On October 30, 2023: KPIT Technologies (BSE, NSE: KPITTECH) announced its Q2 2023-24 financial results, clocking CC Revenue Growth of 51.7% YoY and upgrades Revenue Guidance up to 37%+. The EBITDA outlook has increased as well, giving a boost to positivity with the Q2 results.
Table of Content
Key Highlights
Overview of Performance Metrics – Revenues
- For Q2, CC Revenue growth of 51.7% Y-o-Y was witnessed.
- In Q2, Revenue growth in CC stands at 9.0% Q-o-Q
- In Q2, there is also broad-based growth seen across practices and verticals, and largely, this is led by the Passenger Car vertical, Strategic Accounts, Electric Powertrain, and Digital Connected Solutions practices.
- At the end of Q2, Net Cash stands at ₹512 crore, with Acquisition Payouts of ₹98.7 crore (Technica and FMS) and dividend payout equal to ₹71.8 crore.
Additional Read: Q2 Results Dashboard
EBITDA and Net Profit Overview
- In Q2, the EBITDA stands at 20% post hikes in wages. This translates to 7% Growth YoY and 9.1% QoQ.
- PAT has grown 68.7% YoY.
- The EBITDA Margin was maintained at 20% post the full quarter effect of wage hikes in Q2. The gross impact of wage hikes stands at 250 bps, offset by growth in revenue and net realisation improvement.
Other Result Highlights
- In terms of the global employee headcount, this crossed 11,970 in Q2.
- The company is placing a healthy focus on the quality of talent, as well as managerial and technical leadership.
- New engagements achieved in the quarter include a strategic multi-year collaboration in the autonomous driving domain for a top European car manufacturer, many engagements in the electric powertrain, both in autonomous domains and related areas, for a top European car maker, and a strategic programme in the powertrain for a leading US car maker.
- In Q2, KPIT Technologies won the Certificate of Achievement Award (2023-24) from Nasscom.
Management Commentary
The Co-Founder, MD, and CEO of KPIT Technologies, Kishor Patil, had some insights on the results and these are shared below:
- The company is pleased with the delivery of yet another quarter that is aligned with the company’s performance over the last 3 years.
- Medium-term business basics and drivers for growth remain unchanged.
- A softer macroeconomic atmosphere is being witnessed due to geopolitical circumstances and global uncertainty, compelling the company ton keep a watch on the effect of these factors on clients and business requirements.
- The CC Revenue Growth outlook for FY23-24 is raised to 37%+ and the EBITDA to 20%+.
The President and Joint MD of KPIT Technologies, Sachin Tikekar, had some reflections to add, indicative of the following:
- Attrition is moving in the right direction.
- Relationships with key clients continue to get wider and deeper, ensuring strategic engagement.
- The company’s focus on commercial vehicles will sharpen in the near term.
- The focus of the company is also on the effective delivery of complex large engagements and the company targets zero-defect delivery.
Also Read: KPIT Technologies Share Price
Financial Results
Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr):
| Metrics | Q2 FY2023-24 | Q2 FY2022-23 |
| Revenue from Operations | 1199.15 | 744.83 |
| Total Income | 1207.75 | 754.32 |
| EBITDA | 239.93 | 138.16 |
| Profit Before Tax | 187.73 | 109.12 |
| Profit After Tax | 141.40 | 83.56 |
About KPIT Technologies
KPIT Technologies is an Indian multinational company that commenced operations as the erstwhile KPIT Infosystems. The founders, Ravi Pandit and Kishor Patil are chartered accountants by profession. The firm provides product engineering and embedded software services to enterprises in the automotive industry and the automobile sector. Famously known as KPIT, the company has its headquarters in Pune, India. The company also has research and development units in the USA, Europe, China, and Japan, as well as its initially opened ones in India. The company’s belief is that automobiles are now “software on wheels” and it continuously strives to make innovative solutions for its clients. The company has quite a few patents to its name and has won awards and published research papers.
Source:
KPIT Investor Policies, Reports, and Filings
