KPIT TECH

Date 30.01.2025
KPIT TECH
Timeframe : Day Chart

FY25 MARGIN GUIDANCE INCREASED TO 21%

Key Consolidated Financial Metrics

🔹 Revenue from Operations: ₹1,478 crore
➤ (YoY: ₹1,257 crore, +17.6%)

🔹 Net Profit (PAT): ₹187 crore
➤ (YoY: ₹155.3 crore, +20.4%)

🔹 EBIT: ₹254 crore
➤ (YoY: ₹209 crore, +22%)

🔹 EBIT Margin: 17.2%
➤ (YoY: 16.6%, improvement of +60 bps)

Analysis Notes

🔹 Revenue Growth:
➤ Strong 17.6% YoY growth driven by demand in automotive software solutions, particularly in electric & autonomous mobility.

🔹 Profitability Expansion:
➤ PAT growth of 20.4% YoY highlights improved operational efficiencies and increasing order execution.

🔹 EBITDA & Margins:
➤ EBIT grew 22% YoY, with EBIT margin improving to 17.2% (+60 bps YoY), reflecting better cost control and higher-value projects.

🔹 Beats Estimates:
➤ The company outperformed market expectations, delivering higher-than-estimated revenue and profitability.

Operational Highlights
1.Growth in Automotive Engineering:
➤ Increasing engagements with OEMs & Tier-1 suppliers in EV, ADAS, and Software-Defined Vehicles (SDVs).
2.Strong Order Pipeline:
➤ Healthy deal wins in the mobility ecosystem and sustained growth momentum across geographies.
3.Efficiency Gains:
➤ Higher-margin projects and cost optimization led to improved EBIT margins.

Challenges
•Macroeconomic Uncertainty: Potential slowdowns in automotive spending could impact future growth.
•Talent & R&D Costs: Continued investments in talent and innovation may exert pressure on margins.

Investor Takeaways
•Solid Revenue & Profit Growth: KPIT is capitalizing on the rapid shift toward automotive digitalization.
•Margin Expansion: Cost efficiencies and premium projects contributed to EBIT margin growth.
•Outlook Positive: Strong pipeline of next-gen mobility solutions positions KPIT for continued growth.

KPIT Technologies delivered a stellar Q3 FY2025 performance, exceeding expectations with robust revenue growth, higher profitability, and margin expansion, reinforcing its leadership in automotive engineering solutions.

Regards,
Ankur