KPIT Q2FY22 Performance Overview

KPIT Q2FY22 USD Revenue grows 23.02% Y-o-Y Increases Revenue and Profit outlook for the year

FY2022 Revenue growth outlook increased to 18% - 20% FY2022 EBITDA margin outlook raised to 17.5+%

Q2FY22 EBITDA at 17.6% as compared to 17.3% last quarter post full quarter impact of wage hikes

Net Profit for the quarter at ₹ 651 million as against ₹ 602 million last quarter, Y-o-Y growth of 134%, Q-o-Q, 8.1%

Q2FY22 reported revenue at USD 80.36 million, a CC growth of 4.8% Q-o-Q

Q2FY22 Performance Highlights

Sequential CC growth of 4.8% across commercial vehicles and passenger cars verticals, broad based within geographies. Electric Powertrain and Diagnostics practices led the growth during the quarter

EBITDA expansion despite full quarter impact of wage hikes and fresher addition. Improvement in per person productivity, reduction in sub-contractor costs, pyramid improvement & revenue growth helped expand margins

Sequential net profit growth aided by higher operating margins, in-line depreciation and higher yield on cash though the other income was lower due to unfavorable currency movements

High cash conversion continued post dividend payout, with DSO further reduced by 2 days to 48 days. 11th consecutive quarter of increase in net cash

Management Quotes

We are witnessing a robust demand environment resulting in strong order inflow and pipeline. With improved business visibility, we have increased our revenue and profit outlook for the year. Our strategic partnership with ZF will improve our positioning and further cater to the upcoming high spend areas of mobility companies. Q2FY22 was the fifth sequential quarter of margin expansion, despite higher-than-average increments during the quarter. We will continue to focus on productivity improvement, people retention and development and strengthening of front-end to enable us improve our overall performance on an ongoing basis

Kishor Patil

Co founder, CEO and MD, KPIT

While we are improving our operating performance every quarter, we continue to build upon our strategic initiatives of Platforms & Practices, Zero Defect Deliveries, Best Place to Grow and T25 Strategic Relationships. Through the CTO organization, we are continually strengthening our Practices with the right Platforms, Tools and Accelerators. We have increased coverage of Culture of Excellence Trainings and Individual Development Plans, building on the Best Place to Grow. We have made client facing investments and have deployed afresh, a Client Engagement Framework to further strengthen our strategic client relationships. We are excited about helping our clients accelerate their journey towards a cleaner, safer and smarter world

Sachin Tikekar

President and Whole time Director, KPIT

Significant Deal Win

KPIT wins a multi-million-dollar strategic engagement from a leading European Car Manufacturer in the Electric Powertrain domain.

The engagements pans over 5 years of software development and integration work. This will be followed by software maintenance. The total deal value is expected to be USD 52 million.

In the journey towards software-defined vehicles, the value KPIT will deliver in these programs become significant.

KPIT has been selected as a next gen software development and integration partner for the control unit of a new e-powertrain component, function development and software testing of all power electronics components of next gen Invertor, On-board Charger and Battery Management Systems (BMS).

Deal Wins

1

A leading European Car Manufacturer selected KPIT for multiple strategic engagements in the Electric Powertrain domain

2

A leading European Car Manufacturer selected KPIT for a strategic program in the Autonomous Driving domain

3

A leading American Car Manufacturer selected KPIT for multiple engagements in the electric and conventional powertrain areas

4

A leading Asian OEM selected KPIT for a key engagement in the Autonomous Driving domain

5

A leading Asian Cab Aggregator selected KPIT for a program in the Digital Connected Solutions domain

Financial and operational Data