homeearnings NewsKPIT Tech sees growth in fixed price contracts; says offshoring, operational efficiency aided margin
KPIT Tech sees growth in fixed price contracts; says offshoring, operational efficiency aided margin
In an interview with CNBC-TV18, Kishor Patil, Co-Founder, Managing Director and CEO at KPIT, said, "Most of the growth has come into the fixed price projects, which has helped the company to use other parameters such as productivity improvement, more offshoring and better realization in terms of different business models." Patil believes with all these three parameters, KPIT has been in a position to increase growth.
KPIT Technologies reported its Q2FY22 earnings numbers. The company reported more than doubling of its September quarter net profit at Rs 65.1 crore, and also upped its performance guidance for the remainder of the fiscal as demand for services has revived fast. The Pune-headquartered company had posted a post-tax net profit of Rs 27.1 crore in the year-ago period. Its total income grew to Rs 600 crore from Rs 487 crore in the year-ago period and Rs 577 crore in the previous quarter.
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Kishor Patil, Co-Founder, Managing Director and CEO at KPIT, shared his views on the company's performance, in an interview to CNBC-TV18.
He said, “Margin has been improving for the company for the last five-six quarters. Every quarter we have been in a position to increase the margin.”
Year-on-year (YoY) the company has grown by 23 percent. Most of the growth has come into the fixed price projects, which has helped the company to use other parameters such as productivity improvement, more offshoring and better realization in terms of different business models.
“With all these three parameters, we have been in a position to increase growth. We see that this growth is more sustainable over the next four-five years due to different changes which are happening in the automotive market,” he explained.
Patil also mentioned that KPIT Technologies is looking at architectural changes, which are happening in the automotive industry.
“We are focusing on these long-term trends. That is why most of our engagements are becoming more long-term, more strategic,” he said.
(With inputs from PTI)
For the full interview, watch the accompanying video.
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(Edited by : Dipikka Ghosh)
First Published: Nov 2, 2021 10:21 AM IST
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