KPIT Technologies Q1 net profit rises 41% on higher revenues, wider margins

KPIT Technologies, the auto industry-focused technology company, on Tuesday reported a 41 per cent growth in the June quarter net profit at Rs 85.4 crore on higher revenues and wider profit margins.

The Pune-headquartered company reported a 21.41 per cent growth in the total income at Rs 701 crore for the reporting quarter as against Rs 577 crore in the year-ago period.

Its operating profit margin widened to 19.4 per cent as compared to 17.3 per cent in the same period a year ago. In the March quarter, the same stood at 18.6 per cent.

The company's Co-Founder, Chief Executive Officer and Managing Director Kishor Patil said the ongoing business momentum makes him confident of attaining the earlier guidance of registering an 18-21 per cent revenue growth in FY23.

He said the margins will be impacted by up to 3 per cent in the September quarter as the annual wage hikes get implemented during the period.

The company hired 900 people during the June quarter to take its total headcount to 9,183 and will continue recruiting more as it sees the clarity on the business front, Patil said, adding that it will cross the 10,000 employees mark in the second quarter of this fiscal.

Attrition is also trending down and will be coming down to the aspirational level of 16 per cent in another two quarters, Patil said.

It reported a total contract value of USD 155 million for the reporting quarter, coming from across its areas of operation.

Its head of corporate finance Priya Hardikar said the company will be looking at acquiring niche tech companies complementing its offerings and make best use of the over Rs 1,060 crore of cash balances it is carrying.

The company's scrip closed 1.88 per cent down at Rs 520.60 apiece on BSE.