KPIT Technologies Navigates Profit Decline Amid Strategic Investments

KPIT Technologies, focused on the auto industry, reported a 17% decline in net profit due to joint venture losses but saw a 7.9% revenue increase. Investments in product companies are seen as future growth drivers, with strong upcoming contributions expected from Europe and U.S. markets.

Auto industry-focused KPIT Technologies has reported a 17 percent decline in net profit for the September-ended quarter, registering Rs 169.08 crore, attributed to losses in joint ventures and associated entities, according to a regulatory filing.

The Pune-based company's revenue from operations witnessed a 7.9 percent increase to Rs 1,587.71 crore compared to the previous year. Excluding investments in product and solutions companies, net profit stands at Rs 191.8 crore, stated CFO Priya Hardikar. The TCV for new deals reached USD 232 million during the quarter.

Co-founder and CEO Kishor Patil remains optimistic about forthcoming growth, driven by a strong European pipeline and anticipated U.S. market recovery, especially in off-highway vehicle segments. The acquisition of CareSoft Engineering Solutions and strategic investments in AI, digital solutions, and cybersecurity are projected to boost future earnings.

(With inputs from agencies.)