KPIT Technologies, a software-providing service to the automotive and mobility ecosystem for making software-defined vehicles, recorded a 68.7% year-on-year net profit during Q2 FY24 to Rs 1409 million over a similar period last year. The company’s revenues, on the other hand, jumped to Rs 11991.57 million during Q2 FY24, translating to 54.2% year-on-year over a similar period last year.
KPIT’s top leadership attributed the spike to broad-based growth across practices and verticals, including strategic accounts, passenger car verticals, electric powertrains, autonomous driving, and digitally connected solutions practices.
The company’s total contract value (TCV) of new engagements during the reported quarter stood at Rs 156 crore.
Kishor Patil, Co-founder, CEO, and MD of KPIT, said,” Our medium-term business fundamentals and growth drivers remain unchanged. While the geopolitical situation and economic uncertainty across geographies are leading to a softer macro environment, we keep a watchful eye on the impact on our clients and their business priorities.”
“Our clients remain committed to making investments in newer, relevant technologies. Basis our performance so far and near-term visibility, we raise our constant currency revenue growth outlook for FY24 to more than 37% growth and increase our EBITDA margin outlook to over 20%”.
In industry parlance, constant currency growth in a profit and loss account refers to the growth in revenue or earnings when adjusted for currency fluctuations. CC stands for “constant currency,” and it is used to measure the underlying growth of a company’s financial performance without the impact of exchange rate changes. This is particularly relevant for multinational companies that operate in different countries and report their financial results in different currencies.
Sachin Tikekar, President and Joint Managing Director, KPIT, said,” We will sharpen our focus further on commercial vehicles in the near term”.