KPIT Increases FY23 Outlook for CC Revenue Growth to 31-32 Percent
Business Wire India
Reports CC Revenue Growth of 27% Y-o-Y, 8.3% Q-o-Q
EBITDA margin outlook increased to 18.5%-19.0%
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% Y-o-Y, 8.3% Q-o-Q
$ Revenue Growth of 17.2% Y-o-Y and 4.8% Q-o-Q
Q2 FY23 profit
EBITDA growth of 33% Y-o-Y
Net Profit growth of 28% Y-o-Y
FY23 outlook
FY23 CC Revenue growth outlook increased to 31% - 32%
EBITDA margin outlook increased to 18.5%-19.0%
Deals & Pipeline
Revenue Pipeline at all time high
TCV of $ 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% 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 ₹ 58 million (₹ 94.9 in Q2FY23 vs ₹ 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: $ 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%-32%. The organic growth outlook is 200+ bps higher than the higher end of the 18%-21% 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.”