KPIT Technologies reported a 20.4% year-on-year increase and a 7.2% sequential growth in net profit, totaling Rs 187 crore for the December quarter. The sequential profit increase excludes a one-time impact from the previous quarter. KPIT saw an 8.2% quarter-on-quarter decline in net profit during the third quarter, this was mainly due to receiving a Rs 45 crore exceptional income from an insurance claim during the second quarter of FY25. The company reported an EBITDA margin of 21.1% for the quarter. Additionally, KPIT maintained its revenue growth outlook at 18-22% and raised its EBITDA guidance for FY25 to over 21%, up from 20.5% guided earlier.
KPIT revenues for the quarter was at $176 million, with a constant currency growth of 17.4% and a dollar revenue growth of 18.1% year-on-year. Kishor Patil, co-founder, CEO, and Managing Director of KPIT, stated that the third-quarter revenues aligned with their annual revenue outlook, and operating profit improved due to a shift in the revenue mix and productivity enhancements, despite challenges from currency fluctuations. The company has significantly moved operations offshore, contributing to improved profitability. Looking ahead, the fourth quarter is expected to show further productivity improvements and a significant increase in the pipeline.
According to Sachin Tikekar, President and Joint Managing Director of KPIT, Asia is anticipated to be a growth driver for the company this year and in the years to come, with a focus on balanced growth across Europe, the US, and Asia. During the December quarter, growth was driven primarily by the Asia region and the passenger car sector, particularly in the powertrain and connected vehicle domains. The US and Asian markets each accounted for 46% of the revenues.
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KPIT has entered the Chinese market, spending a year understanding it and engaging with Chinese companies. With various restrictions now affecting China in the technology sector, KPIT sees this as an opportunity to collaborate with these companies. Patil noted that the world has much to learn from China, particularly as it holds a significant amount of intellectual property. He highlighted that China is advanced in connected and autonomous vehicles due to its extensive data collection.
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