Left Menu
Development News Edition

KPIT Tech to focus on auto segment, eyes 18% operating margins

Devdiscourse News Desk | Mumbai | Updated: 22-04-2019 18:35 IST | Created: 22-04-2019 17:45 IST
KPIT Tech to focus on auto segment, eyes 18% operating margins
KPIT Technologies, which will now focus on auto segment alone, is eyeing to up operating margins to 18 per cent in two years from the present 15-16 per cent, and maintain revenue growth, a top official said. Image Credit: Pixabay

KPIT Technologies, which will now focus on auto segment alone, is eyeing to up operating margins to 18 per cent in two years from the present 15-16 per cent, and maintain revenue growth, a top official said. The Pune-based information technology company KPIT underwent a complex process wherein it first merged Birlasoft into itself, and the business got divided into two - Birlasoft which will focus on IT services and KPIT.

"We will continue to grow at 20 per cent as the automotive engineering vertical of the pre-transaction KPIT, but increase the operating margin to 18 per cent in two years," KPIT chairman Ravi Pandit told PTI. He said the margins presently stand at 15-16 per cent, but declined to give an exact number as the company is in its silent period before the announcement of results.

KPIT got listed on the bourses Monday and its promoters also announced an open offer to acquire up to 25 per cent more of the company from shareholders. Pandit said the company plans to branch out into newer areas including commercial vehicles and new mobility companies like Uber and Ola, but added that this will not require significant investments.

At present, it gets 90 per cent of its revenues from embedded software while the rest come from mechatronics. The auto industry is undergoing a transformation of the kind last witnessed only when Ford launched its Model T a century ago and it is a very lucrative time to be in the industry, he said.

There is work happening on driver fewer cars, connected vehicles, diagnostics technology, he said, adding KPIT serves all the top 10 auto brands across the world. The KPIT scrip closed 5 per cent up at Rs 105 a piece on the BSE Monday, as against a 1.26 per cent correction in the benchmark.


TRENDING

OPINION / BLOG / INTERVIEW

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...

Videos

Latest News

2 men held for abducting, attempting to rape girl in Jodhpur

Police have arrested two men for allegedly abducting and attempting to rape a seven-year-old girl in Jodhpur, officials said on Saturday. Jetharam Meghwal 23 and Heeraram Meghwal 27 abducted the girl when she was playing outside her house w...

Deadline for filing returns by individual taxpayers for FY2019-20 extended by a month till December 31: FinMin.

Deadline for filing returns by individual taxpayers for FY2019-20 extended by a month till December 31 FinMin....

K'taka CM holds meeting over rainfall situation in State, Rs 25,000 compensation to affected families

Karnataka Chief Minister B S Yediyurappa held an emergency meeting on Saturday with State Minister R Ashok, Bruhat Bengaluru Mahanagara Palike BBMP Commissioner Manjunatha Prasad at his official residence Cauvery in Bengaluru over rainfall ...

31% adolescents battled extreme anxiety in past few months due to COVID-19, says survey

About 31 per cent surveyed adolescents battled extreme anxiety in the past few months worrying about the impact of coronavirus pandemic on their familys financial status, according to a survey of over 7,300 adolescents from four states of J...

Give Feedback