Pune-based KPIT Technologies is confident of winning a few more mega engagements over the next 3-4 months, MD & CEO Kishor Patil told CNBC-TV18 in an interview.
The total contract value for the quarter stood at $142 million. Patil also said that the company is looking to sign more multi-year deals with OEMs as the quality of their conversations with clients is improving.
The company expects to achieve 20 percent EBITDA margin over the next two years. EBITDA margin declined 90 basis points in the September quarter to 18.5 percent after eight quarters of expansion.
"In the next couple of years, we will get there for sure," Patil said without specifying a timeline. The company raised its full-year EBITDA margin guidance to 18.5-19.5 percent from 18-19 percent earlier.
Elaborating on the rationale, Patil said that the company invested a lot in its workforce this year, providing double-digit increments. "20 percent is not out-of-bounds, but we will give the outlook at the beginning of every year," he said.
For the September quarter, KPIT Tech reported 5 percent growth in its US Dollar revenue while net profit declined by a similar quantum. Revenue in rupee terms grew in high single-digits. In Constant Currency terms, revenue increased 8.3 percent. The company has also raised its organic growth outlook for the year to 23 percent from 18-21 percent earlier.
Patil spoke of differentiated offerings and positioning within the technology space, which allowed the company to raise its guidance.
Last month, the company announced the acquisition of four companies of Germany's Technica Group valued at over $80 million, which will be paid over the next six months. Part of the full-year organic revenue guidance of 31-32 percent will also include contributions from Technica for the next five months. Technica has an annual revenue run-rate of 42-43 million euros with an EBITDA margin of 20 percent.
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First Published: Oct 21, 2022 8:13 AM IST
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