Cyient DLM Limited

IPO Type: Fresh Issue

  • Pre-IPO Placement Amt.: 108 Cr. [~ 0.41Cr. shares @ 265 each]
  • TOTAL ISSUE SIZE Amt.: 592 Cr. [~ 2.23Cr. shares @ 265 each]

Promoter: CYIENT LIMITED | Pre-IPO Promoter Holding: 92.84% | Post-IPO Promoter Holding: 67%

Summary of primary business:

  • Provider of EMS (Electronics Manufacturing Service) and solutions as either B2P (Build to Print: Use customer’s design to manufacture) or B2S (Build to Specification: Do the design, take customer’s approval, and then manufacture).
  • Production of: (i) printed circuit board (“PCB”) assembly (“PCBA”), (ii) cable harnesses, and (iii) box builds.

Bengaluru facility:

Summary of the industry in which Company operates:

India’s EMS industry is the fastest growing among all countries at a CAGR of 32.3%. Indian EMS market is expected to grow at 30+% CAGR till FY27. Significant reasons driving the growth are raising labour costs in other parts of the world and a trend among large OEMs to outsource manufacturing rather than invest in their own infrastructure.

Range of Services offered by EMS companies:

  • Design services and solutions: Design services include multiple associated actions that occur after determining the customer’s specific requirements and before manufacturing or at the beginning of an assembly. The EMS Company based on inputs from the OEMs creates conceptual design and the same is shared with the OEMs for inputs and approvals.
  • Prototyping: The next step is to create a Proof of Concept (POC) to demonstrate that concept of design, functions. Post that, once design for manufacturability, design for testing and design for servicing are established, prototypes are made to make sure that the product will serve its proposed purpose after it is manufactured as a part of a bigger production run.
  • Testing services: Testing is an essential element across the entire EMS value chain. EMS companies which can design test solutions for both at PCBA level and at the end of line product testing, including functional testers and fixtures are preferred by the OEMs.
  • PCB Assembly: At the heart of the electronics industry is Printed Circuit Board or PCB. A PCB with components mounted on is called an assembled PCB and the manufacturing process is called PCB assembly or PCBA for short. PCB assembly is a major activity and normally outsourced to EMS companies.
  • Box Build: In this, an OEM outsources complete product manufacturing to an EMS company, which manufactures the final product, adds the OEM’s logo, and dispatches it to the OEM’s warehouse for selling. This model is largely used in high volume low mix (HVLM) type of products such as mobiles, computer hardware and industrial segments.
  • Aftersales Service (Repair and Rework): The demand for repair and remanufacture is not high, because majority of electronic products do not necessitate repair or remanufacturing and are focused more on replacement. Niche verticals like aerospace and defence, railways and high-end electronics segment is opening to accept third-party repairs due to high cost of equipment and re-design which provides immense potential for this segment.

Industry’s working models:

Industry peers:

Various KPI’s:

Key fundamental parameters alongwith competitors:


  • Suchitra R C who Heads the EMS joined on November 5, 1993.
  • Prashant Suresh Mokashi is the Head – Program Management in Company. He joined Company on January 25, 2016

Key Risks:

  • Top 10 customers constituted 91.08% of total revenue from operations for the year ended FY23
  • A significant portion of revenue from operations is derived from B2P solutions, and from the manufacture and sale of PCBAs. In Fiscal 2023, 99.80% of total revenue from operations was from B2P solutions. Further, in Fiscal 2023, 62.62% of total revenue from operations was from the manufacture and sale of PCBAs.
  • Cost of materials consumed constituted 79.75% of total expenses for the year ended March 31, 2023. Profitability is dependent on inventory costs. Failure to manage inventory costs may have an adverse effect on business
  • Dependent on Promoter (Cyient Ltd.) for design (B2P) support
  • Lack of niche competitive advantage.
  • Most of the Senior Management Personnel are freshly onboarded.

Key Takeaway:

Industry’s expected sales growth for the next 4~5 Yrs. seems lucrative. Plan to read and understand further from the public filings of the listed peers, which are mentioned in the RHP:

Source: Company’s RHP.
Disc: No plan to apply in the IPO.


Interview in Telugu. Not applying for the IPO.


Can you please summarize the interview for non-Telugu speakers?

@Surender sir , Thank you for initiating this review. This industry is now having quite a few players listed in last one year, Avalon is one more player, in addition to the companies you mentioned.
In Q-4’ 23, Kaynes reported best margin. Though the industry margin is moderate, but industry outlook appears - multiyear large growth opportunities.
I find there is a pure design player also - Moschip
Would like to see more review on the EMS companies / industry.
Invested - made a basket.


Insightful Discussion-
Omkara Pathshala YT

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