This IT stock which is in the business of specializing in embedded software, AI, and Digital solutions focused on automobile and mobility up 8 percent after the company announced revenue guidance and future plans.
Price Movement
In Thursday’s trading session, KPIT Technologies Ltd‘s share price touched a day’s high of Rs. 1,479, which was up by 7.95 percent. The share price reiterated from the day’s high and was trading at Rs. 1,440.50, which is 5.14 percent higher than the previous closing price of Rs. 1,370.05. In the past year, the stock has delivered a negative return of around 1.42 percent and has underperformed the Nifty Index.
What Happened
The company’s stock surged after they announced their Q3FY25 results and announced guidance and future plans. The Management said that the growth of Electric Vehicles is not the only growth driver of the company but Digital Cockpit and Autonomous Driving are expected to be the largest growth drivers in the next few years. Further, The company said it aspires to double its overall revenues to USD 200 crore with more than 25 percent margins by FY30.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 1,477.95 crore which increased by 17.58 percent year on year, from Rs. 1,256.96 crore in Q3FY24 and a 0.44 percent increase from Rs. 1,471.41 crore in Q2FY25. Their net profit increased by 19.27 percent year on year, from Rs. 156.75 crores in Q3FY24 to Rs. 186.97 crores in Q3FY25. Quarterly, the profits were down by 8.23 percent from Rs. 203.74 crore.
Geographical Revenue Segments
The company has earned its revenue from the Americas which contributed around 20.58 percent, the UK & Europe contributed around 38.64 percent and the remaining 40.77 percent from the Rest of the World as of the December 2024 quarter.
Guidance & TCV deal wins
KPIT Technologies has provided CC (constant currency) revenue growth guidance of 18 percent to 22 percent range and FY25 EBITDA Guidance of more than 21 percent increase from 20.5 percent earlier. The company has won a total contract value of around $236 million in Q3FY25.
About the company
KPIT Technologies is an Indian multinational specializing in engineering research and development for the automotive sector. They are headquartered in Pune and offer embedded software and AI solutions, with a global presence.
Written by Santhosh S
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