KPIT Technologies Q4FY23 net profit up 41.5% on recent mega deal wins

Mid-cap IT firm KPIT Technologies has reported a net profit of Rs 111.6 crore in Q4FY23, an increase of 41.5 per cent year on year (YoY) owing to recent mega deal wins and strong growth in the key automotive and mobility vertical.

Revenue from operations grew around 56 per cent YoY to Rs 1017.3 crore in the quarter ended on March 31. The growth is led by “strategic accounts, middleware and architecture, autonomous and diagnostics” segments, the company said. The quarter has also witnessed strategic new engagement closures.

The total Contract Value of new deals won during Q4 FY23 stands at $423 million, which includes the $ 250 million deal with Honda. The company has also reported an EBITDA margin expansion of 60 bps for the quarter led by revenue growth and operational efficiencies. 

 

For the full year FY23, revenue from operations increased around 21.9 per cent to Rs 8,013.6 crore compared to Rs 6,569.7 crore in FY22. Net profits also jumped 22 per cent in FY23 to Rs 1,174.1 crore from Rs 960.6 crore the previous year.

The company expects its constant currency (CC) revenue growth in FY24 to be in the range of 27-30 per cent. Guidance for EBITDA Margin is estimated between 19-20 per cent.

“On the back of a solid quarter and year performance and basis of recent mega engagements and committed spending on software by our Strategic Clients, we are witnessing robust demand and increased visibility for the next 3-4 years. We are focused on helping our clients create new business models to transform their business. We start FY24 on a strong footing and expect to deliver CC revenue growth of 27%-30% with EBITDA margins between 19%-20%,” said Kishor Patil, Co-founder, CEO and MD of KPIT.

The board has recommended a final Dividend of Rs 2.65 per share. The total FY23 dividend stands at Rs 4.10 per share. 

The global headcount of the Pune-based firm has crossed 11,000 people as of March 31. The company has reported that its global hiring outlook remains strong “for cutting-edge client engagements.”

Sachin Tikekar, President and Joint MD, KPIT said: “We start FY24 on the back of closure of key strategic, long-term engagements with Q4 wins TCV of $ 423 Million. We will focus on alignment and collaboration of practices to address larger problems of our clients through broader technology solutions. We are committed to building scale through a robust competency framework, flawless execution and onboarding the right talent with higher competency. We will channelize our investments towards creating trusted partnerships with our clients to effect greater value creation, in the coming years.”