Cyient DLM makes a stellar debut on bourses as growth prospects remain bullish

Bengaluru, 10 July Cyient DLM, a subsidiary of software services firm Cyient, made a strong debut on the exchanges on Monday as the stock was listed at Rs 403 on NSE, which is a premium of 52 per cent over its IPO issue price of Rs 265.

Earlier, Cyient DLM's IPO worth Rs 592 crore received a massive response from investors with an overall subscription at 71.3 times.

The company is an integrated electronic manufacturing services (EMS) and solutions provider with a focus on the entire life cycle of a product, including design, build, and maintenance. It counts several marquee global enterprises including Honeywell, Thales Global Services, ABB, Bharat Electronics and Molbio Diagnostics as its clients.

During the last financial year, the company's revenue from operations grew 15 per cent to Rs 832 crore, while profit for the same period stood at Rs 31.7 crore, up by four per cent.

It draws a major part of its revenues from printed circuit board assembly (PCBA), with around 63 per cent contribution, while about 32 per cent of its revenue comes from box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.

The company has a robust deal pipeline worth Rs 2,500 crore for the next 18-24 months. It is confident of growing its revenue above the industry average for the next few years. On the operating margin, the electronic manufacturer is hopeful of maintain its margin at 12-13 per cent level in coming quarters.

Cyient DLM operates in automotive, aerospace & defence, communications, industrial, healthcare & life sciences space. As the company is operating in a niche space with high demand for such electronic products, brokerage firms are optimistic about its growth prospects in coming years.

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