Pune-headquartered software major KPIT Technologies (KPIT), has announced its financial results for the first quarter of FY2023. The company reported revenue of Rs 701 crore, up 21 per cent YoY, net profit of Rs 87 crore, up 45 per cent YoY.
The company says that sequential it saw sequential growth of 6 per cent led by electric powertrain and architecture and middleware domains. The growth steered was by the passenger car vertical.
Operating efficiency, net realisation improvement and revenue growth leading to consistent improvement in margins. It attributes the healthy growth in net profit that was aided by improvement in operating margins and higher other income. Net cash at quarter end was Rs 10.6 billion, which also marked the 14th consecutive quarter of increase in net cash and healthy cash conversion.
Kishor Patil, Co-founder, CEO and MD, KPIT said, “The vehicle manufacturers are aiming to earn revenues over the life of the vehicle for sustainable growth. This change will be enabled by CASE (connected, autonomous, shared and electric) and centralised architecture programs, essentially software driven vehicles. KPIT is uniquely positioned as a software integrator, helping global OEMs accelerate this journey. We have started the year on a positive note with an all-round performance, with growth in-line with our plan and healthy margin expansion, despite cross-currency headwinds. We remain optimistic on the overall growth environment”.
Sachin Tikekar, President and Joint MD, KPIT said, “It has been our goal to uphold all our client commitments and help our clients become successful, by leveraging technology. This relentless focus on our strategic clients continues to yield great results, resulting in larger, strategic engagements. Supply side pressures continue to persist, albeit at an eased pace. We have nurtured the existing partnerships and formed new ones with global universities to help attract global talent and aid retention by enabling career growth opportunities to our employees, with focused educational programs”.
The company says it has been successfully improved its attrition rate to 20-25 per cent for its overall strength and a healthy 15-16 per cent on its top level talent. The quarter also marked the company adding over 900 employees to its team, which is among one of the highest addition to employee strength. See improvement in ability to hire people, see attrition going down, especially top lock people attrition has gone down. Responding to a query on the company’s expansion plan, Patil said that the company will be open to new M&A (mergers and acquisitions) but “will look at niche technology which adds value to its product offering and fits its strategy.” KPIT also plans to expand its employee strength to over 10,000 people by the coming quarter or next.
It has also won a multi-year TCV of $155 million (Rs 1,236 crore) during the quarter.