KPIT Q1 Results: Revenue, Profit Rise Amid Wider IT Sector Slowdown
KPIT has now guided for 27-30% revenue growth, in constant currency terms, for FY24.
KPIT Technologies Ltd. aims to grow by nearly a third in fiscal 2024, at a time when the wider $245-billion Indian information technology industry is staring at a washout.
Revenue of the Pune-based autotech firm rose 7.9% over the previous three months to Rs 1,097.6 crore in the quarter ended June 30, according to an exchange filing on Tuesday. That compares with the Rs 1,068.13-crore consensus estimate of analysts tracked by Bloomberg.
KPIT Technologies Q1 Results: Key Highlights (QoQ)
Revenues up 7.9% to Rs 1097.6 crore (Bloomberg estimate: Rs 1068.13 crore).
Net profit up 20.5% at Rs 134.4 crore (Bloomberg estimate: Rs 120.35 crore).
Ebit up 20.6% at Rs 168.9 crore.
Ebit margin at 15.4% versus 13.7%.
In constant currency terms, the revenue was up 7.1% sequentially. KPIT has now guided for 27-30% revenue growth, in constant currency terms, for FY24. It aims to exit the financial year with an operational profitability of 19-20%.
The first-quarter earnings include a one-time gain of Rs 13.41 crore, stemming from the acquisition of FMS Future Mobility Solutions GmBH. KPIT, through a wholly owned step-down subsidiary, acquired the balance 75% stake in the German firm for €15.19 million. About €7 million were paid upfront during the April-June quarter.
“We have a healthy pipeline and are slightly ahead in the ramp-up of the mega strategic engagements announced last year,” Kishor Patil, co-founder and chief executive officer at KPIT Technologies, said in a statement. “This gives us a fair medium-term visibility and we are confident of reaching our stated outlook of revenue growth and operating margins for FY2024."
The company clocked a total contract value of $190 million in new deal wins in the quarter ended June 30. Net cash reserves stood at Rs 526 crore, after paying Rs 242.9 crore for acquisitions. The operational expenses stood at Rs 883.74 crore, including a forex loss of Rs 6.13 crore. The days sales outstanding was 50 days.
As on June 30, KPIT had 11,571 employees.
“The attrition has been consistently falling over the last three quarters,” Sachin Tikekar, co-founder and joint managing director at KPIT, said in the statement. “We are investing in improving the quality of hires and building the right competencies and technologies to enable flawless execution.”
