Intelligent engineering services company Cyient posted ₹186.6 crore net profit for the quarter ended September, a marginal increase compared with ₹183.6 crore in the year-earlier period and 24% more on a sequential basis.
Total income for the second quarter was ₹1,900.2 crore (₹1,792 crore). The company has declared an interim dividend of ₹12 per equity share on par value of ₹5 per share.
Acquiring stake in ASIC firm
Cyient said it is investing $7.25 million to acquire 27.3% stake in Azimuth AI, a U.S. based embedded silicon product company that develops highly differentiated application specific integrated chips (ASICs) for edge computing applications.
“We have reached an agreement to acquire 27.3% stake in Azimuth AI, a fabless custom ASIC company known for its expertise in energy and industrial applications with focus across global markets including India. This investment aligns strongly with our strategic growth objectives for the semiconductor business,” executive vice chairman and MD Krishna Bodanapu said in a release on Thursday.
In another announcement, Cyient said it has reached an agreement to acquire Abu Dhabi & Gulf Computer Est (ADGCE), an Abu Dhabi-based technology consulting and digital services provider, primarily catering to the energy sector. The aim is build on expertise in energy business. The purchase price for the transaction will be paid on an enterprise value basis – on a debt free, cash free basis and will be equal to an upfront payment of $1.5 million and an earnout of $ 0.4 million upon 100% achievement of the business case.
Nod to close branches
The company said the board meeting also approved closure of branches in Singapore, Korea and Malaysia. Cyient shares closed 3.10% higher at ₹1,775.75 each on the BSE.
Published – October 24, 2024 09:11 pm IST
