KPIT Technologies profit surges 50%, revenue 37% in Q3

KPIT TECHNOLOGIES

KPIT Technologies, an auto industry-focussed software and engineering firm, reported a 50.64 percent year-on-year increase in net profit to Rs 156.75 crore for the third quarter ended December 30. This robust growth comes at a time when the overall IT services sector recorded a seasonally weak quarter and muted growth amid macroeconomic uncertainties.

The company's net profit grew by 10.86 percent over the last quarter, while its consolidated revenue jumped by 37.06 percent over the last year and by 4.8 percent over the last quarter to Rs 1,256 crore in the December quarter of FY24, according to BSE filings. The company's EBIT margin expanded to 16.6 percent, up from 16 percent in Q2FY4.

The company's order book for the period stood at $189 million for the quarter, 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.

Kishor Patil, Co-founder, CEO and MD, KPIT said, "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”.

Bucking the trend of its Tier-1 IT sector peers, KPIT back  in Q2 had increased its constant currency (CC) revenue growth outlook for full-year FY24 to over 37 percent, up from 27-30 percent previously. EBIT margin guidance too was increased to over 20 percent from 19-20 percent earlier.

Sachin Tikekar, President and Joint MD, KPIT said, "We are witnessing broad based traction across technologies, clients, sub-verticals and geographies...As we have seen over the last 4 quarters, the attrition continues to fall and is now at historically low levels."

"We have increased our investments in new technologies and competency
development to enable us deliver complex engagements, successfully”.

The company's total headcount increased sequentially by 756 employees to 12, 727.

The company’s board of directors announced an interim dividend of Rs 2.10 per equity share (about 21 percent) of face value of Rs 10 each, for the financial year 2023-24.