KPIT First Quarter Results FY 2017

KPIT Q1FY17 PAT grows 30% Y-o-Y
Q1FY17 Revenues grow 1.23% Y-o-Y in USD terms
Q1FY17 Revenues at USD 119.78 million

KPIT, a global technology company specializing in providing IT Consulting and Product Engineering solutions and services to Automotive, Manufacturing, Energy and Utilities companies, today reported its consolidated financial results for the first quarter ended June 30, 2016.

Highlights for the quarter ended March 31, 2016

§ In ₹ terms, revenue grew by 5.78% Y-o-Y to ₹8,032 million

§ $ revenue declined by 3.52% Q-o-Q

§ EBITDA margins for the quarter at 10.66%, wage hikes impact of ~ 250 bps during the quarter

§ PAT for the quarter stood at ₹550 million, a Q-o-Q decline of 41%

Management comments

Commenting on the performance of Q1 FY17, Ravi Pandit, Co-founder, Chairman & Group CEO, KPIT said, “The current quarter results are in line with our communication earlier. In the changing world of IT where investments are directed more towards new technologies and are based on critical customer needs, we are getting ready with our investments in Digital Technologies, IoT, Industry Specific Solutions and Account Management.”

Kishor Patil, Co-founder, CEO & MD, KPIT said, ”The revenue decline in the current quarter coupled with the wage hikes, has affected the profitability during the quarter. The revenue decline is a result of reduction in IT spend by some of our customers. Given this context, while we continue to maintain our wallet share, we are working on new technology and business domains to further our partnership with these customers. We remain committed to increasing the operating profitability as the year progresses and are working towards the same.”