KPIT Brings a Guidance of $1 Billion in Revenue by FY27

KPIT is a global tech company offering software solutions and integration services, including prototype development, software creation, and testing. With development hubs in Europe, the USA, Japan, China, Thailand, and India, they cater to diverse client needs across industries, leveraging global talent and expertise to deliver comprehensive solutions tailored to specific requirements.

Financials 

In FY24, KPIT posted impressive financial results with a 40.4% increase in revenue and a 56% rise in profits after tax compared to the preceding fiscal year. This growth trend was possible because of consistent expansion in revenue and EBITDA for the 15th consecutive quarter. 

Total revenues reached $587 million, fueled by robust growth across multiple business segments. Notably, the constant currency revenue surged by 39.1%, exceeding the company’s heightened guidance for the year.

Quarterly Results 

In Q4FY24, KPIT posted revenues of Rs.1,321 Cr, marking a 28.5% y-o-y increase and a 6.6% q-o-q growth. Growth was driven by Middleware, Connected, and Autonomous sectors, particularly in Asia. Both passenger car and commercial vehicle verticals saw robust growth. EBITDA for the quarter stood at 20.7%, up 160 basis points(Bps) from the same period last year. PAT for the quarter was Rs.164.3 crores, showing a 5.8% Q-o-Q growth.

Future Prospects 

Looking forward to FY25, KPIT expects to sustain robust growth, projecting constant currency revenue to increase between 18-22%. They aim to uphold an EBITDA margin of 20.5% or higher, showcasing confidence in their operational efficiency and strategic direction. Additionally, KPIT revealed securing new engagements totalling $261 million in Q4FY24. 

Regarding talent acquisition and development, KPIT emphasized its dedication to cultivating expertise in automotive software. With nearly 13,000 global employees, the company prioritizes competency and development, with substantial investments dedicated to Artificial Intelligence. 

Moreover, according to Kishor Patil, CEO and MD of KPIT, the company anticipates achieving significant growth both organically and inorganically. They aim for an average annual growth rate of 20-25%, which would lead to nearly doubling their revenues to USD 1 billion (over Rs.5,400 crore) by FY27, within the next four years.

Conclusion: In conclusion, KPIT Technologies has demonstrated strong financial results, marked by substantial revenue and profit growth in FY24. With a strategic focus on sustaining growth and expanding its market presence, KPIT is poised for continued success as it strives towards doubling its revenues by FY27.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.