KPIT Tech Net Profit Up 38.6% YOY

A major automotive software service provider, KPIT Technologies has reported net profit growth of 38.60% to Rs 111.58 crore from Rs 80.5 crore in the corresponding quarter a year ago.

The earnings have come in higher than the market analyst estimates. KPIT Technologies reported a 7.2% rise in net profit for the quarter ended March 2023 at Rs 111.6 crore against the net profit of Rs 104 crore in the December quarter of last fiscal. Revenue climbed 11% to Rs 1017.3 crore in the last quarter against Rs 651.7 crore for the December 2022 quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) climbed to Rs 194.25 crore in the last quarter against Rs169.86 crore in the December 2022 quarter. In FY 24, the firm expects constant currency revenue growth in the range of 27% to 30%. EBITDA margins are likely to be in the range of 19% to 20%.

The IT firm reported a consolidated net profit of Rs 111.6 crore in the March 2023 quarter (Q4 FY23), up 38.60 per cent from Rs 80.5 crore in the corresponding quarter a year ago. The company's revenue from operations stood at Rs 1017.36 crore in Q4 FY23, a year-on-year (YoY) growth of 56.09 per cent from Rs 651.76 crore in Q4 of FY22.

On an annual basis, revenue zoomed 39% to Rs 3365 crore in FY23 against Rs 2432.38 crore in the previous fiscal. Net profit rose 40% to Rs 386.86 crore in FY23 against Rs 276.24 crore in FY22.

KPIT, also announced its partnership with Honda to realize the journey of Honda's Software Defined Mobility (SDM). With Honda's next-generation software architecture and control safety technology and KPIT's deep domain & software expertise in the areas of Autonomous Driving, Vehicle Electrification, In-Vehicle Infotainment systems and Platform Software, Honda will continue to provide various services and enhanced value to customers around the world in the future.

The company reported maximum revenue of $61.40 million from Europe in terms of geographical breakup, followed by US (reporting $ 44.66 million) and Asia ($17.74 million).

Lastly, the board of directors of the company recommended a final dividend at Rs 2.65/- per equity share of Rs 10 each (26.5%) for FY 2022-23.

The latest market price of KPIT Technologies stock closed at Rs 904.80 per share, it rallied by 6.20% over previous day's closing. In last one year, it has jumped up by 74.15% while over three years it has skyrocketed to 1630.02%.