KPIT Technologies Sees 52% Surge in Profits Amidst Optimistic Outlook

KPIT Technologies reported a 52% increase in net profit to Rs 204.2 crore for the March 2024 quarter, driven by higher revenue growth and profit margins. Revenue rose 24% from the previous year. The company aims for 19-22% growth in the top line and maintains an operating profit margin at 20.5%.

Auto industry-focused KPIT Technologies on Monday reported a 52 per cent jump in its net profit to Rs 204.2 crore for the March 2024 quarter, attributed to higher revenue growth and profit margins.

The Pune-headquartered company had previously posted a post-tax net of Rs 134 crore in the same quarter last year.

Its revenue grew 24 per cent to Rs 1,364.6 crore from Rs 1,097.6 crore, with co-founder and CEO Kishor Patil expressing confidence in the fiscal guidance.

The company now aims for 19-22 per cent top-line growth, slightly improving the previous expectation of 18-22 per cent, while maintaining its operating profit margin guidance at 20.5 per cent, despite achieving 21.1 per cent this quarter.

Patil noted that the company has not seen any negative impact on its business despite a slowdown in EV sales, and highlighted the role of KPIT’s solutions in managing rising costs from aggressive Chinese competitors.

Asia is expected to drive the highest growth, with China being the third largest market in the continent after Japan and India.

KPIT also supports internal combustion and hybrid vehicles, with growing contributions from the commercial vehicle segment expected in the future.

The company’s stock rose 3.12 per cent to Rs 1,851.75 apiece on Wednesday, outperforming a 0.35 per cent drop in the benchmark index.