Auto sector-focused software company KPIT on Wednesday reported a 23 per cent jump in its March quarter net profit to Rs 47.04 crore, driven by a higher profit margin. The company reported a post-tax profit of Rs 141.39 crore in FY21, compared to 146.7 crore a year ago.
Its overall revenues declined to Rs 2,049.6 crore in FY21, from Rs 2,184.4 crore in the preceding fiscal. Its co-founder, managing director and chief executive Kishor Patil said the company is targeting a double-digit rise in revenue in the new fiscal and is very confident about the new deal pipeline.
Its operating profit margin improved to 17.2 per cent from the year-ago period's 13.5 per cent on cost-saving measures, Patil said, adding that there were headwinds, including the rupee appreciation and impact on wage bill due to promotions. The company is targeting to keep the operating profit margin at 16-17 per cent level in FY22, he said.
The company, which experienced a dip in its overall employee base in FY21, will be a net hirer of staff in FY22, Patil noted. Over 600 campus offers have been made to freshers and it will also be augmenting its base by hiring laterally, which will be done two quarters ahead of requirement.
After deferring any salary hike in FY21, it will be reverting to its normal practice and declare a salary hike for all employees starting July, he said. Patil said up to 3 per cent of its overall workforce has been impacted in the second wave of the pandemic, and stressed that employee well-being will be one of the biggest focus areas.
He, however, exuded confidence that delivery schedules will not be impacted as a result of the second wave and added that the company expects staff to come back to working from offices from the second half of the fiscal. It did not take some of the new office space it was supposed to be taking after the onset of the pandemic, he said, adding that less than 2 per cent of the staff are working from offices at present.
The company, which closed the fiscal with cash and equivalent at Rs 822 crore, may also look at acquisitions to grow its business if it makes the right fit, Patil said. KPIT scrip shed 1.62 per cent to close at Rs 194.25 apiece on the BSE, as against a 1.61 per cent gains on the benchmark, at the end of Wednesday's trade. KPIT scrip shed 1.62 per cent to close at Rs 194.25 apiece on the BSE, as against a 1.61 per cent gains on the benchmark, at the end of Wednesday's trade.