Software firm KPIT Technologies, which works primarily with the automobile industry said it expected a strong demand environment in the auto industry to continue and revised its organic growth guidance to 23% from 18-21% guided earlier. The company said that it was seeing broad based organic growth across practices, let by strategic clients.
“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,” said Kishor Patil, Co-founder, CEO and MD, KPIT. He added that the performance for the September quarter had been better than expected and that the company had a healthy pipeline with a few mega engagements expected to close in the next three-four months.
The Pune-headquartered company reported a net profit of Rs 83.48 crore for Q2FY23, up 28.23% over the corresponding quarter last year. Revenues for the period were up 26% at Rs 744.83 crore.
During the quarter, KPIT announced the acquisition of Technica, which specialises in production-ready system prototyping, automotive ethernet products, & tools for validation. The company said that this creates excellent synergies with KPITs’ software competence and across-the-stack expertise.
“Vehicle makers are investing heavily to develop Software Defined Vehicles (SDVs) of tomorrow…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,” said Sachin Tikekar, President and Joint MD, KPIT.
He said that the supply side pressures, while easing out, would still continue to some extend in FY23. The company would continue to focus on talent development and retention, rolling out slightly higher than average increments and promotions. He total headcount at the end of the quarter stood at 9,916, as against 9,183 in the earlier quarter.
Read More:
The industry-leading initiative, presented during the Group’s ‘Unlock the Software Age’ global online forum, will deliver an era of mobility, giving customers the freedom to remotely upgrade the performance and functionality of their vehicles anywhere at any time. The Group will also introduce vehicles in 2025 based on its two new EV platforms, eM, and eS. The new EV platforms will be created under the Group’s Integrated Modular Architecture (IMA) system.
‘Vandy,’ the electric car designed by Pravega, a team of 19 students from the mechanical stream of the college, with the mentorship of Acsia Technologies emerged as the best from multiple entries across the world, a statement said.