KPIT Q2FY22 USD Revenue grows 23.02% Y-o-Y. Increases Revenue and Profit outlook for the year

Pune, India | 1st Nov 2021 | NSE: KPITTECH BSE: 542651: KPIT, a leading independent software development and integration partner to the automotive and mobility industry announced financial results for Q2 FY 2021-22 today.

KPIT Q2FY22 USD Revenue grows 23.02% Y-o-Y. Increases Revenue and Profit outlook for the year

Q2 FY22 performance overview

  • FY2022 Revenue growth outlook increased to 18% – 20%.FY2022 EBITDA margin outlook raised to 17.5+%
  • Q2FY22 EBITDA at 17.6% as compared to 17.3% last quarter post full quarter impact of wage hikes
  • Net Profit for the quarter at ₹ 651 million as against ₹ 602 million last quarter, Y-o-Y growth of 134%, Q-o-Q, 8.1%
  • Q2FY22 reported revenue at USD 80.36 million, a CC growth of 4.8% Q-o-Q

Q2 FY22 performance highlights

  • Sequential CC growth of 4.8% across commercial vehicles and passenger cars verticals, broad based within geographies. Electric Powertrain and Diagnostics practices led the growth during the quarter
  • EBITDA expansion despite full quarter impact of wage hikes and fresher addition. Improvement in per person productivity, reduction in sub-contractor costs, pyramid improvement & revenue growth helped expand margins
  • Sequential net profit growth aided by higher operating margins, in-line depreciation and higher yield on cash though the other income was lower due to unfavorable currency movements
  • High cash conversion continued post dividend payout, with DSO further reduced by 2 days to 48 days. 11th consecutive quarter of increase in net cash

Commenting on the performance of Q2 FY22 results

Kishor Patil, Co-founder, CEO and MD, KPIT said, ”We are witnessing a robust demand environment resulting in strong order inflow and pipeline. With improved business visibility, we have increased our revenue and profit outlook for the year. Our strategic partnership with ZF will improve our positioning and further cater to the upcoming high spend areas of mobility companies.  Q2FY22 was the fifth sequential quarter of margin expansion, despite higher-than-average increments during the quarter. We will continue to focus on productivity improvement, people retention and development and strengthening of front-end to enable us improve our overall performance on an ongoing basis”.

Sachin Tikekar, President and Whole-time Director, KPIT said,” While we are improving our operating performance every quarter, we continue to build upon our strategic initiatives of Platforms & Practices, Zero Defect Deliveries, Best Place to Grow and T25 Strategic Relationships. Through the CTO organization, we are continually strengthening our Practices with the right Platforms, Tools and Accelerators. We have increased coverage of Culture of Excellence Trainings and Individual Development Plans, building on the Best Place to Grow. We have made client facing investments and have deployed afresh, a Client Engagement Framework to further strengthen our strategic client relationships. We are excited about helping our clients accelerate their journey towards a cleaner, safer and smarter world”.

Other highlights

  • KPIT wins a multi-million-dollar strategic engagement from a leading European Car Manufacturer in the Electric Powertrain domain.
  • KPIT and ZF form development cooperation for industry-leading middleware solution
  • KPIT and Future Mobility Solutions GmbH (FMS) – KPIT acquired initial 25% equity stake in Future Mobility Solutions GmbH (FMS) KPIT will acquire the balance 75% shareholding over a period of three years with majority shareholding expected to be acquired in the last quarter of Financial Year 2022-23

About KPIT:

KPIT is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 7000 automobelievers across the globe specializing in embedded software, AI, and digital solutions, KPIT accelerates clients’ implementation of next-generation technologies for the future mobility roadmap. With engineering centers in Europe, the USA, Japan, China, Thailand, and India, KPIT works with leaders in automotive and mobility and is present where the ecosystem is transforming.

For more details visit www.kpit.com

Media Contacts:

Mohit Kochar
Global Head, Marketing | mohit.kochar@www.kpit.com

Sunil Ravish
Director – Marketing | Media Relations  | sunil.r@www.kpit.com

Investor Relations:

Sunil Phansalkar

Head, Investor Relations | Sunil.Phansalkar@www.kpit.com

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