |
| Onward Technologies ($ONWARDTEC) | 2.7x | 2.4x | 2.2x | 4.1x | |
| Kpit Technologies ($KPIT) | -0.7x | 0.3x | 0.5x | 0.7x | |
| |
|---|
| Median (23 companies) | -0.1x | -0.0x | -0.2x | -0.2x | -0.7x |
|---|
| Cyient ($CYIENT) | -0.7x | -1.6x | -1.4x | -1.6x | -1.1x |
