• June 14, 2024

Following The Release Of Solid Financial Results For The March Quarter Of FY23, KPIT Technologies’ Share Price Increased By 7.2%

Indian technology company KPIT Technologies saw a 7.2% increase in share price to a high of INR 914.50 after reporting a 10.93% YoY increase in operating revenue to INR 1,107.4 crore in the March quarter, up from INR 651.7 crore in the same period last year. 

464,930 shares were exchanged on the BSE during the session, above the two-week average of 1.08 lakh shares and the company’s market capitalization of INR 24,804 crore. KPIT Technologies’ share price is currently trading 107.8% higher than its 52-week low of INR 440 whilst trading 3.3% lower than its 52-week high of INR 946.50.

KPIT Technologies’ profit for the March quarter was INR 111.58 crore, increasing 38.5% YoY from INR 80.58 crore for the same time in 2016. EBITDA for the company increased from INR 121.3 crore in the same quarter last year to INR 194.2 crore in the March quarter, growing by 60% YoY.

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The company credited increased sales and operational efficiencies for the EBITDA margin expansion of 60 basis points for the quarter. It further stated that Depreciation reflected the effects of Purchase Price Allocation connected to the Technical Acquisition, whilst Finance Costs reflected the effects of Deemed Interest on payments related to deferred distributions.

Profit after tax for KPIT Technologies in FY23 was INR 386.8 crore, increasing 40% year over year from INR 276.2 crore in FY22. The company’s operating revenue increased from INR 2,432.38 crore in FY22 to INR 3,365 crore in FY23. 

KPIT Technologies’ revenue from operations increased 10.9% on a quarter-over-quarter basis to INR 1,107.4 crore in the March quarter from INR 917.1 crore in the December quarter. The March quarter’s earnings after tax increased 7.2% QoQ to INR 111.58 crore from INR 104.05 crore, which was the quarter before.

KPIT Technologies’ other income during the March quarter showed a loss of INR 5.6 crore as opposed to a profit of INR 21 crore in Q3 of FY23. The rupee’s decline against the Euro and the Pound was cited by the corporation as the reason for the higher revenue in Q3FY23.

Co-founder, CEO, and Managing Director of KPIT Technologies Kishor Patil expressed confidence in the future success of the business. For eleven quarters in a row, we constantly generated operational profits and increased revenue. 

We are seeing strong demand and greater visibility over the next three to four years as a result of strong quarter and year performance, recent major engagements, and committed expenditure on software by our Strategic Clients. 

To transform our client’s businesses, we are committed to assisting them in developing new business models. We are off to a solid start in FY24, and we anticipate CC revenue growth of 27% to 30% with EBITDA margins of 19% to 20%,” he said.

For the March quarter of FY23, KPIT Technologies reported a great financial performance, with its revenue from operations jumping by 10.93% YoY to 1,107.4 crores and its profit after tax rising by 38.5% YoY to 111.58 crores. 

In addition, the firm has proposed a final dividend for FY23 of 2.65 per equity share of 10 each (26.5%), subject to the members’ approval at the subsequent AGM. With strong demand and rising visibility over the next three to four years, KPIT Technologies maintains its optimism about its performance in the future.