KPIT Q2FY22 USD Revenue Grows 23.02 Percent Y-o-Y, Increases Revenue and Profit Outlook for the Year

Business Wire IndiaKPIT (NSE: KPITTECH BSE: 542651), a leading independent software development and integration partner to the automotive and mobility industry announced financial results for Q2 FY 2021-22 today.
 
Q2 FY22 performance overview
 

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 Rs 651 million as against Rs 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

 
Q2 FY22 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

 
Commenting on the performance of Q2 FY22 results
 
Kishor Patil, Co-founder, CEO and MD, KPIT said, “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”.
 
Sachin Tikekar, President and Whole-time Director, KPIT said, “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”.
 
Other highlights
 
KPIT wins a multi-million-dollar strategic engagement from a leading European Car Manufacturer in the Electric Powertrain domain.
 
KPIT and ZF form development cooperation for industry-leading middleware solution
 
KPIT and Future Mobility Solutions GmbH (FMS) – KPIT acquired initial 25% equity stake in Future Mobility Solutions GmbH (FMS) KPIT will acquire the balance 75% shareholding over a period of three years with majority shareholding expected to be acquired in the last quarter of Financial Year 2022-23.

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