KPIT net profit up 54.6% at INR 155.3 cr in Q3 FY24; bets on CV segment for growth, ET Auto

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<p>Talking about the company's plans for FY25 Tikekar mentioned adding 2-3 clients in its portfolio.</p>
Talking about the company’s plans for FY25 Tikekar mentioned adding 2-3 clients in its portfolio.

New Delhi: KPIT Technologies recorded net profit growth of 54.6% Y-o-Y at INR 155.3 crore and EBITDA growth at 52.2% Y-o-Y for Q3 FY24. The revenue from operations for Q3 FY24 stood at INR 1256.9 crore against INR 1199.1 crore in Q2 FY24, the company said.

The management of KPIT Technologies have disclosed that at present 20% of the company’s revenue is coming from the commercial vehicle segment. KPIT also revealed their intention to further boost their relationship with their three existing commercial vehicle (CV) clients for more revenue generation.

The company’s EBITDA margin expanded to 20.6% for Q3 FY24 against 20% in Q2 FY24. Its global clients are in Europe, Japan, and the US where four clients are in the passenger vehicles segment and one in the commercial vehicle segment. KPIT Technologies has seen positive growth globally from its existing clients in diamond and platinum accounts.

“Next couple of years, the percentage growth in commercial vehicles has to be higher,” said Sachin Tikekar, President and Joint MD, KPIT Technologies. The company is looking to focus on Europe, America, and Asia for expansion of its global business in the coming year.

Talking about the company’s plans for FY25 Tikekar mentioned adding 2-3 clients in its portfolio. “We expect to have continuous growth from our existing clients, and more than 85% of the growth will come from our existing clients in the new year and we will add 2-3 OEM clients by FY25” he said.

In-car gaming technology: KPIT’s management has revealed about the progress of their investment in N-dream owned Air Console which is stated to become the world’s first in-car gaming experience. Moreover, the management has assured that safety would be a priority while designing this in-car gaming technology. “Safety is a very important part, this is done (gaming) when the vehicles are not moving, or when you are at rear seat entertainment,” said Kishor Patil, Co-Founder, CEO & MD of KPIT Technologies. Talking about the company’s plans for FY25 Tikekar mentioned adding 2-3 clients in the company’s portfolio. “We expect to have continuous growth from our existing clients, and more than 85% of the growth will come from our existing clients in the new year and we will add 2-3 OEM clients by FY25” he said.

Regarding the availability of this technology, KPIT said that BMW would be one of the first OEMs to incorporate this technology in their car starting with the i7 model on European roads. Moreover, the CEO and MD of KPIT showed his interest in bringing this technology in India also.

Future plans: Investment in new and emerging technological areas is what KPIT is always looking for and at present it has almost 20 autonomous production programs. Talking about this, Patil mentioned that KPIT and ZF’s joint venture ‘Qorix’ aims to build a middleware operating system for the car. He further added, “Apart from electrification, we already have hydrogen fuel cell technology”.

Some of the company’s technology portfolio includes charging, vehicle operating system, middleware operating system, and in-car gaming. Patil also revealed that some of the emerging technologies are going to be showcased in the Bharat Mobility Global Expo 2024.

The company is working in the area of client experience and aims to create ‘a cabin experience’ for the clients along with in-car gaming programs. On the OEM side, they plan to create data, create analytics, and provide the ability to the OEMs to offer services.

  • Published On Jan 31, 2024 at 12:18 PM IST

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