KPIT Tech Q1 net profit jumps 52%; ups revenue growth guidance for FY25

Auto industry-focused KPIT Technologies on Monday reported a 52 per cent jump in its net profit to Rs 204.2 crore for the March 2024 quarter on higher revenue growth and profit margins.

The Pune-headquartered company had posted a post-tax net of Rs 134 crore in the year-ago period.

Its revenue from operations grew 24 per cent to Rs 1,364.6 crore from Rs 1,097.6 crore in the year-ago period, and its co-founder, chief executive and managing director Kishor Patil also sounded more certain about the guidance for the fiscal.

He said the company is now aiming for a 19-22 per cent growth in the top line against the earlier expectation of 18-22 per cent announced earlier.

Patil, however, maintained the operating profit margin guidance at 20.5 per cent even though the company was able to widen the number to 21.1 per cent during the reporting quarter against 20.7 per cent in the March quarter and 20 per cent in the year-ago period.

He said even though the growth rate for EV sales has slowed down, the company is not witnessing any impact on its business and as the pressures on managing costs go up due to aggressive play by Chinese companies, its solutions can be of help.

The highest growth will come from Asia for the business, a senior official said, adding that China is the third largest geography within the continent from a revenue perspective for KPIT after Japan and its home market India.

The senior official also added that the company also serves the internal combustion engine and hybrid vehicles. Patil said that business on the commercial vehicles front is growing and the company expects the segment to contribute significantly higher in the future.

The company scrip closed 3.12 per cent up at Rs 1,851.75 apiece on the BSE on Wednesday against a 0.35 per cent correction on the benchmark.