Shares of Cyient took a significant hit on January 24, dropping more than 19% as a series of negative developments weighed heavily on the company. The IT firm’s disappointing Q3 performance and a drastic reduction in its FY25 revenue growth guidance added to investor concerns.
Cyient slashed its revenue growth forecast for FY25 to a decline of -2.7%, down from the previous expectation of flat growth. This revision, coupled with a 31.56% drop in net profit to Rs 127.7 crore in Q3 FY25, compounded the negative sentiment. The company’s revenue grew marginally by 0.5% sequentially, reaching Rs 1,909.8 crore.
Adding to the turmoil, CEO Karthikeyan Natarajan resigned, with promoter Krishna Bodanapu stepping in as the interim CEO. This leadership change, combined with the weak financials, prompted analysts to revise their earnings estimates and target prices for Cyient, further dampening investor sentiment.
Brokerage firm Nuvama Institutional Equities downgraded Cyient, cutting its FY25 and FY26 EPS estimates by 10.8% and 4.5%, respectively, while also reducing its target price to Rs 1,660. The firm retained a ‘sell’ call on the stock.
At 10:04 am, Cyient shares were trading at Rs 1,424.95 on the NSE. HDFC Securities also lowered its revenue and EPS estimates by 2% and 5%, respectively, citing slower growth and weaker margins as key factors.
