On January 30, 2024, KPIT Technologies Limited (BSE, NSE: KPITTECH)
announced its Q3 2023-24 results, registering a Net Profit Growth in Q3 FY24, of 55% YoY, and Revenue growth of 31.5% YoY.
Table of Content
KPIT Technologies Q3 Result Takeaways
Here are the key highlights of Q3 results for KPIT Technologies Limited with some figures mentioned in $ and others in ₹, as released by the Company:
- The Company recorded a $ Revenue growth of 35.0% YoY, with 4.3% growth in terms of constant currency, and 2.7% growth on a QoQ basis.
- The EBITDA for Q3 FY24 stood at 20.6%, a rise of 200 bps YoY. EBITDA growth on a YoY basis was at 52.2% and QoQ growth was at 7.7%.
- The Company’s Q3 FY24 Net Profit stood at ₹1,553 Mn, with YoY PAT growth at 54.6%, and QoQ growth at 10.3%.
- The Company witnessed the closure of $189 Mn worth of engagements in the
- Quarter and a robust pipeline spanning all practices.
Additional Read: Q3 Results Dashboard
Optimal Q3 Performance
In Q3 FY24, the Company witnessed valuable performance metrics, and the highlights of these are mentioned below:
- Sequential growth in terms of constant currency was recorded at 4.3%, driven by Autonomous, Powertrain, and Connected sectors.
- In Q3 FY24, the Company’s growth was enhanced by Passenger Vehicles, in the markets of Asia and Europe. The cross-currency effect due to the higher mix of the JPY, EURO, and GBP revenues (~63% of the Total Revenue) affected the reported $ Revenue.
- The Company’s Q3 FY24 Profit After tax or PAT went up 5 4.6% YoY. Other income was higher relative to the last quarter, backed by gains on hedging contracts. The ETR was marginally higher than the last quarter, aligned with the Company’s annual estimate of the ETR.
- The Net Cash Balance of the Company at the end of Q3 FY24 was ₹8.29 billion, showing a net cash addition of ₹3.1 billion. The DSO at the end of Q3 FY24 was registered at 46 Days. The EBITDA margin increased to 20.6% (20% last quarter) and was up by ~200 bps YoY, post the addition of ~600 new employees and quarterly promotions. The expansion of the Margin was chiefly driven by improvements in productivity and operating leverage blended with a better-realised rate.
- The Company has displayed steady growth in Revenue over 14 successive quarters, and shown steady growth in EBITDA in 14 successive quarters.
The Management’s Take on Q3 Results
The leading management of KPIT Technologies Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company continuously focuses its strengths on key technologies, the mobility industry, major clients, and unique talent.
- The Q3 FY24 Revenues have delivered more than expected on the profitability front.
- The Company has a healthy pipeline of ongoing projects and a consistency of demand aids Company growth.
- The Company is witnessing broad-based traction spread over clients, technologies, sub-verticals as well as geographies.
- The Company, with a view toward future growth, is working on expanding investments and strategic collaborations.
- The attrition has continued to go down over the last four quarters, with historically low levels being reached currently.
Q3 – New Horizons
KPIT Technologies witnessed new engagements in the quarter, with the Company’s TCV of new engagements earned worth $189 Mn. Here are the highlights:
- A top Asian car manufacturer chose KPIT Technologies for several engagements in the Vehicle Engineering and Autonomous Driving domains.
- Strategic collaborations were made in the domain of System Engineering for Body Electronics domain for a top European car manufacturer.
- Many strategic collaborations in the E-Powertrain domain were undertaken for top European OEMs in.
- Other partnerships between the Company and European and North American vehicle manufacturers were executed.
Other Key Announcements
As part of the quarterly result report, the Company made some pertinent announcements, mentioned below:
- KPIT Technologies announced its strategic investment in N-Dream AG, a key player in the space of casual car gaming.
- KPIT won accolades like the Digital Impact Awards (Silver) 2023.
- KPIT Technologies has unveiled its breakthrough Sodium-ion battery technology to mitigate Lithium dependency.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Mn except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q2 FY 2023-24 | Q3 FY 2022-23 |
| Revenue from Operations | 12,569.62 | 11,991.57 | 9,171.15 |
| Total Income | 12,743.49 | 12,077.51 | 9,381.74 |
| EBITDA | 2,585.06 | 2,399.34 | 1,698.65 |
| EBITDA Margin | 20.6% | 20.0% | 18.5% |
| Profit Before Tax (PBT) | 2,115.87 | 1,877.37 | 1,393.74 |
| Profit After Tax (PAT) | 1,567.54 | 1,414.01 | 1,040.57 |
Additional Check: KPIT Technologies Share Price
Q3 FY24 Result Summary
KPIT Technologies Limited is a company that works as an independent collaborator by providing software integration systems to leading players in the automotive industry. The Company is a global partner in the Mobility ecosystem and supports customers in producing software-defined vehicles. With 12000 plus “automobelievers” spanning the globe, with expertise in AI, embedded software, and digital solutions, KPIT speeds up its clients’ execution of next-generation technologies for future mobility-readiness. The Company boasts engineering units in the USA, Europe, China, Japan, Thailand, and of course, India.
With 51 patents and innovations awards under its belt, the Company has reported yet another successful quarter with its Q3 FY24 results with major positive movement in its cash flow. Profitability has been higher than the Company’s own predictions and this bodes well for the quarters to come. Investment and partnerships are the core of the business as the Company has reported a profitable quarter on the way to future optimism.
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Source: KPIT Technologies Investor Presentation on BSE
