Latest News | KPIT Q2 Net Profit Rises 28 Pc, Ups FY23 Revenue Guidance

Mumbai, Oct 19 (PTI) Auto industry-focused engineering services company KPIT on Wednesday reported a 28 per cent jump in its September quarter net profit at Rs 83.56 crore, helped by a strong revenue growth.

The Pune-headquartered company also upped its revenue growth guidance for FY23 to 31-32 per cent, saying it does not see a major impact of the current set of macro challenges playing out into its business.

Also Read | Indian Rupee Plunges 61 Paise To Dip to Record Low of 83-Mark for First Time Against US Dollar.

It reported a 17.2 per cent growth on the overall revenues during the reporting quarter at Rs 754.32 crore as against Rs 599.81 crore in the preceding year.

The operating profit margin came at 18.5 per cent as against 17.6 per cent in the year-ago period, and 19.4 per cent in the preceding June quarter. The company said an industry-leading double digit salary hike during the quarter impacted the margin by a couple of percentage points.

Also Read | MediaTek Dimensity 9200 Processor To Debut Next Month.

It is more confident on the margins front going ahead and narrowing the outlook to 18.5 per cent to 19 per cent for FY23, as against earlier target of 18-19 per cent, its co-founder, chief executive and managing director Kishor Patil told reporters.

Patil said a recent 80 million euro acquisition of Technica, which will start reflecting in the second half, will help take the overall revenue growth to up to 32 per cent, and added that without the acquired company's performance, the same would have been 23 per cent, which is still higher than the earlier revenue growth guidance of 18-21 per cent.

The company reported a total contract value of new deals signed during the quarter at USD 142 million, and added that it has a very strong pipeline which includes two deals of USD 100 million and above.

Patil acknowledged that the overall economic conditions continue to be uncertain at present, but motown continues to invest in software defined vehicles and other aspects where the company has offerings, due to which it is more optimistic.

To a specific question on European business, which contributes nearly 40 per cent of the revenues, KPIT's joint managing director Sachin Tikekar said that it is bullish about the market despite the ongoing geopolitical tensions.

Its overall employee base grew to 9,916 at the end of September as against 9,183 three months ago, and Patil said it now possesses the capacity to hire 1,000 people per quarter.

It is expanding its centre in Kochi, and has opened a new facility in Egypt, he said.

The company's scrip closed 1.63 per cent down at Rs 649.50 apiece on the BSE on Wednesday as against gains of 0.25 per cent on the benchmark.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)