KPIT Reports Q1 FY23 Revenue Growth of 23 Percent Y-O-Y and Net Profit Growth of Over 41 Percent Y-O-Y

Business Wire IndiaKPIT (NSE: KPITTECH BSE: 542651), a leading partner for developing software defined vehicles to the automotive and mobility industry announced financial results for Q1 FY23 results today.

Performance overview

• Q1 FY23 Revenue
  • CC Revenue Growth of 23% Y-o-Y, 6.0% Q-o-Q
  • $ Revenue Growth of 16.4% Y-o-Y and 3.2% Q-o-Q
• Operating margins
  • Q1FY23 EBITDA at 19.4% against 18.6% last qtr.
  • Y-o-Y EBITDA growth of 35.7%, 9.7% Q-o-Q
• Q1 FY23 profit
  • Net Profit at Rs. 854 million
  • Net Profit growth of 41%+ Y-o-Y, 8.3% Q-o-Q
• New Engagements
  • New wins continue to be stronger
  • TCV of $ 155 million won during the quarter

 
Performance Highlights
 

• Sequential CC growth of 6% led by Electric Powertrain and architecture and middleware domains. Growth steered by passenger car vertical. Higher cross currency impact due to Euro, GBP and Yen depreciation against the INR.
• EBITDA expansion of 80 bps despite supply side constraints, fresher additions and cross-currency headwinds. Operating efficiency, net realization improvement and revenue growth leading to consistent improvement in margins
• Healthy growth in net profit aided by improvement in operating margins and higher other income. ETR for the quarter higher as compared to last quarter, as a result of one-time benefit last quarter.
• High cash conversion continued post acquisition payout, with DSO at 46 days. Net Cash at quarter end Rs. 10.6 billion. 14^th consecutive quarter of increase in net cash and healthy cash conversion

 
TCV of new engagements won during Q1 FY23: $ 155 million
 
Commenting on the performance of Q1 FY 23
 
Kishor Patil, Co-founder, CEO and MD, KPIT said,
“The vehicle manufacturers are aiming to earn revenues over the life of the vehicle for sustainable growth. This change will be enabled by CASE and centralized architecture programs, essentially Software Driven Vehicles. KPIT is uniquely positioned as a software integrator, helping global OEMs accelerate this journey. We have started the year on a positive note with an all-round performance, with growth in-line with our plan and healthy margin expansion, despite cross-currency headwinds. We remain optimistic on the overall growth environment.”
 
Sachin Tikekar, President and Joint MD, KPIT said,
"It has been our goal to uphold all our client commitments and help our clients become successful, by leveraging technology. This relentless focus on our strategic clients continues to yield great results, resulting in larger, strategic engagements. Supply side pressures continue to persist, albeit at an eased pace. We have nurtured the existing partnerships and formed new ones with global universities to help attract global talent and aid retention by enabling career growth opportunities to our employees, with focused educational programs.”
 
READ FULL INVESTOR UPDATE: https://www.kpit.com/news/kpit-q1-fy-23-results/