KPIT Technologies on Monday bettered its guidance and reported a 5.8% sequential growth in net profit to Rs 164.4 crore for the March quarter. KPIT’s Ebitda margin was up 160 bps to 20.7%. The company has guided for a constant currency revenue growth of 18-22% and an Ebitda margin of 20.5% plus for FY25. KPIT is an independent software integration partner to the automotive and mobility ecosystem for making software-defined vehicles.

The company reported a constant currency growth of 6.6% q-o-q to Rs 1,317 crore during the March quarter. Ebitda grew by 5.7% to Rs 277 crore. The company reported a TCV of new engagements won during Q4 FY24 at $261 million.

This was the fifteenth consecutive quarter of revenue and Ebitda growth, Kishor Patil, co-founder, CEO and managing director, KPIT said.

It was their best results in the last five years since the company decided to focus on automotive and mobility and their strategy to work with the top 25 clients, investing in new technologies and the focus on electrification, autonomous and connected vehicle space.

KPIT’s growth in FY25 was led by middleware, connected and autonomous domains with broad-based growth across geographies, led by Asia and healthy growth in the passenger car and commercial verticals, Patil said.

Around 75-80% of the company’s business came from SDV projects, with the company working with the top 25 clients and engaged with most of them in some way or other, apart from two to three clients who were still lagging. The company is expected to grow in FY25  in all the areas of autonomous, electrification and connected vehicles, with companies continuing to invest in critical projects, especially the top seven platinum clients and the next set of gold clients. Asia will be a significant growth area with prospects in China, Japan, Korea and India. KPIT was also expanding into industrial and farm equipment for additional growth and getting into adjacent areas.

Global automotive OEMs are continuing to invest in their new SDV programmes and continue to outsource almost 50% of the work, so growth prospects remain unaffected for their company, Patil said. For companies, it was about the competition, and if they were not ready with the products, they could lose market share in future. There will be multiple technologies ranging from electric to hybrids, and companies would like to have a broad portfolio of products, Patil said. 

KPIT is now the largest software integration partner in the automotive domain, with the team growing from 5,000 to 13,000 employees in four and a half years. During the year, the company granted ESOPs for the top 500 key employees and long-term incentives worth Rs 100 crore were given to some employees. The company continued to have high single-digit attrition, the lowest in the industry. Campus hires will be in the four digits this year. As most industries were not hiring, they were getting access to the best talent. 

The KPIT stock rose by nearly 6.57% on Monday to clos at Rs 1,508.50 on the BSE.