Shares in the Indian engineering services provider Cyient surged 5% on Wednesday morning, after the company announced a reshuffling in its leadership ranks. The move includes the appointment of Krishna Bodanapu as Executive Vice-Chairman and Managing Director, and Karthikeyan Natarajan as Executive Director and Chief Executive Officer.
Current President and Global Head of Aerospace, Rail and Communications, Prabhakar Atla, is designated as the CFO and will take over from Ajay Aggarwal on April 20.
These leadership changes follow the announcement by the Cyient board for the reorganisation of the company into two entities. The company has filed the draft papers for taking its design and manufacturing business public through an IPO, and Antony Montalbano will take charge as the CEO of the company. Natarajan and Montalbano will report to Bodanapu.
Foreign brokerage firm Morgan Stanley believes that the new leadership changes are steps in the right direction for the company. The firm has assigned an ‘overweight’ rating on the shares with a target price of Rs 1,100.
In the latest quarter (Q3FY23), the consolidated revenue from Cyient operations increased a whopping 36.7 percent on a YoY basis to Rs 1,618.2 crore. The net profits or the period stood at Rs 156 crore, growing 97 percent on a QoQ basis and 18 percent on a yearly basis.
In the last one year and six months, Cyient’s shares have grown an impressive 11 and 30 percent respectively. Currently, the stocks are trading 4.57 percent higher on the NSE at Rs 1,040.15.
Cyient is an Indian engineering services provider based in Hyderabad, India. The company offers services in consulting / advisory, design, sourcing, manufacturing, quality engineering testing, and end-to-end product lifecycle management. The company works in key industry verticals such as aerospace, rail, healthcare, telecom and other industries. It has 25,000 employees spread across the globe, with offices across the US, Canada, Europe, Africa and the Asia Pacific.