KPIT Technologies surge 8% as Q4 profit jumps 48%: Key highlights

KPIT Technologies shares surged up to 8% on Monday after the company reported an impressive 48% jump in profit after tax (PAT) for the March quarter of FY 2023-24.

KPIT Tech shares hit an intraday high of ₹1,529.4 per share, up 7.97% on the NSE, following strong Q4 results. The stock settled at 6.59% higher at ₹1,509.75 apiece extending the rally for the third straight day.

KPIT Technologies posts 48% jump in net profit

Mid-sized IT services company KPIT Technologies reported a 48% jump in consolidated PAT at ₹165.91 crore in the March quarter of FY 2023-24 compared to ₹111.58 crore in the year-ago period.

Revenue from operations jumped 29% to ₹1,317.8 crore in the March quarter from ₹1017.36 crore in the year-ago period.

“Growth was led by middleware, connected and autonomous domains. Growth was broad based across geographies, led by Asia. Both passenger cars and commercial vehicle verticals had healthy growth,” KPIT Technologies said in an investor presentation.

Its EBITDA (earnings before interest, tax, depreciation and amortisation) grew 40.5% YoY and 5.6% QoQ, post full quarter cost of last quarter people additions and quarterly promotions. Rupee appreciation as compared to Q3FY24, impacted EBITDA by around 30 bps, the company said.

KPIT Technologies said that EBITDA margins were at 20.7% in the March quarter.

Other income was lower as compared to last quarter due to conversion losses on foreign currency denominated assets, especially Euro and Yen denominated.

KPIT reported other income of ₹12.8 crore for the March quarter against ₹15.5 crore in the December quarter.

Total contract value of new engagements won during Q4FY24 stood at $261 million.

KPIT Technologies revenue growth guidance

KPIT Technologies expects a revenue growth of 18-22% for FY 2024-25. Apart from its double digit revenue growth guidance in FY25, KPIT Technologies FY25 margin guidance is projected at an upside of 20.5%.

Kishor Patil, Co-founder, CEO and MD, KPIT said, “We have consistently delivered 15 sequential quarters of healthy growth in revenues and operating profits. Software content inside and outside the vehicle is growing in areas of alternative fuel technologies, autonomous and connectivity.”

Global OEMs are pledged to changing their business model, according to Patil.

“Basis committed investments by our strategic clients, a strong pipeline and solid wins of $261 million in Q4, we continue to witness robust demand.”

“We start FY25 on a strong footing and expect to deliver CC revenue growth of 18%-22% with EBITDA margins of 20.5%+,” he said.