Cyient Limited (532175) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I thought Bombay was a vibrant city. Good morning, ladies and gentlemen. Good morning. First of all, thank you very much for being with us this morning and through the day. This means a lot to us. And I must add my very warm welcome to that of Harshita and Utkarsh. I must let you know that we really appreciate your making time to be with us this morning and through the day. Hopefully, it will be time well spent. And as you will see through the day, the various presentations and demonstrations, the core and heart of Cyient, its capabilities, the adaptation in a rapidly changing world, a world where there is technological changes, there are geopolitical equations that are changing, supply chains being disrupted first and significantly changed thereafter. And in all this, Cyient strives to meet its customer needs. While doing so, we also need to balance the interest of our stakeholders. And a very important constituent of this stakeholder community is yourselves. And therefore, I must let you know that we are very honored that you are all here. And we would like a feedback from time to time during sessions, at the question and answers, and in conversations with all of us here at Cyient as to what you believe that we should be doing, what we can do better. And we also enjoy constructive criticism as well in order for us to improve further. We have with us today our Founder Chairman, Dr. B.V.R. Mohan Reddy. Mohan? I have, together with Mohan, lived and experienced Cyient over 3 decades. His pioneering entrepreneurship, a world vision, a transformative progression over these years, and now true mentorship to Cyient. We also have our leadership team led by Krishna, Sukamal, various sector heads, various functional heads. And you can see how important it is for all of us here to interact with you. It's not just with the interface with Investor Relations. We want to interface with you as a company. And all of them will be introduced to you progressively, and please do spare your time for them. For over 3 decades, Cyient has been built step by step to be amongst the top 10 global engineering service providers across aerospace, rail, automotive and mobility, connectivity, utilities, mining, energy, health care, life sciences, and spatial intelligence. We serve over 300 customers in 30 countries across the world. We have 15,000 colleagues working in the offices, working with customers, making their businesses more effective. Across the world, about half our business is from North America. Europe is about 27%. Asia Pacific is a little over 21%. And the interesting thing about Cyient is that we have delivery centers, not just in India, but across the world and across all these geographies. Over these 3 decades, we have continuously transformed ourselves as we've added new sectors. And we've also built capability beyond just Digital Engineering and Technology to Design-Led Manufacturing, and more recently, Cyient Semiconductors. But what is at the core of Cyient? What is at the core of Cyient is domain expertise, human insight, embracing artificial intelligence to build intelligent engineering solutions. And you will hear all of this when various presentations take place. And while as a company, we focus on growth, on efficiency, and on building capability, you will be pleased to know that we will do this on a bedrock of very sound values. We call it Cyient FIRST: Fairness, Integrity, Respect, Sincerity, and Transparency, and I can assure you of this always. And what has this done for us over this period? It's helped us navigate business uncertainties. It's helped us recalibrate strategy. It's helped us to embed new technologies in our service offerings. It's helped us to improve productivity, to be focused on innovation, all to deliver better value to our customers. We also have tried to strengthen our core, and we position ourselves for the longer term. Krishna and Sukamal and Shrini and many of our other colleagues in more elaborate detail will cover Digital Engineering and Technology, structured transformation in this area, enhancing our leadership bandwidth, and you will meet many of them today. They will focus on execution discipline. They will also let you know how we are strengthening customer relationships and then also gaining greater access to growth markets. At the same time, we will not shy away from relooking at our portfolio, and we'll take a pragmatic approach to business. The Board is fully behind them. We've also had our difficulties. For example, our consulting business has not fully realized its potential, and the Board has encouraged the team to pursue higher-value engagements and to serve customers from a very early part of the business cycle. With Digital Engineering and Technology as the traditional core at Cyient, we have addressed complementary businesses, Design-Led Manufacturing, or DLM, which in itself has become a reliable manufacturing partner to customers, and you will hear more of this from Krishna. And to harness emerging or possibly exponentially growing opportunities, we have now Cyient Semiconductors, a strategically important sector with long-term opportunities, and we are in a position now as we build this business, and we also are focused on adding on or bolting on critical acquisitions in this area like we've done so with Kinetic. Our recent acquisition of TAO Digital is pivotal to the larger strategy of embedding artificial intelligence in our offerings. With all this, the Cyient Group continues to progress, and I'll leave it to the team to tell you how we are progressing, in which areas we are focusing, and how it delivers value to all our stakeholders. What will we do as a Board? As a Board, we will encourage the team to build expertise to ensure that we enhance our domain knowledge, embedding new technologies into our service offerings, all leading to intelligent engineering. And we will do this across the life cycle. We will do this to ensure quality, reliability, and we will ensure regulatory compliances. We will build value across DET, DLM, and Cyient Semiconductors. We will look very closely and carefully at capital allocation. We will reward our shareholders. And you can see that, and as Shrini will explain to you as well, the sum of the parts is also quite attractive. We recently went through a buyback in a prudent manner. We will manage risk carefully. And I must tell you that we believe, and we are extremely confident, that the disruptions that we have seen across the world have not disturbed us very much. We will continue to build and enhance trust with our customers, strong governance, not just in India at the parent, but at every constituent company of Cyient and at every location across the world. We will challenge the management team across respective businesses and derive synergies and leverage capabilities. We will incubate new businesses through select corporate venturing and encourage innovation hubs, not just in India, but across the world, and you will see this as well during the presentations. As a Board, we are also encouraging the team to look at India. The emergence of India in many sectors, particularly in semiconductors. As you would have seen the recent India Semiconductor Mission and the fact that we've been given an opportunity to enhance the capabilities of the semiconductor complex. We will work together with the leadership. And as a Board, we have a diverse Board. In terms of a vision, a continuity and a transformative ability, and true mentorship, we have Dr. Mohan Reddy still with us on the Board. In terms of technology and policy, we have Debjani Ghosh. In terms of an industry perspective, we have Mr. Nitin Prasad. More recently, we've added Mr. Murali Yadama and to a certain extent, myself. In terms of functional capabilities, we have Mr. Ramesh, Mr. Sunil Bhumralkar, and Professor Madan Pillutla. Together with Krishna and Sukamal, we make up the Board. And we work closely with the leadership in terms of doing things better, doing things better, not just to meet our aspirations, but to ensure that we meet customer expectations and more so yours as investors. Ladies and gentlemen, we are on a journey. We are on a journey that we are committed to. We are committed to with 2 things underpinning this commitment, the courage of conviction and the content of character. Thank you all for your support, and we wish you all the very best and enjoy the day. Thank you.