KPIT Reports FY22 Net Profit Growth of 88* Percent over FY21 and Revenue Growth of 19.7 Percent in CC Terms

Business Wire India

Performance overview

• FY22 Revenue
  • Reported $ Revenue Growth of 19.5%.
  • Volume growth of ~28% driven by higher offshore
• FY22 Net Profit
  • Growth of 88* percent over FY21

• Q4 FY 22 Revenue
  • CC Revenue Growth of 21% Y-o-Y, 5.2% Q-o-Q
  • $ Revenue Growth of 17% Y-o-Y and 4.1% Q-o-Q
• Q4 FY22 Profit
  • Net Profit at ₹ 789 million
  • Net Profit growth of 50%^# Y-o-Y, 12.7% Q-o-Q

• Large Deal
  • A leading European OEM selects KPIT as its key partner for next generation ECU Platforms Software with a TCV of Euro 70+ million
• FY23 Outlook
  • CC Revenue growth in the range of 18% to 21%
  • EBITDA margin to be in the range of 18% to 19%
  • Volume Growth in the range of 25%

 
Performance Highlights
 

• Sequential CC growth of 5.2% led by Autonomous and Connected domains. Broad based growth across commercial vehicles and passenger car verticals. Q4 was another good quarter in terms of deal closures.
• EBITDA expansion of 10 bps despite supply side constraints and fresher additions. Offshore has consistently increased in FY22; ~ 10% over FY21, resulting in higher volume growth and improved margins
• Sequential double digit net profit growth aided by improvement in operating margins and higher other income. ETR for the quarter lower as a one-time impact. FY22 EPS at 10.05.
• High cash conversion continued post dividend payout, with DSO at 53 days. Net Cash at quarter end ₹ 10.3 billion. 13^th consecutive quarter of increase in net cash. Final Dividend of ₹ 1.85/share. Total FY22 Dividend ₹ 3.10/share

TCV of Total Deals won during the Quarter: $ 125* million
(* Excluding The Strategic Large Engagement of Euro 70+ M. Includes renewals plus new deals.)
 
Commenting on the performance of FY22
 
Ravi Pandit, Co-founder and Chairman, KPIT said,
“FY22 was a year of resurgence in many ways, and I am happy with the way we have emerged stronger. The transformation in the Mobility Industry is pointing towards Software Defined Vehicles, aiming for a larger goal of sustainability for all. We have been working in these areas for over 2 decades and will be a major contributor towards this transformation with our expertise and dependability. We are committed towards achieving our Vision of creating a Cleaner, Safer and Smarter World.”
 
Kishor Patil, Co-founder, CEO and MD, KPIT said,  
“We have delivered seven sequential quarters of healthy growth and steady margin expansion. The Mobility Industry is investing heavily in CASE and architectural changes to make Software Defined Vehicle a reality. We are witnessing elevated interests from clients to engage in these areas. This gives us great visibility of robust demand for the next 4-5 years. On the back of this, we expect to deliver CC growth of 18%-21% in FY23 with EBITDA margins between 18%-19%. FY23 Volume growth is expected to be ~25%.”
 
Sachin Tikekar, Co-founder and Joint MD, KPIT said,
“The Mobility Industry transformation is seen in both passenger car and commercial vehicle verticals. This is creating demand much higher than supply. We thus, will have a sharper focus on talent attraction, development, and retention. We will continue to invest in the right technologies and partnerships to help us deliver value to our clients, making them successful in their transformation. We start FY23 on the back of closure of key strategic, long-term engagements with our T25 clients, giving us clear visibility for another year of profitable growth.”
 
READ FULL INVESTOR UPDATE: https://www.kpit.com/news/kpit-q4-fy-22-results/

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