Expect FY18 growth at higher-end of guidance; margins back to double-digits: KPIT

KPIT Technologies first quarter net profit grew marginally to Rs 55.45 crore versus Rs 53.6 crore reported in the earlier quarter. The revenue growth of 4.7 percent at USD 134.4 million was better than street expectation, EBITDA margins at 9.1 percent versus 10.1 percent quarter on quarter disappointed street.

Discussing the quarterly performance in detail, Kishor Patil, Co-Founder, CEO & MD, KPIT Technologies said they are confident that the constant currency growth will be at the higher end of the guidance in FY18. The growth guidance by the company is between 6-8 percent. Any revision in revenue guidance will be looked at end of the third quarter, he said.

The subdued margins were due to rupee appreciation and Q2 margins are also likely to be impacted by salary increment, said Patil in an interview to CNBC-TV18. However, in second half higher utilisation, better business mix will aid marin improvement. He is confident of getting back to double-digit margins.

The company will see 8-9 percent increase in offshore utilisation, he said.