KPIT Q2 net profit rises 37% to Rs 82 cr

We are in the last phase of the September quarter earnings season, and the results announced by the BSE 500 companies so far have shown signs of a sharp recovery, as compared to the June quarter, when the economic activity in the country was compromised due to lockdown in various regions. From the BSE 500 list, 216 companies have announced their September quarter results so far. We excluded banking and financial companies.  Along with the index stocks we also analyse each sector quarterly earnings. (Data Source: ACE Equity)

IT firm KPIT said its net profit grew 37.4 percent to Rs 82 crore in the second quarter ended September 30. It had reported a net profit of Rs 59.7 crore in the year-ago period, KPIT said in a statement.

The company's sales increased 17.7 percent to Rs 1,078.8 crore in the reported period from Rs 916 crore in the same quarter a year ago, it added.

"The quarter gone by witnessed solid improvement in operating margins despite wage hikes, driven by operating efficiencies and better quality of revenues. We are on track to achieve our annual revenue guidance and exceed the annual operating margins guidance," KPIT co-founder, CEO and MD Kishor Patil said.

The merger-demerger process is progressing well, as per planned timelines, he added.

Earlier in the year, the company had announced a merger-demerger transaction, involving KPIT and Birlasoft. The merger of KPIT and Birlasoft will create an over $700 million entity that will be demerged into two separate companies.

Sachin Tikekar, president and board member at KPIT, said the company is "progressing well on the business familiarisation process with Birlasoft".

The company incurred around Rs 17.2 crore as expenses towards the merger-demerger transaction during the said quarter as compared to Rs 10.8 crore in the previous quarter.