KPIT posts 50% jump in net profit, hikes margin outlook

KPIT Technologies, an auto industry-focussed software and engineering firm, posted a 50.6% year-on-year jump in net profit at Rs 156.75 crore for the third quarter ended December end. The profit stood at Rs 104 crore in the same quarter a year ago. The profit was backed by healthy margins and robust demand from software-defined vehicles.
The Pune-based IT firm’s consolidated revenue rose by 37.06% to Rs 1,256.96 crore as compared with Rs 917.11 crore in the year-ago period.

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The strong growth was driven by demand for powertrain, autonomous, and connected domains, with the growth led by passenger vehicles in Europe and Asia.
KPIT did not give a guidance this quarter but in Q2 had increased its constant currency (CC) revenue growth outlook for full-year FY24 to over 37%, up from 27-30% previously.

On a sequential basis, net profit grew 10.8% from 141.40 crore while its consolidated revenue rose 4.8% from Rs 1,199.15 crore.

The EBIT margin expanded to 16.6%, up from 16% in the preceding quarter. EBIT margin guidance was marginally increased to 20% plus from 19-20% earlier.

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In constant currency terms, revenue grew 31.5% in rupee and 35% y-o-y in dollar terms. Sequentially, revenue increased by 4.3% in rupee and 2.7% in dollars.In a seasonally weak quarter for the IT services sector, the growth comes at a time when the top tier software exporting majors recorded muted growth amid macroeconomic uncertainties.

KPIT’s order book for the October to December period stood at $189 million, up from $156 million reported in Q2. Deal wins came from across verticals including strategic accounts, passenger car vertical, electric powertrain, autonomous driving and digital connected solutions practices.

“The Q3FY24 revenues have been in line with our expectations, while we have delivered slightly ahead of expectations on the profitability front. Basis our performance so far, robust pipeline and the consistency of demand driven by new technology investments by our strategic clients, we are confident of meeting our upward revised outlook for the year,” said Kishor Patil, Co-founder, CEO and MD, KPIT.

The company also announced strategic investment in N-Dream AG, one of the early movers in the in-car casual gaming space.


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