KPIT Q2FY22 Performance Overview
KPIT Q2FY22 USD Revenue grows 23.02% Y-o-Y
Increases Revenue and Profit outlook for the year
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 ₹ 651 million as against ₹ 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
Q2FY22 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
Management Quotes
"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”
Kishor PatilCo founder, CEO and MD, KPIT
"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”
Sachin TikekarPresident and Whole time Director, KPIT
Significant Deal Win
KPIT wins a multi-million-dollar strategic engagement from a leading European Car Manufacturer in the Electric Powertrain domain.
The engagements pans over 5 years of software development and integration work. This will be followed by software maintenance. The total deal value is expected to be USD 52 million.
In the journey towards software-defined vehicles, the value KPIT will deliver in these programs become significant.
KPIT has been selected as a next gen software development and integration partner for the control unit of a new e-powertrain component, function development and software testing of all power electronics components of next gen Invertor, On-board Charger and Battery Management Systems (BMS).
Deal Wins
A leading European Car Manufacturer selected KPIT for multiple strategic engagements in the Electric Powertrain domain
A leading European Car Manufacturer selected KPIT for a strategic program in the Autonomous Driving domain
A leading American Car Manufacturer selected KPIT for multiple engagements in the electric and conventional powertrain areas
A leading Asian OEM selected KPIT for a key engagement in the Autonomous Driving domain
A leading Asian Cab Aggregator selected KPIT for a program in the Digital Connected Solutions domain
- Addresses major gap in availability of a mature, modular, integrated middleware solution that allows mobility OEMs to manage the continual increase in software complexity while retaining full control of architecture.
- The joint development will create an open and scalable platform which can be used across OEMs and mobility customers
- FMS is exclusively focused on the mobility industry. FMS is engaged in Software and Feature Development in Autonomous Driving, ADAS & Vehicle Safety and Integration & Validation. FMS will add certain unique proprietary offerings in the autonomous driving domain
- 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
- Revenues from FMS will not be consolidated into KPIT till the majority stake is acquired.
Financial and Operational Data
Profit & Loss Account Snapshot
INR MN
| DETAILS | Q2FY22 | Q1FY22 | Q2FY21 |
| Revenue from Operations | 5,908.73 | 5,673.81 | 4,854.59 |
| Other Income | 89.37 | 99.76 | 24.52 |
| Total Income | 5,998.10 | 5,773.57 | 4,879.11 |
| Operating Expenses | 4,868.14 | 4,692.65 | 4,158.04 |
| EBITDA | 1,040.59 | 981.16 | 696.55 |
| Depreciation | 290.93 | 286.46 | 354.90 |
| EBIT | 749.66 | 694.70 | 341.65 |
| Finance Costs | 38.56 | 40.10 | 43.70 |
| Change in FMV of Investments | 21.39 | 21.60 | 0.68 |
| Profit Before Exceptional Items | 821.86 | 775.96 | 323.15 |
| Exceptional items | – | – | 32.04 |
| PBT | 821.86 | 775.96 | 355.19 |
| Tax | 170.86 | 173.50 | 83.66 |
| PAT | 651.00 | 602.46 | 271.53 |
| Profit Attributable to owners of company | 651.00 | 602.46 | 278.88 |
| Profit Attributable to non-controlling interest | – | – | (7.35) |
Balance Sheet Snapshot
INR MN
| ASSETS | Q2FY22 | Q1FY22 |
| NON-CURRENT ASSETS | ||
| Property, Plant & Equipment | 1,868.99 | 1,909.14 |
| Right-of-use Assets | 2,304.49 | 2,438.75 |
| Other Tangible Assets | 136.70 | 158.80 |
| Goodwill & Other Intangibles | 1,397.59 | 1,370.56 |
| Other Non-Current Assets | 1,137.22 | 869.47 |
| TOTAL NON-CURRENT | 6,844.99 | 6,746.72 |
| CURRENT ASSETS | ||
| Inventories | NIL | NIL |
| Cash and Cash Equivalents | 9,333.79 | 8,786.36 |
| Trade Receivables | 3,604.79 | 3,186.99 |
| Other Current Assets | 1,407.87 | 1,805.02 |
| TOTAL CURRENT | 14,346.45 | 13,778.37 |
| TOTAL ASSETS | 21,191.44 | 20,525.09 |
| EQUITY & LIABILITIES | Q2FY22 | Q1FY22 |
| Equity Share Capital | 2,696.18 | 2,691.54 |
| Other Equity | 10,042.32 | 9,857.96 |
| Equity attributable to owners | 12,738.50 | 12,549.50 |
| Non-controlling interests | – | – |
| TOTAL EQUITY | 12,738.50 | 12,549.50 |
| NON-CURRENT LIABILITIES | ||
| Borrowings | NIL | NIL |
| Lease Liabilities | 1,748.95 | 1,857.09 |
| Other Non-Current Liabilities | 772.38 | 480.64 |
| TOTAL NON-CURRENT | 2,521.33 | 2,337.73 |
| CURRENT LIABILITIES | ||
| Borrowings | NIL | NIL |
| Trade Payables | 1,508.18 | 1,802.46 |
| Lease Liabilities | 329.07 | 351.51 |
| Others | 4,094.36 | 3,483.89 |
| TOTAL CURRENT | 5,931.61 | 5,637.86 |
| TOTAL EQUITY AND LIABILITIES | 21,191.44 | 20,525.09 |
Revenue Break-up
USD MN
| Geography | Q2FY22 | Q1FY22 | Q2FY21 | Q-o-Q | Y-o-Y |
| US | 32.53 | 31.76 | 27.30 | 2.4% | 19.2% |
| Europe | 32.13 | 30.37 | 26.67 | 5.8% | 20.5% |
| Asia | 15.69 | 15.07 | 11.34 | 4.1% | 38.4% |
| TOTAL | 80.36 | 77.21 | 65.32 | 4.1% | 23.0% |
| Verticals | Q2FY22 | Q1FY22 | Q2FY21 | Q-o-Q | Y-o-Y |
| Passenger Cars | 59.70 | 58.40 | 50.63 | 2.2% | 17.9% |
| Commercial Vehicles | 19.66 | 17.95 | 14.05 | 9.5% | 39.9% |
| Others | 0.99 | 0.85 | 0.64 | 16.5% | 54.7% |
| TOTAL | 80.36 | 77.21 | 65.32 | 4.1% | 23.0% |
| Practices | Q2FY22 | Q1FY22 | Q2FY21 | Q-o-Q | Y-o-Y |
| Powertrain | 31.58 | 28.05 | 24.18 | 12.6% | 30.6% |
| AD ADAS | 14.45 | 15.77 | 16.38 | (8.4)% | (11.8)% |
| Connected Vehicle | 8.41 | 9.07 | 7.32 | (7.3)% | 14.9% |
| Others | 25.92 | 24.31 | 17.44 | 6.6% | 48.6% |
P&L Metrics (Quarterly)
| Q2FY22 | Q1FY22 | Q2FY21 | Q-o-Q | Y-o-Y | |
| Revenue by Contract Type | |||||
| Time & Material Basis | 43.7% | 43.6% | 52.0% | 4.5% | 3.5% |
| Fixed Price Basis | 56.3% | 56.4% | 48.0% | 3.8% | 44.2% |
| Clients | |||||
| Strategic T21 Client Revenue | 83.82% | 84.62% | 86.1% | 3.1% | 19.8% |
| Active Clients | 55 | 55 | 55 | ||
| Revenue per Devp. Employee USD | 51,910 | 51,257 | 42,602 | ||
| EBITDA Margin | 17.6% | 17.3% | 14.3% | ||
| EBIT Margin | 12.7% | 12.2% | 7.0% | ||
| PAT Margin | 11.0% | 10.6% | 5.7% | ||
| Effective TaxRat | 20.8% | 22.4% | 23.6% | ||
| EPS(Basic) | 2.42 | 2.24 | 1.04 | ||
| EPS(Diluted) | 2.39 | 2.21 | 1.03 |
*Out of the target 25, strategic relationships with 21 accounts established and hence revenue for those accounts considered
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Details of Nodal Officer
Name: Sneha Padve
E-mail: Sneha.padve@kpit.com
Investor Contacts
For any investor related queries, you may contact
Sunil Phansalkar Sunil.Phansalkar@kpit.com
Investor Relations
SEZ Unit, Plot-17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Hinjawadi, Pune – 411057
For speedy redressal, the shareholders may send their grievances to
Priya Hardikar Priya.Hardikar@kpit.com
Head of Finance, Legal & Secretarial
SEZ Unit, Plot-17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Hinjawadi, Pune – 411057
For any investor related queries, you may contact
Nida Deshpande nida.deshpande@kpit.com
Assistant Company Secretary & Compliance Officer
SEZ Unit, Plot-17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Hinjawadi, Pune – 411057
Registrar & Share Transfer Agent
Karvy Fintech Private Limited (Formerly known as KCPL Advisory Services P Ltd)
Mr. S V Raju einward.ris@karvy.com
Karvy Selenium Tower B, Plot no.31 & 32,
Financial District Nanakramguda, Serilingampally Mandal, Hyderabad – 500032,
www.karvyfintech.com,
Tel No. +91 40 6716 2222
Karvy Fintech Private Limited (Formerly known as KCPL Advisory Services P Ltd)
Mr. Mohan Kumar mohan.a@karvy.com
Karvy Selenium Tower B, Plot no.31 & 32,
Financial District Nanakramguda, Serilingampally Mandal, Hyderabad – 500032,
www.karvyfintech.com,
Tel No. +91 40 67161572
Since last 25 years, KPIT Technologies has been working with mobility and automotive companies, providing technology solutions for making mobility cleaner, smarter and safer. In Jan-2018, KPIT announced a restructure to merge with Birlasoft and then demerge to focus only the Mobility and the Automotive sector. This entity was hence incorporated as a public limited company on 8th January, 2018 under the Companies Act, 2013.
On March 13, 2019, name of the company changed from “KPIT Engineering Limited” to “KPIT Technologies Limited”.
The registered office of the company is located at:
Plot No. 17, Rajiv Gandhi Infotech Park
Phase III, MIDC – SEZ, Hinjawadi
Pune – 411 057, India
Tel: +91 20 6770 6000
The founder members of KPIT are Mr. Ravi Pandit and Mr. Kishor Patil
Reimagining mobility with you for creation of a cleaner, smarter & safer world
KPIT specializes in embedded software, AI & digital solutions for the automotive and mobility industry enabling its customers accelerate implementation of next generation mobility technologies.
KPIT has software development centers located in Pune, Bangalore, Mumbai, Noida, Chennai (India), Munich (Germany), Raleigh (US), Folsom (US) and Sao Paolo (Brazil). We have 31 global offices across 16 countries.
The Company is in the process of filing the listing application with stock exchanges. This section will be available for investors once the Company is listed with the stock exchanges.
Ms. Nida Deshpande is the Compliance Officer/Company Secretary of KPIT.
Please contact the Company Secretary on the above-mentioned address
You can get in touch with Mr. Sunil Phansalkar from the investor relations team at sunil.phansalkar@kpit.com