Latest News | KPIT Tech Q3 Net Zooms 64 Pc to Rs 70.3 Cr

Mumbai, Feb 1 (PTI) Auto industry-focused KPIT Technologies on Tuesday reported a 64 per cent jump in net profit to Rs 70.3 crore for the December quarter.

The Pune-based company had reported a post-tax profit of Rs 42.974 crore in the year-ago period.

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Its total income increased to Rs 631 crore from Rs 523.9 crore the year-ago period and Rs 602 crore in the preceding quarter.

Its co-founder, managing director and chief executive Kishor Patil said last year, the performance was impacted by the COVID pandemic.

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For the reporting quarter, the company has been able to widen its operating profit margin to 18.5 per cent from 17.6 per cent in the year-ago period, resulting in profit growth, he added.

The company has upped its margin guidance to 18 per cent for the full fiscal 2021-22, courtesy of this growth, from the earlier 17 per cent target, he said, adding that higher offshoring work to India, higher realisation and quality of revenues are helping it achieve higher profitability.

It could widen the margins despite adding 1,100 people during the quarter, Patil said, adding that the overall headcount now stands at over 7,800.

The company had net cash of over Rs 1,000 crore as of the quarter-end and is evaluating acquisition options, Patil said.

The board has also proposed an interim dividend of Rs 1.2 per share, he said, adding that it will soon be taking the payout ratio to 35 per cent of net profits.

The company scrip closed 3.70 per cent down at Rs 622.60 apiece on the BSE on Tuesday, as against gains of 1.46 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)