KPIT Q1FY2023 Performance Overview

Q1FY23 CC Revenue grows 23% YoY
Q1FY23 reports YoY Net Profit growth of 41%+

Q1FY23 Revenue

CC Revenue Growth of 23% Y-o-Y, 6.0% Q-o-Q, $ Revenue Growth of 16.4% Y-o-Y and 3.2% Q-o-Q

Operating Margins

Q1FY23 EBITDA at 19.4% against 18.6% last qtr. Y-o-Y EBITDA growth of 35.7%, 9.7% Q-o-Q

Q1FY23 Profit

Net Profit at ₹ 854 million. Net Profit growth of 41%+ Y-o-Y, 8.3% Q-o-Q

New Engagements

New wins continue to be stronger, TCV of $ 155 million won during the quarter

Q1FY2023 Performance Highlights

Sequential CC growth of 6% led by Electric Powertrain and architecture and middleware domains. Growth steered by passenger car vertical. Higher cross currency impact due to Euro, GBP and Yen depreciation against the INR.

EBITDA expansion of 80 bps despite supply side constraints, fresher additions and cross-currency headwinds. Operating efficiency, net realization improvement and revenue growth leading to consistent improvement in margins

Healthy growth in net profit aided by improvement in operating margins and higher other income. ETR for the quarter higher as compared to last quarter, as a result of one-time benefit last quarter.

High cash conversion continued post acquisition payout, with DSO at 46 days. Net Cash at quarter end ₹ 10.6 billion. 14th consecutive quarter of increase in net cash and healthy cash conversion

Management Quotes

The vehicle manufacturers are aiming to earn revenues over the life of the vehicle for sustainable growth. This change will be enabled by CASE and centralized architecture programs, essentially Software Driven Vehicles. KPIT is uniquely positioned as a software integrator, helping global OEMs accelerate this journey. We have started the year on a positive note with an all-round performance, with growth in-line with our plan and healthy margin expansion, despite cross-currency headwinds. We remain optimistic on the overall growth environment

Kishor Patil

Co founder, CEO and MD, KPIT

It has been our goal to uphold all our client commitments and help our clients become successful, by leveraging technology. This relentless focus on our strategic clients continues to yield great results, resulting in larger, strategic engagements. Supply side pressures continue to persist, albeit at an eased pace. We have nurtured the existing partnerships and formed new ones with global universities to help attract global talent and aid retention by enabling career growth opportunities to our employees, with focused educational programs

Sachin Tikekar

President and Joint MD, KPIT

Deal Wins

TCV of new engagements won during the Quarter $ 155 million

1

A leading European Car Manufacturer selected KPIT for a multiyear engagement in the electric powertrain domain

2

A leading Asian Car Manufacturer awarded KPIT multiple programs in the connected and middleware domains

3

A leading American Commercial Vehicle Manufacturer selected KPIT for a multiyear engagement in the Vehicle Engineering and Design domain

4

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

5

A leading American Tier I awarded KPIT multiple programs in the powertrain domain

Financial and operational Data