KPIT Tech Q2 Results: Company raises FY24 revenue, EBITDA growth guidance; stock gains over 7%

For the September quarter, KPIT Tech reported revenue growth of 9.2% sequentially to ₹1,199.1 crore from ₹1,097.6 crore in June. Net profit increased by 5.1% to ₹140.8 crore. The base quarter also had a one-time gain of ₹13.4 crore, excluding which, the net profit growth would be 16.8%, according to the company.

Operating profit or EBITDA grew 12.1% to ₹239.8 crore, while EBITDA margin grew by 50 basis points to 20% from 19.5% in June. The company managed to grow margin by 50 basis points after the full-quarter impact of wage hikes, which had a gross impact of 250 basis points. This was offset by revenue growth and improvement in net realisations.

"While the geopolitical situation and economic uncertainty across geographies is leading to a softer macro environment, we keep a watchful eye on the impact on our clients and their business priorities," KPIT Tech's co-founder, CEO and Managing Director Kishor Patil said. "Our clients remain committed to making investments in newer, relevant technologies," he added.

KPIT Tech won new engagements worth $156 million during the quarter. This includes a strategic multi-year engagement in the autonomous driving domain for a leading European Car manufacturer, a strategic program in the powertrain domain for a leading American car manufacturer among other deals.

Shares of KPIT Tech have gained as much as 7.5% post the announcement to an intraday high of Rs 1,213.45.