KPIT Technologies shares plummeted 15% to an intra-day low of Rs 1,393.45 on management commentary about the weak outlook for the automobile industry.
The company’s management pointed out that the automobile industry is under pressure due to regulatory changes and other things. Kishor Patil, Co-founder and CEO of KPIT Technologies said, “The Mobility Industry, specifically the Automotive sub-vertical, has been under pressure to keep up with the changing regulations, reduce the cost of vehicles, and meet demands of the ever-changing consumer preferences in recent times. We continue to prioritise investments in technology and markets ahead of demand to help our T25 clients stay on the cutting edge of technology and competitiveness, the basis on which, we reiterate our revenue growth and profitability outlook for the full year.”
The company’s net profit in Q2 FY25 stood at Rs 203.7 crore, a jump of 44% on year compared to Rs 141.4 crore in Q2 FY24. The company’s revenue from operations came in at Rs 1,471.4 crore in Q2 FY25, an increase of 22.7% on year compared to Rs 1,199 crore in Q2 FY24.
KPIT Technologies in Q1
It reported a 52% jump in its net profit to Rs 204.2 crore in Q1 FY25 on higher revenue growth and profit margins. The company posted a net profit of Rs 134 crore in the year-ago period. Its revenue from operations grew 24% to Rs 1,364.6 crore against Rs 1,097.6 crore in the same period a year ago.
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KPIT Tech Vs Nifty 50
The stock has erased 20% of investors’ wealth in the last five trading sessions. It has dipped almost 14% in the last one month. However, the stock has risen 4% in the last six months. Again, the stock has fallen 3.7% from year to date. It has risen 25% in the past one year.
To compare, the benchmark index Nifty 50 has fallen 0.7% in the last five trading days. It has raised investor’s wealth by almost 6% in the last one month. However, the index has risen 9% in the last six months. The index has given a 12% return from year to date. The index has risen 28% in the last one year.
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