KPIT Q3FY2024 Performance Overview

Q3FY24 Net Profit grows 55% Y-o-Y

Q3FY24 CC Revenue grows 31.5% Y-o-Y

Revenue

Reported $ Revenue growth of 35.0% Y-o-Y.
4.3% CC growth, 2.7% Reported $ growth, Q-o-Q

EBITDA

Q3FY24 EBITDA at 20.6%. Up 200 bps YoY.
Y-o-Y EBITDA growth of 52.2%, Q-o-Q 7.7%

Profit

Q3FY24 Net Profit at ₹ 1,553M.
Y-o-Y PAT growth of 54.6%, Q-o-Q 10.3%

Wins and Pipeline

$ 189M worth engagements closed in the quarter.
Healthy Pipeline across practices

Q3FY2024 Performance Highlights

Sequential CC Growth of 4.3% led by Powertrain, Autonomous and Connected domains. Growth was led by Passenger Vehicles in Europe & Asia. Cross currency impact due to higher mix of EURO, JPY and GBP revenues (~63% of total revenue) impacted Reported $ Revenue

EBITDA margin expanded to 20.6% (20% last qtr.) up ~200 bps Y-o-Y, post addition of ~600 freshers and quarterly promotions. Margin expansion led by improved productivity and operating leverage coupled with a better realized rate.

Q3FY24 PAT grew 54.6% Y-o-Y. Other income was higher as compared to last quarter due to gains on hedging contracts. ETR was slightly higher as compared to last quarter, in-line with our annual outlook on ETR.

Net Cash Balance at the end of the quarter stood at ₹ 8.29 billion, depicting a net cash addition of ₹ 3.1 billion. DSO at the end of the quarter stood at 46 Days.

Management Quotes

Kishor Patil

We continue to focus on execution relentlessly and have been consistently reaping the benefits of our focus on the mobility industry, key technologies, key clients and key talent. The Q3FY24 revenues have been in line with our expectations, while we have delivered slightly ahead of expectations on the profitability front. Basis our performance so far, robust pipeline and the consistency of demand driven by new technology investments by our strategic clients, we are confident of meeting our upward revised outlook for the year.

Kishor Patil

Co founder, CEO and MD, KPIT

Sachin Tikekar

We are witnessing broad based traction across technologies, clients, sub-verticals and geographies. We are increasing our strategic engagements in the quest to move towards being Trusted Partners for our strategic clients. As we have seen over the last 4 quarters, the attrition continues to fall and is now at historically low levels. We have significantly moved the needle in our quest for inclusive sustainability across KPIT. We have increased our investments in new technologies and competency development to enable us deliver complex engagements, successfully

Sachin Tikekar

President and Joint MD, KPIT

Deal Wins

TCV of new engagements won during the Quarter : $ 189 million

1

A Leading Asian Car Manufacturer selected KPIT for multiple engagements in the Autonomous Driving and Vehicle Engineering domains.

2

Strategic engagements in the System Engineering for Body electronics domains for a leading European Car Manufacturer.

3

Several strategic engagements in the E-Powertrain domain for leading European OEMs in partnership with a leading Tier-1.

4

Strategic engagement in the Autonomous Driving domain for a leading European Car Manufacturer.

5

Several engagements in Vehicle Engineering domain for a leading American Commercial Vehicle Manufacturer.

Financial and operational Data