The shares of the multinational software company gained up to 5 percent after the company’s board approved a joint venture investment agreement to invest up to 13.65 million euros in Qorix GmbH.
The shares of KPIT Technologies Ltd were trading at Rs 1,688.70 per share, increasing around 3.28 percent as compared to the previous closing price of Rs 1,635.05 apiece. The market capitalization of the company is Rs 46,195.97 crore.
The company shares have seen positive movement after KPIT Technologies Ltd’s board of directors approved a joint venture investment agreement between KPIT Technologies Limited (“KPIT”) and ZF Friedrichshafen AG to invest up to 13.65 million euros.
Moreover, in this JV agreement, ZF Friedrichshafen AG (“ZF”) has infused Euro 1.35 million towards capital contribution. Post infusion, Qorix GmbH is a Joint Venture Company of KPIT & ZF having 50:50 ownership. ZF will further contribute Euro 13.65 million towards the share premium & assign its relevant IP in due course of time.
However, this investment was made by JV to promote, develop, and distribute open and scalable middleware products/platforms for the mobility ecosystem. Furthermore, Qorix GmbH is an independent company focused on the creation of a world-class automotive middleware stack.
Looking forward to the company’s financial performance, revenue magnified by 29 percent from Rs 1,017 crore in Q4FY23 and Rs 1,318 crore in Q4FY24 but, during the same period of time, net profit magnified drastically by 48 percent from Rs 112 core to Rs 166 crore.
The company has 68 patents in its portfolio. KPIT software is installed in over 10 million vehicles, and 25+ OEMs serve as key partners. The total contract value in Q4 FY24 was about $261 million.
In FY25, KPIT anticipates sales growth of 18-22% in constant currency terms and an EBITDA margin of 20.5% or higher. Revenue increase will be broad-based across disciplines and regions.
KPIT intends to increase technology investments in cross-practice products, AI adoption, a stronger Asia emphasis, strategic alliances, and collaborations in FY25.
KPIT Technologies Ltd is an India-based firm that develops embedded software for the automotive and transportation industries. The company’s solutions include autonomous driving and advanced driver assistance systems (ADAS), electric and conventional powertrains, connected vehicles, and many others.
Written by:- Abhishek Singh
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