KPIT Technologies second quarter results were positively impacted as the company closed two large deals and the number was further aided by a falling rupee.
The company reported net profit of Rs 66.7 crore up 44.69% for the second quarter, from Rs 44.7 crore in the same quarter last financial year. Revenue for the quarter grew by 23.9% at Rs 702.76 crore, from Rs 567.2 crore on a year-on-year basis.
Sequentially (compared to trailing quarter), the company saw its net profit go up by 11% and revenue was up 14.6%.
“We closed two large deals in excess of $10 million during the quarter and have created a robust pipeline of larger deals. This positions us well for stronger H2 performance. To support higher growth and volumes in H2, we are making investments in hiring of senior level industry specialists and on the training & development of the leadership team,” said Kishor Patil, Managing Director & CEO, KPIT.
The company also added that apart from these large deals, they have also started working on another two large deals. Both these deals are in excess of $25 million each. Though we have not formally signed the definitive contracts, we have started the initial work. This gives us the confidence of a better growth in H2 as compared with H1.
The EBITDA margins were 15.49% as compared to 15.86% last quarter. The company said that though the falling rupee should have added around 250 bps to the EBITDA, they have chosen to invest the advantage of a falling rupee back into business.
During the quarter, the company also underwent a brand changing exercise, which meant change in the name of the company. KPIT Cummins will now be known as KPIT Technologies.
Sachin Tikekar, Board Member, President - Strategic Relationships and Business Transformation, KPIT said, “During the quarter both engineering and IT businesses performed well in the APAC region and we are seeing demand traction picking up in Europe. Disciplined focus on verticals and delivering higher value solutions to meet clients’ business agenda, is helping us partner better with our clients.”
He added, “In Q2 FY14 we adopted a new brand that signifies our transformation into a product and technology provider. Toward reaching the $1 billion revenue milestone by 2017, our focus will be on productized solutions, verticalization of go-to-market and deeper penetration into strategic accounts.”
