Shares of Cyient, a prominent technology services firm, made a notable rise in the stock market today, ending 3.10% higher at ₹1775.75 against the previous close of ₹1722.35 on the Bombay Stock Exchange (BSE). The upward movement was fueled by strong Q2 earnings, making Cyient a focal point for those looking to invest in stocks within the tech sector.
Steady growth in profit and revenue
Cyient's latest financial report showcased an encouraging 2.3% year-on-year increase in net profit, reaching ₹177 crore for the September 2024 quarter. Meanwhile, quarterly revenue stood at ₹1450 crore, with a modest quarter-on-quarter growth of 2.5% but a slight year-on-year decrease of 1.8%. The company's EBIT for Q2 reached ₹206 crore, contributing to an EBIT margin of 14.2%, reflecting steady operational efficiency—a factor that investors often consider when deciding to invest in stocks of companies within the technology services industry.
Dividend declaration adds value for investors
Alongside its earnings report, Cyient also announced an interim dividend of ₹12 per equity share, with a face value of ₹5 per share. The dividend's record date is November 6, 2024, adding a layer of appeal for investors seeking both growth and income. For those aiming to invest in stocks with attractive dividend policies, Cyient's announcement offers an incentive to secure consistent returns beyond capital gains.
Krishna Bodanapu, Executive Vice Chairman and Managing Director, attributed the positive Q2 results to Cyient's strategic growth initiatives, particularly in the Semiconductor business. This segment is set to benefit from Cyient's partial divestment in Cyient DLM, enabling greater financial flexibility for organic and inorganic growth. This approach aligns well with investor interests in innovation-driven technology firms.
Key takeaways
For potential investors, Cyient's recent developments offer an appealing opportunity to invest in stocks that promise both growth and steady returns.
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