KPIT posts Q1 profit at Rs 31 cr
Technology firm KPIT on Friday posted a consolidated net profit of Rs 31 crore for the June 2019 quarter as against Rs 30.9 crore in the preceding three-month period. Its revenue from operations was at Rs 505.7 crore for the quarter under review as compared to Rs 501.2 crore for January-March 2019, according to a regulatory filing.
The numbers are not comparable on year-on-year basis. Last year, CK Birla Group-owned Birlasoft and KPIT Technologies announced that they will merge and then split into two publicly-traded companies to create two specialised IT players. After the demerger, the engineering business was incorporated on January 8, 2018, and listed on the BSE and the NSE as KPIT Technologies in April 2019.
"Software growth in Automotive and Mobility will comprehensively outpace the vehicle sales growth in the coming years. "The mobility world is embracing software faster than ever before and we believe, we have an exciting and larger role in the mobility ecosystem, in the coming years," KPIT co-founder, Chairman and Group CEO Ravi Pandit said.
Kishor Patil, co-founder, CEO and MD of KPIT, said the company started the new year on a positive note with industry-leading revenue growth and improved profitability. "We continue to sharpen the focus on our verticals and practices. We remain committed to growth and profitability improvement and are confident of maintaining the momentum for the remainder of the year," he added. At the end of the first quarter, KPIT's net cash stood at Rs 181 crore as compared to Rs 90 crore at the end of last quarter.
During the quarter, the company sold its existing hardware dominated business pertaining to ITS and AIS 140/VTS, to Minda Industries Ltd. "The upfront consideration received for the same is Rs 170 million which is recorded as income under exceptional items," it said.
Also, during the quarter, the company paid USD 2.8 million (Rs 19.5 crore) to Birlasoft towards the settlement for Copart case. Sparta (a 100 per cent subsidiary of Birlasoft) paid the amount to reach an out-of-the court settlement with Copart and the pending case is now dismissed by the court.
"This is reflected as expense under exceptional items. There is no further exposure on Copart for KPIT and Birlasoft and there is no other customer-specific indemnity given by KPIT to Birlasoft," it said.
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