The Pune-based IT company’s revenue rose 24.3% YoY to Rs 1,364 crore in Q1FY25 compared to Rs 1,097.6 crore a year ago. It grew 3.5% over the previous quarter’s revenue at Rs 1,317.8 crore.
“We have started the year on a positive note with an all-round robust performance. While the mobility industry is going through certain pressures on the demand and profitability fronts, we are proactively investing in creating relevant large, differentiated offerings to support our clients reduce their costs and time-to-market. We are also investing in adjacencies and newer geographical markets. We expect creation of meaningful growth opportunities via both these investments and continue with the growth momentum, paving way for a fair demand visibility in the medium-term,” said Kishor Patil, cofounder, chief executive and managing director, KPIT.
The growth was led by a rise in passenger cars revenue which was up 31% on year and over 5% quarter-on-quarter (QoQ). Business unit-wise growth was broad-based across feature development and integration, growing 22.5% (2% QoQ), architecture & middleware consulting rising 20.5% (13.7% QoQ) and cloud-based connected services growth at 28.2%, which declined marginally 0.6% on a QoQ basis.
Geographically, KPIT’s revenue grew faster in Europe and Asia at 24.8% and 59.4% YoY and 3.3% and 13.2% QoQ, respectively. US contracted sequentially by 1.6% while increasing 3.5% from a year ago.
Discover the stories of your interest
In dollar terms, revenue was up at $165 million with 23.1% YoY and constant currency (CC) growth of 24.8% YoY with growth led by Middleware, Powertrain and Asia.Its deal wins during the first quarter stood at a total contract value (TCV) of $202 million.
Operating margin improved to 17.3% in Q1FY25 from 16.7% in the previous quarter and 15.9% in the year-ago period.
Its total workforce in the April to June period increased by 397 with total 13,253 employees as on June end.
The company also announced the merger of German-based Future Mobility Solutions GmbH (FMS) with its wholly-owned step-down subsidiary KPIT Technologies GmbH, which has an average employee strength of 426. The company is engaged in embedded software solutions for the mobility industry. There will be no change in shareholding pattern of KPIT India due to this merger.
FMS, a German wholly-owned step-down subsidiary of KPIT India with average employee strength of 99, is engaged in software and feature development in autonomous driving, ADAS & vehicle safety and integration & validation. KPIT first announced the acquisition of stake in FMS in September 2021 in three tranches.
Additionally, it acquired a 13% shareholding in N-Oream AG (N-Dream) “to take the total shareholding of KPIT to 26% in N-Dream, a cloud-based game aggregation platform company, based in Switzerland, with an option to increase the shareholding further,” the company said in an exchange filing.
On Wednesday, KPIT’s shares rose over 3% to end at 1850.45 per share on a flat BSE Sensex which ended 0.24% weaker from the previous close.
