KPIT Technologies Q2 results: Profit surges 69% YoY, revenue grows 60%

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KPIT Technologies, an auto industry-focussed software and engineering firm, reported a 69.21 percent year-on-year increase in net profit to Rs 141.40 crore for the second quarter ended September 30. This robust growth comes at a time when the IT services sector is seeing muted growth amidst macroeconomic uncertainties.

The company's net profit grew by 5.18 percent over the last quarter, while its consolidated revenue jumped by 60.23 percent over last year and by 8 percent over the last quarter to Rs 1,208.86 crore in the September quarter of FY24, according to BSE filings.

Bucking the trend of its Tier-1 IT sector peers, KPIT Technologies increased its constant currency (CC) revenue growth outlook for 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.

The company's order book for the period stood at $156 million for the quarter, down from $190 million reported in Q1. Deal wins were led by strategic accounts, passenger car vertical, electric powertrain, autonomous driving and digital connected solutions practices.

EBIT margin for Q2 grew to 16 percent, up from 15.9 percent in Q1FY24.

EBITDA margin for Q2 came at 20 percent after absorbing the impact
of wage hikes during the quarter. Gross Impact of wage hikes was 250 bps which was offset by revenue growth and net realization improvement.

Kishor Patil, co-founder, CEO and MD, KPIT said, “We are delighted to deliver another quarter, consistent with our robust performance over the last 3 years. Our medium-term business fundamentals and growth drivers remain unchanged. While the geopolitical situation and economic uncertainty across geographies is leading to a softer macro environment, we keep a watchful eye on the impact on our clients and their business priorities.”

“Our clients remain committed to making investments in newer, relevant technologies. Basis our performance so far and near-term visibility, we raise our CC revenue growth outlook for FY24 to 37%+ growth and increase EBITDA margin outlook to 20%+,” Patil added.

On a QoQ basis, net headcount increased by 400 to 11,971.

Basic earnings per share (EPS) grew to Rs 5.20 95 for the September quarter compared to Rs 4.95 in the June quarter.