KPIT Technologies, focused on automative and mobility software services, has reported a 47.2% year-on-year rise in net profit (attributable to shareholders) at Rs 164.4 crore for the fourth quarter ending March 2024.
The Pune-headquartered firm’s profit a year ago stood at Rs 111.6 crore in Q4FY23 and at Rs 155.3 crore in the preceding quarter.

During the quarter, its revenue from operations also increased 29% YoY to Rs 13,178 crore from Rs 10,173.7 crore posted in the same period last year.

“We have consistently delivered 15 sequential quarters of healthy growth in revenues and operating profits…Global OEMs are pledged to changing their business model. Basis committed investments by our strategic clients, a strong pipeline and solid wins of $261 million in Q4, we continue to witness robust demand,” said Kishor Patil, cofounder, CEO and MD at KPIT.

Patil also pointed out that the company has growth at an average of 30% in the last four years.

For FY25, the company expects revenue growth to be in the 18-22% range and EBITDA margin to be at 20.5%. EBIDTA margin for Q4 increased to 20.7%, up from 19.1% a year ago and 20.6% in the December quarter.

“The guidance is after absorbing Rs 100 crore investment through ESOPs and long term investments. Our focus is on giving predictable margins and invest in future growth,” Patil added.Full year

For the full year ending March 2024, KPIT Technologies posted a revenue growth of 44.8% at Rs 48,715.4 crore as compared with Rs 33,650.4 crore in FY23.

Profit stood at Rs 594.5 crore in FY24, up 56% from Rs 380.9 crore last year.

In constant currency terms, the growth was at 39.1%, higher than the company’s increased guidance of 37% (revised in Q2 from 27-30%) for FY24. The company recorded a revenue of $587 million, a 40.4% growth in dollar terms.

The company also declared a dividend of Rs 4.6 a share for the quarter taking the total dividend for the year to Rs 6.70.

Shares of KPIT Technologies jumped after the results announcement to close 6.5% higher at Rs 1508.50 apiece on Monday on the BSE.

Expansion

“There are commercial vehicles there are semi-conductor companies, that is be areas where they are focusing…We are also expanding as we are in terms of industrial and industrial and farm equipment vertical (new segments). We do believe that it’s significant players out there in North America that will also help us to bring up additional growth,” Patil said in a post results call.

Currently over 80% revenue comes from passenger cars and balance from commercial vehicles.

Further, the Patil believes new technologies in terms of AI, data and cloud and the way technology changes are coming into play as vehicles come closer to the production and there are different kinds of services which will be required that will drive the growth.

In terms of geographical growth, Europe continues to be the largest growth driver with about 50% share and 34% growth in Q4, followed by US at 20% with 5.8% growth and Asia with 10% share growing 66.5%. KPIT plans to double down its business with expansion in China, India and newer geographies with Asia being a “significant driver for the next year”.

KPIT Technologies, focused on automative and mobility software services, has reported a 47.2% year-on-year rise in net profit (attributable to shareholders) at Rs 164.4 crore for the fourth quarter ending March 2024.
The Pune-headquartered firm’s profit a year ago stood at Rs 111.6 crore in Q4FY23 and at Rs 155.3 crore in the preceding quarter.

During the quarter, its revenue from operations also increased 29% YoY to Rs 13,178 crore from Rs 10,173.7 crore posted in the same period last year.

“We have consistently delivered 15 sequential quarters of healthy growth in revenues and operating profits…Global OEMs are pledged to changing their business model. Basis committed investments by our strategic clients, a strong pipeline and solid wins of $261 million in Q4, we continue to witness robust demand,” said Kishor Patil, cofounder, CEO and MD at KPIT.

Patil also pointed out that the company has growth at an average of 30% in the last four years.

For FY25, the company expects revenue growth to be in the 18-22% range and EBITDA margin to be at 20.5%. EBIDTA margin for Q4 increased to 20.7%, up from 19.1% a year ago and 20.6% in the December quarter.

“The guidance is after absorbing Rs 100 crore investment through ESOPs and long term investments. Our focus is on giving predictable margins and invest in future growth,” Patil added.Full year

For the full year ending March 2024, KPIT Technologies posted a revenue growth of 44.8% at Rs 48,715.4 crore as compared with Rs 33,650.4 crore in FY23.

Profit stood at Rs 594.5 crore in FY24, up 56% from Rs 380.9 crore last year.

In constant currency terms, the growth was at 39.1%, higher than the company’s increased guidance of 37% (revised in Q2 from 27-30%) for FY24. The company recorded a revenue of $587 million, a 40.4% growth in dollar terms.

The company also declared a dividend of Rs 4.6 a share for the quarter taking the total dividend for the year to Rs 6.70.

Shares of KPIT Technologies jumped after the results announcement to close 6.5% higher at Rs 1508.50 apiece on Monday on the BSE.

Expansion

“There are commercial vehicles there are semi-conductor companies, that is be areas where they are focusing…We are also expanding as we are in terms of industrial and industrial and farm equipment vertical (new segments). We do believe that it’s significant players out there in North America that will also help us to bring up additional growth,” Patil said in a post results call.

Currently over 80% revenue comes from passenger cars and balance from commercial vehicles.

Further, the Patil believes new technologies in terms of AI, data and cloud and the way technology changes are coming into play as vehicles come closer to the production and there are different kinds of services which will be required that will drive the growth.

In terms of geographical growth, Europe continues to be the largest growth driver with about 50% share and 34% growth in Q4, followed by US at 20% with 5.8% growth and Asia with 10% share growing 66.5%. KPIT plans to double down its business with expansion in China, India and newer geographies with Asia being a “significant driver for the next year”.