Cyient Ltd surges 7% on establishment of subsidiary to expand semiconductor business

Cyient Ltd stocks jumped 7.4% on Friday, July 12, to hit an intraday high of ₹1,905 per piece on NSE.

The stock opened trade at ₹1796, up from the previous close of ₹1773.40, before hitting the day's peak. The stocks closed 3.64% higher at ₹1838.

Commenting on the development, Krishna Bodanapu, Vice Chairman & Managing Director of Cyient Limited, said, “We are happy to announce this strategic initiative that enhances our capabilities in Application Specific Integrated Circuit (ASIC) turnkey design and manufacturing.”

“Cyient's credentials in the semiconductor electronics sector through Cyient DET and Cyient DLM have enabled us to set up this subsidiary to drive a dedicated focus on turnkey ASIC design and chip sales through a fabless model for analogue mixed-signal chips. This subsidiary ushers a new avenue of possibilities for Cyient to enhance value to our stakeholders and we are grateful for their continued support in this journey,” he added.

In March this year, Cyient approved three semiconductor plant proposals to enhance its manufacturing capabilities. The combined investment in the project is ₹1.26 lakh crore.

Cyeint Ltd reported impressive growth numbers in the last quarter of FY24. The IT company posted ₹1,860.80 crore in income from operation, up by 6.2% from ₹1,751.40 in Q4FY23. Its net profit for the period rose over 20% to ₹196.9 crores in Q4FY24 from ₹163.20 crore in the year-ago period.

Cyient Ltd offers engineering and technology solutions in partnership with more than 300 clients globally.