KPIT Technologies Q3 results: Profit after tax up 50.6% at Rs 156 crore

Pune-headquartered auto-tech company KPIT Technologies reported a jump of 50.6 per cent year-on-year (Y-o-Y) in its net profit for the third quarter of financial year 2024-25 at Rs 156.7 crore.

The company reported a revenue of Rs 1,257 crore, up 37 per cent Y-o-Y. The auto-tech services player was confident that it will meet its revenue growth guidance for the financial year at 37 per cent. In the second quarter of FY24, the company had upped its revenue guidance expectation for FY24 to 37 per cent from the earlier 27-30 per cent.

The company's order book for the third quarter stood at $189 million, up from $156 million reported in Q2, FY24. Growth was led by the passenger vehicles segment in Europe and Asia, said the company.

“We continue to focus on execution relentlessly and have been consistently reaping the benefits of our focus on the mobility industry, key technologies, key clients, and key talent. The Q3 FY24 revenues have been in line with our expectations, while we have delivered slightly ahead of expectations on the profitability front,” said Kishor Patil, Co-founder, CEO and Managing Director, KPIT.

KPIT's results are opposite to what some of the larger peers have reported. The firm's strategy to focus on the auto segment is paying off.

“Based on our performance so far, robust pipeline, and the consistency of demand driven by new technology investments by our strategic clients, we are confident of meeting our upward revised outlook for the year,” Patil added.

The earnings before interest, taxation, depreciation and amortisation (EBITDA) margins of KPIT rose by 20.6 per cent, up by 200 basis points on a Y-o-Y basis.

"We are witnessing broad-based traction across technologies, clients, sub-verticals, and geographies. We are increasing our strategic engagements in the quest to move towards being trusted partners for our strategic clients," said Sachin Tikekar, President and Joint Managing Director, KPIT.

The total employee count for the company rose by 756 employees and stood at 12,727 this quarter, up compared to 11,971 in the previous quarter.

“As we have seen over the last four quarters, the attrition continues to fall and is now at historically low levels. We have significantly moved the needle in our quest for inclusive sustainability across KPIT,” he added.

The company announced an interim dividend of Rs 2.10 per equity share of face value of Rs 10 each, for the financial year 2023-24.