Shares of a leading IT company rallied nearly 5 percent after it reported strong quarterly results, driven by robust revenue growth and healthy margins. The company also announced a dividend payout, boosting investor sentiment.
Price Action
During Monday’s trading session, KPIT Technologies Ltd shares hit an intra-day high of Rs.1,277.00 per share, marking a 4.5 percent increase from the previous close of Rs.1,221.00 each. The share has since retreated and is currently trading at Rs.1,231.50 per share. Over the past five years, the shares have delivered over 2,100 percent returns.
What Happened
KPIT Technologies Ltd experienced a significant rise, fueled by strong growth in both revenue and net profit, as reflected in its latest financial results.
In Q4 FY25, the company reported revenue of Rs.1,497.4 crore, marking a growth of approximately 17.4 percent from Rs.1,275.7 crore recorded in Q4 FY24. On a sequential basis, revenue declined by around 1.7 percent compared to Rs.1,523.3 crore in Q3 FY25, although overall business momentum remained steady.
The net profit for the quarter stood at Rs.186.97 crore, registering an increase of about 19.3 percent year-on-year compared to Rs.156.7 crore in the same period last year. However, on a quarter-on-quarter basis, net profit fell by nearly 8.2 percent from Rs.203.7 crore in Q3 FY25, indicating some moderation in earnings performance.
At present, KPIT Technologies Ltd is trading at a Price-to-Earnings ratio of 44.1, below the industry average of 51.1, indicating a relatively lower valuation with EPS of Rs.27.68. In terms of liquidity, the company maintains a current ratio of 1.39, a debt-to-equity ratio of 0.14, and EV to Sales of 5.84.
Dividend Announcement
The Board of Directors of KPIT Technologies has approved an interim dividend of Rs.6 per share, representing a 60 percent payout on the face value of Rs.10. The dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM) and will be disbursed within the prescribed statutory timelines.
Recent Developments
Additionally, the Board of KPIT Technologies approved the merger of its wholly-owned subsidiary, PathPartner Technology Pvt. Ltd., with itself. The merger is intended to streamline operations, strengthen financial flexibility, enable direct access to capital, and combine technical expertise across the organization.
Separately, during the quarter, KPIT Technologies successfully closed engagements worth USD 280 million, highlighting strong business momentum and continued client confidence.
Mercedes-Benz Collaboration
KPIT Technologies also announced a collaboration with Mercedes-Benz Research and Development India to advance the development of software-defined vehicles. This partnership is expected to accelerate innovation and strengthen KPIT Tech’s position in the evolving automotive software space.
Written by – Siddesh S Raskar
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