KPIT Q2 net dips 23.8% to Rs 56.1 cr

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Press Trust of India New Delhi
Last Updated : Oct 19 2016 | 8:57 PM IST
IT consulting and product engineering solutions firm KPIT today posted 23.8 per cent decline in consolidated net profit to Rs 56.18 crore for the July-September quarter.
The Pune-based company had reported a net profit of Rs 73.8 crore for the same period last year, it said in a statement.
Revenues of the company rose by 2.23 per cent year-on-year to Rs 830.9 crore in the quarter under review, KPIT said in a filing to the BSE.
"Over the last one year, we have been investing in growth, specifically in account management and new sales. We are also investing in creation of technologies for software automation, digital technologies and industry specific solutions in engineering and business IT," KPIT co-founder, Chairman and Group CEO Ravi Pandit said.
He added that KPIT is beginning to see the reflection of these efforts into its quarterly numbers and it is confident of seeing more of it in the coming quarters.
The company, at the beginning of the quarter, had stated it to be a flattish quarter, both on the revenues and profitability front.

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"However, we are happy to report better than expected growth during this quarter driven by good momentum in our traditional leadership area of engineering services, higher growth in new areas such as digital technologies and strong traction in our products business. We have also seen good growth in the top customer account during this quarter," the company said.
The key focus continues to be growth momentum, improving operating profitability and continuing investment in building technologies in automation, digital transformation and automotive engineering.
Automotive vertical contributed 40.7 per cent of the company's total revenue for the quarter, registering a quarter-on-quarter growth of 8.88 per cent.
On the other hand, manufacturing vertical (34.8 per cent of total revenue) saw 4 per cent q-o-q decline, utilities (3.3 per cent) saw 23 per cent sequential decline and energy (11.1 per cent of total revenue) registered 1.5 per cent sequential decline in the said quarter.
On a year-on-year basis, revenues from Asia Pacific grew by 14.5 per cent and the US by 2.62 per cent, whereas Europe declined by 9.11 per cent.
At the end of the said quarter, KPIT had 11,666 employees.

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First Published: Oct 19 2016 | 8:57 PM IST

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