KPIT, a software development and integration partner for automotive and mobility industry, announced consolidated revenue growth of 27 per cent year-on-year and 8.3 per cent quarter-on-quarter in Q2FY23. EBITDA margin outlook increased to 18.5-19 per cent. 

It reported EBITDA growth of 33 per cent Y-o-Y and net profit growth of 28 per cent Y-o-Y. Consolidated revenue growth outlook for FY23 increased to 31–32 per cent. The company said revenue pipeline was at an all-time high and total contract value (TCV) of $142 million during the quarter.

It reported sequential consolidated revenue growth of 8.3 per cent, led by digital connected solutions and electric powertrain domains; growth led by commercial vehicles vertical; higher cross-currency impact; and EBITDA impact of 90 basis points post wage hikes in the quarter (gross impact of wage hikes of around 300 bps).

Fresher additions and cross-currency headwinds impact continues, the company said. Operating efficiency, net realisation improvement and revenue growth helped reduce impact on reported margins.

Lower other income to the tune of ₹5.8 crore on account of translation-related foreign exchange losses resulting mainly from rupee depreciation/appreciation against the USD/Euro.

Net cash at quarter-end stood at ₹960 crore post dividend payout and purchase of KPIT shares worth ₹22 crore for ESOP schemes by Employee Welfare Trust, during the quarter.

Kishor Patil, Co-founder, CEO and MD, KPIT, said in a statement, “Software is at the heart of the transformation that the mobility industry is witnessing. KPIT’s position as a leader in this transformation is leading to consistency in performance and long-term visibility of growth. Q2FY23 performance has been better than expectations. We have a healthy pipeline with a couple of mega engagements expected to get closed in the coming 3-4 months. We have thus raised our FY23 growth outlook to 31-32 per cent. The organic growth outlook is 200+ bps higher than the higher end of the 18-21 per cent outlook at the beginning of the year”.

Sachin Tikekar, President and Joint MD, KPIT, said, “Vehicle makers are investing heavily to develop software defined vehicles (SDVs) of tomorrow. This calls for deep domain expertise and software competence, which KPIT brings to the table. We are seeing the result of this and thus witnessing increased traction with our strategic clients. The supply-side constraints are gradually moving in the right direction with attrition numbers consistently on the decline. We are very excited with the addition of Technica to the KPIT family with the closing effected in October 2022.”

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Published on October 19, 2022