KPIT increases FY23 Outlook for CC Revenue Growth to 31-32 per cent

Pune (Maharashtra) [India], October 19 (ANI/BusinessWire India): KPIT (NSE: KPITTECH; BSE: 542651), a leading partner for accelerating the transformation towards Software-Defined Vehicle to the automotive and mobility industry announced financial results for Q2 FY23 results today.
Performance overview
– Q2 FY23 Revenue
– CC Revenue Growth of 27 per cent Y-o-Y, 8.3 per cent Q-o-Q
– USD Revenue Growth of 17.2 per cent Y-o-Y and 4.8 per cent Q-o-Q
– Q2 FY23 profit
– EBITDA growth of 33 per cent Y-o-Y
– Net Profit growth of 28 per cent Y-o-Y
– FY23 outlook
– FY23 CC Revenue growth outlook increased to 31 per cent – 32 per cent
– EBITDA margin outlook increased to 18.5 per cent -19.0 per cent
– Deals & Pipeline
– Revenue Pipeline at all-time high
– TCV of USD 142 million won during the quarter
– Talent
– Global employee count nearing 10000
– Attrition easing out and expected to even become better by end of FY23
– Focus on talent development and retention; Increments and promotions higher than industry
Performance Highlights
– Sequential CC growth of 8.3 per cent led by Digital Connected Solutions and Electric Powertrain domains. Growth led by Commercial Vehicles vertical. Higher cross currency impact. Pipeline continues to grow stronger, at all-time high
– EBITDA impact of 90 bps post wage hikes in the quarter (gross impact of wage hikes ~ 300bps). Fresher additions and cross-currency headwinds impact continues. Operating efficiency, net realization improvement and revenue growth helped reduce impact on reported margins
– Lower other income to the tune of Rs 58 million (Rs 94.9 in Q2FY23 vs Rs 152.9 in Q1FY23) on account of translation-related foreign exchange losses resulting mainly from rupee depreciation/appreciation against the USD/Euro
TCV of new engagements won during Q2 FY23: USD 142 million
Commenting on the performance of Q2 FY 23

Kishor Patil, Co-founder, CEO and MD, KPIT said, “Software is at the heart of the transformation that the mobility industry is witnessing. KPIT’s position as a leader in this transformation is leading to consistency in performance and long-term visibility of growth. Q2FY23 performance has been better than expectations. We have a healthy pipeline with a couple of mega engagements expected to get closed in the coming 3-4 months. We have thus raised our FY23 growth outlook to 31 per cent-32 per cent. The organic growth outlook is 200+ bps higher than the higher end of the 18 per cent -21 per cent outlook at the beginning of the year.”

Sachin Tikekar, President and Joint MD, KPIT said, “Vehicle makers are investing heavily to develop Software Defined Vehicles (SDVs) of tomorrow. This calls for deep domain expertise and software competence, which KPIT brings to the table. We are seeing the result of this and thus witnessing increased traction with our Strategic Clients. The supply side constraints are gradually moving in the right direction with attrition numbers consistently on the decline. We are very excited with the addition of Technica to the KPIT family with the closing effected in October 2022.”

READ FULL INVESTOR UPDATE: https://www.kpit.com/kpit-investor-update-q2fy23-2/
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