i. Rajendra Velagapudi is the Managing Director of the Company. He holds a bachelor’s degree in technology (Mechanical) from Faculty of Engineering, Nagarjuna University, a master’s degree of engineering in automobile engineering from Anna University, Madras and degree of master of science in design of rotating mechanics from School of Mechanical Engineering, Cranfield University. Prior to joining the Company, he worked with Ford Truck Manufacturing Division, Simpsons Co. Ltd. 186 for a period of two years, Bajaj Tempo Limited and Bharat Earth Movers Limited for a period of over eight years. He was appointed to the Board of Directors with effect from April 25, 2017. ii. Ganesh Venkat Krishna Bodanapu is a Chairman, Non-Executive & Non-Independent Director of the Company. He holds a bachelor's degree of science in electrical engineering from Purdue University and a master's degree in business administration from the J.L Kellogg School of Management, Northwestern University. He has been associated with the Promoter since 2003 and currently is the managing director and chief executive officer of the Promoter. He was appointed to the Board of Directors with effect from February 4, 2015. iii. Venkat Rama Mohan Reddy Bodanapu is a Non-Executive, Non-Independent Director of the Company. He holds a bachelor’s degree in engineering from Faculty of Engineering, Andhra University and degree of master of technology from Indian Institute of Technology, Kanpur. He also holds a master’s degree of science from University of Mirhigan and a degree of doctor of philosophy from Jawaharlal Nehru Technological University. Previously, he has been associated with HCL Limited and Electronic Industries Association of Andhra Pradesh. He was appointed to the Board of Directors with effect from December 27, 2022  

A. Balance Sheet

Particular (In Crore)	Mar-21	Mar-22	Mar-23
Equity Share Capital	1.367	1.367	52.866
Reserves	36	76	145
Borrowings	234	293	314
Trade Payables	190	192	285
Other Liabilities	184	214	307
Total Liabilities	607	700	907
Net Block	140	129	122
Capital Work in Progress	2	3	1
Investments	0.3	0.3	90
Other Assets	59	52	52
Total NC Assets	202	185	265
Receivables	226	152	162
Inventory	155	270	425
Cash & Bank	15	77	77
Other Assets	46	93	176
Face value	10	10	10

B. Profit & Loss Statement

Particular (In Crore)	Mar-21	Mar-22	Mar-23
Sales	628	721	832
Raw Material Cost	478	555	634
Change in Inventory	17	-11	11
Employee Cost	47	52	65
Other Expenses	40	41	34
Other Income	9	8	6
EBITDA	55	92	94
EBITDA Margin	8.73%	12.62%	11.22%
Depreciation	18	19	19
Interest	21	22	32
Profit before tax	16	51	43
Tax	4	11	11
Net profit	12	40	32
NPM (%)	1.85%	5.46%	3.78%

C. Cash Flow Statement

Particular (In Crore)	Mar-21	Mar-22	Mar-23
Cash From Operating Activity
Profit From Operation	55	88	92
Receivable	-172	76	-11
Inventory	67	-114	-156
Payable	82	1	91
Other WC Items	3	5	52
Working Capital Changes	-20	-33	-23
Direct Taxes	0.1	-6	-17
Net Cash Inflow from Operating Activity	35	49	52
Cash from Investing Activity
Fixed assets purchased	-27	-8	-8
Fixed assets sold	0	1	0
Investments purchased	0	0	-89
Other investing items	26	-25	-45
Net cash inflow from investing activities	-1	-32	-142
Cash from Financing Activity
Proceeds from shares	0	0	89
Proceeds from borrowings	0	0	188
Repayment of borrowings	-215	-196	-389
Intrest paid fin	-9	-7	-14
Other financing items	-6	-6	-6
Net Cash Flow	-9	62	-16

 

Review and Recommendation of Cyient DLM by IZ team is 5/10 1. Strong industry presence: Being a qualified supplier to global OEMs in sectors like aerospace and defense, medical technology, and industrial, Cyient DLM Limited has successfully established its presence in key industries. This indicates a level of trust and confidence in the company's capabilities.

2. Comprehensive value chain: Cyient DLM Limited's ability to cover the entire life cycle of a product, from design to manufacturing, positions them as a one-stop solution provider. This integrated approach enhances efficiency, reduces lead times, and ensures smoother collaboration between different stages of product development.

3. Synergy with Cyient Limited: Leveraging the engineering and design expertise of Cyient Limited provides a competitive advantage to Cyient DLM Limited. This collaboration allows them to deliver holistic solutions that cater to various client requirements and industry-specific challenges.

4. Safety-critical systems focus: By offering box builds for safety-critical systems, Cyient DLM Limited demonstrates its commitment to high-quality manufacturing and its ability to meet the stringent requirements of critical industries. This specialization could give them a competitive edge in these markets. 5. Financials: In the financial year 2021, the company generated revenue of INR 628 crores, while in the financial year 2022, the revenue increased to INR 721 crores and in the financial year 2023, it is expected to increase to INR 832 crores. The CAGR growth is only 15% which is on lower side. 6. Peers: Syrma, Kaynes and DCX peers shown have clocked CAGR revenue growth of 52%, 64%, and 40% in the last 3 years. And, in comparison to that Cyient DLM has shown revenue growth of 15%. 7. Asking Valuation: The IPO is priced at P/E of 66x which looks on higher side.

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