Will sustain current revenue growth momentum: KPIT Cummins

The pyramid improvement happens as the year progresses so that will certainly give us a second lever. The third lever we have is the productivity because we believe that we will be in a position to really get a much better productivity after we integrate stronger and all our acquisitions. So, with all these three, we should be in a position to drive margins further.

Q: You will keep it at 15% or you think you will do better than that?

A: We certainly will do better than that in the year.

Q: What about, if you can detail what is the contribution of the various sectors to your total profit as well as revenues, automotive, each sector separately?

A: In Q1 we were naturally very helped by strong rupee and naturally we do not know where it goes and the moment can go either way. But these three factors will certainly help us compensate or further improve it from going forward.

In terms of the sectoral contribution, we are very evenly more or less like 38% from automotive; about 31% from manufacturing and energy utilities is currently at 12%. Energy utility is a very new vertical for us for last two years. So, we expect that to move further.

Q: Can you update us on deal wins? What exactly was the trajectory this quarter and what can we expect in terms of FY13 in terms of a possible size of deal wins and quantum as well?

A:  We have closed pretty reasonable size deals in last six months. So during this quarter we have seen that there is a traction in the deals which are more medium size and not significantly large deals. There are deals in the pipeline, but we see the combination of medium sized deals as well as large deals and more medium sized deals. We largely see that in USA and Asia-Pac, relatively less in Europe for us right now.

Q: You have reported a 5% growth in dollar earnings in the current quarter. What you are suggesting by your guidance is that the subsequent quarters are going to grow even more strongly?

A: What I have mentioned is that our growth will be evenly based so we will continue to grow. We will not have any bumper quarters or anything; we will continue to grow evenly. So I am not saying there will be a stronger growth later. In the current situation we will not say that. But we believe that the growth momentum what we have setup and what guidance we have given for the year we will be in a position to meet if not exceed.

Q: Can you just give us an update with regards to Revolo?

A: Last time as we had mentioned that most of the technical engineering work is done. We have setup the manufacturing facilities so that we can take out 200 vehicles on the road and that we would achieve in next four to five months. We are on track on getting those vehicles out.