KPIT Technologies says the global IT recession may not hurt business

KPIT Technologies, one of the leading partners for developing software-defined vehicles for the mobility industry, is confident on the near-to-mid term for its business and not worried about the possible recession in the global IT industry.

“The software-defined vehicle there is a substantial commitment from OEMs, and if they don’t invest in it in the long-term their market share comes down. We are cautious and continuously looking at the economic environment. Our current conversation and orders gives us confidence,” says Kishor Patil, Co-Founder, CEO & MD, KPIT Technologies.

Sachin Tikekar, President and Joint MD, KPIT Technologies adds, “The global recession could be true in case of the global IT industry outlook, but in our space (software-defined vehicle), we don’t see the impact of recession or any reduction in customer spending.”

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At present, Asia business accounts for 20 percent of KPIT’s revenue the majority comes from the US and European markets.

In terms of financial performance, KPIT reported consolidated revenue of Rs 744 crore in Q2 FY2023, up 27 percent YoY; net profit also came in higher at Rs 83 crore.

Going forward, the company says it has increased CC revenue growth to 31-32 percent. The company states that its global employee count is nearing the 10,000 mark; attrition easing out and is expected to become better by end-FY2023.

Patil adds, “Software is at the heart of the transformation that the mobility industry is witnessing. KPIT’s position as a leader in this transformation is leading to consistency in performance and long-term visibility of growth. Q2FY2023 performance has been better than expectations. We have a healthy pipeline with a couple of mega engagements expected to get closed in the coming 3-4 months.”

According to Tikekar, “Vehicle makers are investing heavily to develop Software Defined Vehicles (SDVs) of tomorrow. This calls for deep domain expertise and software competence, which KPIT brings to the table. We are seeing the result of this and thus witnessing increased traction with our strategic clients. The supply side constraints are gradually moving in the right direction with attrition numbers consistently on the decline. We are very excited with the addition of Technica to the KPIT family with the closing effected in October 2022.”