KPIT Technologies, an auto industry-focused firm, reported a substantial 52% increase in its net profit for the March 2024 quarter, reaching INR 204.2 crore. This growth was driven by higher revenue and improved profit margins. In comparison, the company had recorded a net profit of INR 134 crore in the same period last year.
The company’s revenue from operations surged by 24% to INR 1,364.6 crore, up from INR 1,097.6 crore a year ago. Kishor Patil, co-founder, chief executive, and managing director, expressed increased confidence in their fiscal guidance. “We are now aiming for a 19-22% growth in the top line against the earlier expectation of 18-22% announced earlier,” he said.
Despite the company achieving an operating profit margin of 21.1% during the reported quarter, up from 20.7% in the previous March quarter and 20% in the same period last year, Patil maintained the operating profit margin guidance at 20.5%.
He noted that KPIT hasn’t observed any business impact despite a slowdown in the growth rate of EV sales. “As the pressures on managing costs go up due to aggressive play by Chinese companies, our solutions can be of help,” he added.
A senior official highlighted that the highest growth for KPIT will come from Asia. China is the third largest geographical market for KPIT in Asia, following Japan and India.
The official also mentioned that KPIT serves not only the electric vehicle market but also those with internal combustion engines and hybrid vehicles. Patil stated, “Business on the commercial vehicles front is growing and the company expects the segment to contribute significantly higher in the future.”
On Wednesday, KPIT’s scrip closed at INR 1,851.75 apiece on the BSE, marking a 3.12% increase, while the benchmark saw a 0.35% correction.
