The shares of this global technology company that specializes in providing product engineering solutions jumped 3.1% on Wednesday’s trade after it acquired an additional 13% stake in N-Dream AG, a Switzerland-based gaming firm.
Stock Action:
Shares of KPIT Technologies Ltd, with a market capitalization of Rs. 48,002.58 Crores, rose to Rs. 1,767.70 per share, from its previous close of Rs. 1,714.40 apiece.
Reason behind the action:
KPIT Technologies Limited has strategically acquired an additional 13% stake in N-Dream AG, a Swiss company specializing in cloud-based in-car gaming solutions, for approximately €3 million. This acquisition aligns with KPIT’s vision to enhance passenger experiences in vehicles, referred to as the “Cockpit of the Future.”
N-Dream’s platform, AirConsole, allows users to play a variety of casual games in cars, tapping into a growing market for in-car entertainment; it has already been fitted in new BMW vehicles since early 2023.
KPIT will offer complementary software integration and validation services to N-Dream’s automotive clients, aiming to expand in-car gaming offerings as the automotive industry moves towards more autonomous driving solutions, allowing passengers to enjoy entertainment during their journeys. This partnership is expected to facilitate the wider rollout of AirConsole to other car models and manufacturers.
KPIT has a total shareholding of 26% in N-Dream AG, and they continue to hold minority and non-controlling equity stake.
Financials:
The company reported revenues of Rs. 4,871.54 Crores in FY 2024, up from Rs. 3,365.04 Crores in FY 2023, resulting in 44.7% year-on-year growth, and net income for the same period increased from Rs. 386.86 Crores to Rs. 598.51 Crores, resulting in 54.7% growth in net income.
Shareholding Pattern:
As of the June quarter, shareholding pattern the company promoters own 39.47% stake, while Foreign institutional investors own 22.33% of the company, Domestic institutional investors own 16.65% of the company, and the retail investors hold 21.65% stake in the company.
About the Company:
KPIT Technologies is a leader in software development and integration for the automotive and mobility sector, focused on enabling the shift to software-defined vehicles. KPIT specializes in embedded software, AI, and digital solutions that help its clients innovate and achieve their future mobility goals.
The company operates engineering centers in key markets across Europe, the USA, Japan, China, Thailand, and India, collaborating with industry leaders to create cleaner, smarter, and safer transportation solutions.
Written By: Arvind jv
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