Business Wire IndiaKPIT, a leading independent software development and integration partner to the automotive and mobility industry announced financial results for Q3 FY 2021-22 today.
Q3 FY22 performance overview
Q3FY22 CC Revenue growth of 21.2% Y-o-Y, 5.6% Q-o-Q. Q3FY22 EBITDA at 18.5% as against 17.6% last quarter
Net Profit for the quarter at Rs. 700 million as against Rs. 651 million last quarter, Q-o-Q growth of 7.5%
Net Cash as at quarter end crosses the Rs. 10 billion mark. Interim Dividend of Rs. 1.25 per share
Annual EBITDA outlook raised, Yearly EBITDA to be around 18%
Q3 FY22 performance highlights
Sequential CC growth of 5.6% led by Electric Powertrain and Autosar. During the last 4 quarters, offshoring has increased and thus the volume growth is proportionately higher. Q3 was a good quarter in terms of deal closures.
EBITDA expansion of 86 bps post mid-term corrections, quarterly promotions and fresher addition. Improvement in revenue mix with increase in fixed price projects and offshoring.
Sequential net profit growth mainly aided by higher operating margins. Other income lower due to adverse currency movements.
High cash conversion continued post acquisition and variable incentive payouts, with DSO maintained at 48 days. Cash Balance at quarter end crosses Rs. 10 billion. 12th consecutive quarter of increase in net cash.
Commenting on the performance of Q3 FY22 results
Kishor Patil, Co-founder, CEO and MD, KPIT said, “The demand environment in the Mobility Industry continues to be robust, especially in the newer technology areas led by electrification, autonomous, connected, and architecture changes. Our strategic clients have a medium-term roadmap of sustained investments in these areas, giving us a healthy growth visibility for the next 4-5 years. We are forming the right partnerships within the ecosystem to accelerate our journey towards achieving our Vision. The growth during the quarter was in line with our expectations and we continue to deliver on margin improvement and cash conversion relentlessly. As we enter the last quarter of the financial year, we are confident of delivering on the higher end of our revised yearly outlook and begin the next year on a strong footing.”
Sachin Tikekar, President and Whole-time Director, KPIT said, “Guided by our Vision, we carry on to work ceaselessly on our Mission, leaning on the four pillars of Strategic Clients, Platforms and Practices, Zero Defect Delivery and Best Place to Grow. In line with the industry, employee turnover has been higher during the last 3-4 months. We expect the same to stabilize over the coming quarters. We are focusing on internal growth paths for our people and aggressively hiring talent, including freshers. Our engagements with strategic clients are increasingly becoming more relevant and value accretive towards our clients’ transformation journey. We continue to invest towards strengthening our solutions and client-facing organizations. With these, we are poised for sustainable growth in coming years.”
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