Cyient DLM, a Hyderabad-based contract manufacturing subsidiary of Cyient Limited, is targeting AI data centers and robotics as its next major growth opportunities. The company's CEO, Rajendra Velagapudi, revealed that the company is expanding into these sectors to capitalize on the booming demand for AI infrastructure and intelligent systems.
New Growth Sectors: AI Data Centers and Robotics
Cyient DLM's strategic pivot into AI data centers and robotics is driven by the growing demand for advanced technologies. The company is leveraging its expertise in electronics and mechanical systems to secure contracts in these emerging fields.
AI Data Centers
- Cyient DLM is focusing on providing power controllers, cables, and connectors for AI data centers.
- The cooling systems, a critical component for high-performance computing, are a key area of focus due to the company's combined electronics and mechanical capabilities.
- Velagapudi highlighted a potential market value exceeding $45 billion, with opportunities for growth as the sector matures.
Robotics
- The company is targeting the robotics sector, particularly humanoid robots, which require complex PCBAs and power sensors.
- Cyient DLM aims to design and manufacture components for humanoid robots, with applications in manufacturing and logistics.
- Velagapudi emphasized the company's ability to handle up to 60-70 different PCBs in a single robot, showcasing its technical expertise.
Market Expansion Strategy
Cyient DLM's sales teams are primarily focused on entering the US market, where demand for AI and robotics solutions is surging. While the company is also engaging with Indian manufacturers, the US remains the primary target for growth.
Financial Performance
Cyient DLM's financials reflect its strong position in the market:
- Q1FY27 order book: ₹2,598.9 crore
- Revenue: ₹373.8 crore, a 34.3% YoY increase
- EBITDA: ₹39.2 crore, a 56.2% YoY growth
- Profit after tax (PAT): ₹16.3 crore, with margins expanding by 168 basis points
Cyient DLM's strategic focus on AI data centers and robotics, coupled with its strong financial performance, positions the company well to capitalize on the growing demand for advanced technology solutions.