Cyient Ltd’s net profit increased 26 per cent to Rs 68.5 crore in the first quarter ended June 30, 2014 compared with Rs 54.3 crore in the corresponding quarter of the previous year.

Revenues of the Hyderabad-based company, formerly Infotech Enterprises, also increased 28.5 per cent to Rs 621 crore (Rs 483 crore). This was driven by broad-based business growth across all operating units and markets.

Operating profit

Operating profit on a quarter-over-quarter basis, however, has declined 18.4 per cent. "While margins declined on account of the appreciation of the rupee and salary increases, we are actively working on the levers of margins to improve the same over the course of the year,’’ Krishna Bodanapu, Managing Director and Chief Executive Officer, Cyient, said in a release.

For the first time in the history of the company, it crossed $100-million revenue in a single quarter, he added.

According to Ajay Aggarwal, Chief Financial Officer, growth in other income and improved tax rate helped to offset moderation in operating margin due to wage hike and exchange rate impact.

During the quarter under review, Cyient added 445 employees and nine customers. On April 1, 2014, Cyient had completed acquisition of the US-based Softential, Inc and the results had reflected the financials of this entity.

Cyient’s scrip lost 1.47 per cent and ended at Rs 335 on the Bombay Stock Exchange.