KPIT Tech says firm hasn't witnessed reduction in tech spending by clients
KPIT's clients continue to spend on technology and auto software spends are a priority for them. The company is accelerating its Honda engagement and seeing more opportunities. "We are a key partner to Honda".
KPIT Technologies is trading 1.6 percent higher in trade on July 26 after the company reported a strong set of financials for the first quarter of FY24. The stock closed the trading session on July 25 with nil gains.
The revenue rose to $133.9 million versus $123.8 million, while Rupee revenue rose to Rs 1,098 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew to Rs 214 crore versus Rs 182 crore in the same quarter of last year, while the margin improved to 19.5 percent versus 17.9 percent in the corresponding quarter of last year.
The profit after tax was 20 percent higher at Rs 134 crore as it included a one-time gain of Rs 13.4 crore.
Kishor Patil, Co-founder, MD and CEO at KPIT Tech, in an interaction with CNBC-TV18,, said the first half of FY24 would be stronger than the second half. The company has maintained its FY24 guidance at 27-30 percent constant currency growth and EBITDA margin at 19-20 percent. However, Kishor said the company shall revisit this guidance at the end of the third quarter.
Cautionary behaviour among IT services players' clients has lately led to the deferment of discretionary technology spending, hurting revenue growth. However, Kishor said KPIT's clients continue to spend on technology and auto software spending is a priority for them. The company is accelerating its Honda engagement and seeing more opportunities. "We are a key partner to Honda".
The company closed $190 million worth of engagements in this quarter with a healthy pipeline level across practices.
First Published: Jul 26, 2023 11:07 AM IST
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