KPIT Reports Q2 FY24 Results With CC Revenue Growth Of 51.7% Y-o-Y And Upgrades Revenue Guidance To 37%+

·         Clocks Q2 FY24 Revenue of USD 145.2 MN; CC growth of 51.7% YOY; PAT grows 68.7% YOY

·         FY24 CC Growth outlook increased to 37%+ from 27% - 30% earlier, EBITDA Outlook increased to 20%+ from 19%-20% earlier

·         Marks 13th consecutive quarter of steady revenue and EBITDA growth

NSE: KPITTECH BSE: 542651: KPIT Technologies, an independent software integration partner to the automotive and mobility ecosystem for making software-defined vehicles a reality, announced financial results for Q2 FY24.

Performance overview

§  Q2 FY24 Revenues

o   CC Revenue growth of 51.7% Y-o-Y & $ Revenue Growth of 54.2% Y-o-Y

o   CC Revenue growth of 9.0% Q-o-Q & $ Revenue Growth of 8.4% Q-o-Q

o   Broad-based growth across practices and verticals - Growth led by Strategic Accounts, Passenger Car vertical, Electric Powertrain, Autonomous Driving and Digital Connected Solutions practices.

§  Q2 FY24 EBITDA and Net Profit

o   EBITDA at 20% post wage hikes

o   73.7% Growth Y-o-Y and 9.1% Q-o-Q

o   PAT Grows 68.7% Y-o-Y

o   EBITDA margin maintained at 20% post full quarter impact of wage hikes during the quarter. Gross Impact of wage hikes was 250 bps which was offset by revenue growth and net realization improvement

§  TCV of new engagements won during Q2 FY24: $156 million

§  Talent

o   Global employee count crosses 11970

o   Strong focus to improve quality of incoming talent; Focus on technical and managerial leadership

Commenting on the performance of Q2 FY24, Kishor Patil, Co-founder, CEO and MD, KPIT said, “We are delighted to deliver another quarter, consistent with our robust performance over the last 3 years. Our medium-term business fundamentals and growth drivers remain unchanged. While the geopolitical situation and economic uncertainty across geographies is leading to a softer macro environment, we keep a watchful eye on the impact on our clients and their business priorities. Our clients remain committed to making investments in newer, relevant technologies. Basis our performance so far and near-term visibility, we raise our CC revenue growth outlook for FY24 to 37%+ growth and increase EBITDA margin outlook to 20%+.”

Sachin Tikekar, President and Joint MD, KPIT said, “Our relationships with our Strategic Clients continue to get deeper and wider, leading to increased strategic engagements. We will sharpen our focus further on commercial vehicles in the near term. Attrition continues to move in the right direction. As we focus on effective delivery of complex large engagements, we continue to lay emphasis on zero-defect delivery. We are progressing well on co-creation of the sustainability roadmap with our employees. We are happy on integration of the acquired entities and are on track for achieving stated medium-term strategic objectives.”

About KPIT:

KPIT Technologies is a global partner to the automotive and mobility ecosystem for making software-defined vehicles a reality. It is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 11000+ automobelievers across the globe specializing in embedded software, AI, and digital solutions, KPIT accelerates its clients’ implementation of next-generation technologies for the future mobility roadmap. With engineering centers in Europe, the USA, Japan, China, Thailand, and India, KPIT works with leaders in automotive and mobility and is present where the ecosystem is transforming.

For more details visit www.kpit.com