Shares of Cyient hit a new high of Rs 1,230 as they rose 6% on the BSE in Monday’s intraday trade after the IT company reported strong March quarter (Q4FY23) earnings amid an already subdued market. In contrast, the S&P BSE Sensex was flat or up 0.01% to 59,656 at 10:08 am.

Cyient shares have gained 52% so far in 2023 (CY23), compared with a 2.4% decline in the benchmark index.

Cyient provides engineering and development services for aerospace, defence, transportation, E&U, and communications. In Q4FY23, the company’s consolidated operating income rose 48.3% YoY and 8.2% QoQ to Rs 1,751 crore on the back of a strong service deal pipeline.

The company reported an order intake of $212.7 million, down 10.3% sequentially, and mentioned that it won five large deals with a total contract potential of $185.1 million. Cyient further mentioned that the large deal won involved four business units.

Regarding the FY24 guidance, the company expects double-digit growth in large verticals such as transportation, connectivity and sustainability, supported by solid service demand, robust order book and large deals. It is guiding for 15-20% growth in consolidated services revenue.

The company guided for a 100-200 basis point, or 14.7-15.7%, increase in integrated services EBIT margin in FY24. The means to improve margins will be enhanced fulfilment, productivity through automation and management costs, Cyient said.

The stock was trading above brokerage firm ICICI Securities’ target price of Rs 1,210 per share.