This IT stock which is in the business of specializing in embedded software, AI, and Digital solutions focused on automobile and mobility hit a 10 percent upper circuit after announcing Q3FY25 results with an EBITDA guidance of 21%+ for FY25.
Price Movement
In Wednesday’s trading session, KPIT Technologies Ltd‘s share price touched a day’s high of Rs. 1,386.77, which was up by 10 percent. The share price reiterated from the day’s high and was trading at Rs. 1,379.26, which is 9.4 percent higher than the previous closing price of Rs. 1,260.70. In the past year, the stock has delivered a negative return of around 2.27 percent and has underperformed the Nifty Index.
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.
Management Commentary
Kishor Patil, the Co-founder, CEO, and MD of KPIT Technologies said,” The third quarter revenues are in line with our annual revenue outlook while the operating profit has improved due to revenue mix change and productivity improvement, despite currency headwinds. Thus, we increase our annual EBITDA Margin outlook to 21%+ from 20.5%+ earlier. We are investing in AI technologies fined tuned with automotive-specific data.”
Sachin Tikekar, the Co-founder and Joint MD of KPIT Technologies said,” We have been developing new sub-verticals viz Trucks and Off-highway. There are sizable opportunities through these investments, and they are now contributing to building our pipeline across the geographies. These will contribute to our growth from the second half of the next financial year.”
Dividend Announcement
The company has announced an interim dividend for FY25 of Rs. 2.5 per share which is 25 percent of the face value of Rs. 10 per share. The record date for the interim dividend is Tuesday, February 4, 2025.
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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