KPIT Tech Q4 Profit Up 49%, Slower Growth Expected in FY25
Apr 29, 2024 19:14
KPIT Technologies reported a 49% jump in Q4 net profit to Rs 165.9 crore, but expects slower revenue growth in FY25. The company's revenue grew nearly 30% in Q4, and it aims for 18-22% growth in FY25.
Illustration: Dominic Xavier/Rediff.com
Mumbai, Apr 29 (PTI) Auto industry-focused KPIT Technologies on Monday reported a 49 pc jump in March quarter net profit to Rs 165.9 crore, helped by a strong revenue growth and widening of profit margins.
The Pune-headquartered company's FY24 net profit grew to Rs 598.51 crore from Rs 386.8 crore in the year-ago period.
For the reporting quarter, its revenues rose nearly 30 per cent to Rs 1,317.8 crore, while the operating profit margin widened 1.7 per cent to 20.7 per cent.
The company announced that it will aim for an 18-22 per cent growth in the topline in the new fiscal, and will get the profit margin number above 20.5 per cent.
About the slower revenue growth target for FY25, and if the company is being conservative, its Co-Founder, Chief Executive and Managing Director Kishor Patil told reporters that while it has been consistently showing growth of over 30 per cent in the last four years, it is also true that many changes are happening in the sector and it has taken a "pragmatic" call on the expectations from the new year.
He said auto original equipment manufacturers the company works with are spending on critical projects and preferring to postpone the work which can be deferred.
However, he added that most of KPIT's work is in core technologies which is critical for them.
The company reported new deal wins of USD 261 million for the reporting quarter.
Patil said the company has formed a new vertical to tap into business opportunities from clients in the industrial and farm equipment sectors, which work adjacent to the auto industry.
It is doubling down on the focus in China and India, he said, pointing that the two countries contribute under 3 per cent of the revenue presently.
In FY25, KPIT expects Asia to be the biggest growth driver, while its traditional geographies of US and Europe will also do well, Patil said.
The company's overall employee count went up to 12,856 at the end of FY24, from 12,727 in the quarter-ago period.
Without specifying the exact number, Patil said the company will make 1,000 offers to graduating engineers in FY25 across the country.
The KPIT scrip closed 6.57 per cent up at Rs 1,508.50 apiece on the BSE on Monday, as against gains of 1.28 per cent on the benchmark.
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