Tech firm KPIT Technologies on Wednesday reported a 23.3 percent rise in consolidated net profit to Rs 38.1 crore in March 2020 quarter.
This is against a net profit of Rs 30.9 crore in the year-ago period, KPIT said in a regulatory filing.
Its revenue from operations stood at Rs 556.2 crore in the reported period, up 10.9 percent from Rs 501.2 crore in the March 2019 quarter, it added.
In 2018, CK Birla Group-owned Birlasoft and KPIT Technologies had announced that they will merge and then split into two publicly-traded companies to create two specialised IT players.
After the demerger, the engineering business was incorporated on January 8, 2018, and listed on the BSE and NSE as KPIT Technologies in April 2019.
"FY20 was the first full year after demerger and we are happy to report industry leading comparable organic growth of over 14 percent in FY20. FY20 has been a year of further sharpening of focus and energies," KPIT co-founder and Chairman Ravi Pandit said.
In FY20, the net profit was at Rs 146.7 crore, while revenue from operations was Rs 2,156.1 crore.
"We are cautious about FY21 owing to uncertainty due to the current disruption and possibility of a relapse of the pandemic globally," the company said in an investor presentation.
Therefore, the company has refrained from giving any outlook for FY21 at this juncture.
"H1 FY21 revenues will be impacted and significant effect will be in Q1FY21. New deal wins benefit will be seen from H2FY21...We expect the current disruption in Automotive industry to create new opportunities in the medium term," the company said.
Kishor Patil, co-founder, CEO and Managing Director of KPIT, said the company experienced good traction in strategic accounts, which have cumulatively grown by about 20 percent in FY20.
"We have a strong balance sheet and have consistently built on our cash reserves. While COVID-19 will have a negative impact on business in H1FY21, we are now having constructive discussions with our clients and have won some sizable new deals, the benefit of which will start flowing in H2 FY21," he added.
In a separate update, KPIT said by end of March 2020, it had over 98 percent of its global staff working from remote locations.
"As per our initial assessment, there will be significant impact in H1 of FY21 and we expect recovery to commence from Q3 of FY21. KPIT TECH has a strong balance sheet with over Rs 3.3 billion net cash balance and negligible debt... It remains extremely confident that it will be able to meet all its delivery and financial commitments in time," it added.
Besides, KPIT Chief Financial Officer Vinit Teredesai has resigned from his position.
The Board of Directors, in its meeting on Wednesday, accepted the resignation of Teredesai as CFO and key management personnel (KMP).
He will continue in his current role till early June 2020, the company said.
Priyamvada Hardikar, Senior Vice President and Head of Finance has been appointed as Chief Financial Officer and KMP of the company, it added.
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