Mumbai: Mobility-focused software player KPIT Technologies on Wednesday said its net income grew 41.5 per cent year-on-year to Rs 111.6 crore in the March 2023 quarter, buoyed by higher revenues and margins. The Pune-based IT company, which works with 25 large automakers and nets over 90 per cent of its revenue from them, guided for a slower top-line growth at 27-30 per cent this fiscal and a margin of 19-20 per cent.
For the full year, the company clocked USD 418 million in revenue, which was a growth of 36.7 per cent from which it earned a net income of Rs 381 crore, which was 39 per cent more than the 12 trailing months.
During an earnings call, Ravi Pandit, the cofounder and chairman of KPIT, expressed optimism amid the rising cloud of uncertainties in the global IT market due to the fears of a recession in the US, saying there was “no impact so far on orders, as the crisis so far is limited mostly to the financial services space, as over 90 per cent of our clients are automotiveOEMs“.
“Mobility and automotive sectors are not yet impacted and we have had no impact at all so far. We haven’t seen any slowdown from any of our existing overseas clients yet. Our programmes last for an average of five years and many of our top 25 clients have been with us for almost 10 years. For instance, we have been working with Cummins for the past two decades,” he said.
On the margin front, Kishor Patil, co-founder and chief executive and managing director, said the company has been consistently delivering healthy growth in revenues and operating profit. The current quarter is the 11th quarter on the trot.
“With the new orders from Honda and Renault, we start FY24 on a strong footing and expect to deliver constant currency revenue growth of 27-30 per cent and an operating margin of 19-20 per cent.”
Sachin Tikekar, president and joint managing director, said they expect Europe to lead the growth this fiscal as the region did in FY23, followed by Asia and the Americas.
He said the company had balanced growth from all these key markets. Since there is more momentum in Europe, which contributed USD 195 million in FY23, up from USD 131 million in FY22, we have every reason to believe that the region will continue to drive our revenue this fiscal as well.
“The next big growth market this year will be Asia, which chipped in with USD 73 million in FY23, up from USD 60 million, and the Americas, which fetched us USD 150 million in FY23, up from USD 127 million,” he added.
Pandit said the headcount crossed the 11,000 mark in FY23, up from 8,200 in FY22, with a net addition of almost 2,800 in the year.
Without offering an absolute number he said the attrition has come down to mid-teens from close to 20 per cent last year.
