Hyderabad based Cyient plans to offload stakes in underperforming units this year

IT company Cyient is planning to offload stakes in its underperforming units this year, its Managing Director Krishna Bodanapu said while speaking to a news channel on January 24. The Hyderabad-based firm, which provides technology and engineering solutions to an array of Fortune-500 companies, is evaluating which units fit well with their portfolio, Bodanapu suggested.

"We are a bit complex and one of the objectives for this calendar year is to simplify things and divest out of businesses that do not make sense for us," he said during an interview with Bloomberg TV. The Cyient MD did not specify the units in which he is planning to reduce the stakes. He, however, pointed out that the firm had earlier sold its drone and IT services businesses.

According to Bodanapu, the company intends to raise fund for inorganic growth through its zero-debt status. He also noted that there is a "lot of runway for our business", adding that parts of their businesses "will start firing" in the period to come. Bodanapu's comments comes days after Cyient posted a posted a 38 percent jump in consolidated net profit at Rs 131.7 crore for December 2021 quarter.

Revenue from operations increased 13.3 per cent to Rs 1,183.4 crore during the quarter as compared to Rs 1,044.3 crore in the same period last fiscal year. Shares of Cyient were trading at Rs 925 a piece at around 3 pm on January 24, 3.5 percent lower as compared to the previous close.