Q4FY23 CC Revenue grows 50% Y-o-Y FY23 Revenue grows 36.7% in CC terms

KPIT Q4FY2023 and FY23 Performance Overview

Q4FY23 CC Revenue grows 50% Y-o-Y
FY23 Revenue grows 36.7% in CC terms

Q4FY23 Revenue

Reported $ Revenue growth of 42.1%
Y-o-Y 8.5% CC growth, 12.1% Reported $ growth, Q-o-Q

Q4FY23 Profit

EBITDA at 19.1%, 60% Y-o-Y growth
Net Profit at ₹ 1,116 million, 41.5% Y-o-Y growth

FY23 Revenue

Reported $ Revenue Growth of 27.4%
FY23 Reported Revenue $ 418 Million

FY23 Profit

EBITDA at 18.9%, growth of 45% over FY22
Net Profit at ₹ 3,810 Million, 39% growth over FY22

FY24 Outlook
CC Revenue growth in the range of 27% to 30% EBITDA margin to be in the range of 19% to 20%

Q4FY2023 Performance Highlights

Growth led by Strategic Accounts, Middleware and Architecture, Autonomous and Diagnostics. Technica revenues marginally up as compared to last quarter. Q4FY23 also witnessed strategic new engagement closures.

EBITDA margin expansion of 60 bps for the quarter led by revenue growth and operational efficiencies. Impact of Purchase Price Allocation relating to Technica Acquisition reflected in Depreciation. Deemed Interest on payments related to deferred payouts is reflected in Finance Costs.

Other income for the quarter depicted a loss of ₹ 56 million as compared to a profit of ₹ 210 million in Q3FY23. Q3FY23 income was higher on account of rupee depreciation against the Euro and GBP

Net Cash at quarter end stood at ₹ 5.8 billion post Acquisition payouts of ₹ 682 million (PathPartner and Somit) and Interim Dividend of ₹ 400 million. DSO stood at 54 days. Final Dividend of ₹ 2.65 per share. Total FY23 Dividend of ₹ 4.10 per share

Management Quotes

The Mobility Industry is one of the larger contributors to global carbon footprint. Huge investments are being made and planned towards a sustainable future. We are proud to be intensely involved in this over the years and we will be a major technology led contributor towards this transformation. We are committed to achieve our vision of creating a Cleaner, Safer and Smarter world. FY23 was another satisfying year of sustainable growth and margin expansion, and we are excited and confident about our performance going forward.

Ravi Pandit

Co-founder, Chairman

We have consistently delivered eleven sequential quarters of healthy growth in revenues and operating profits. On the back of a solid quarter and year performance and basis recent mega engagements and committed spend on software by our Strategic Clients, we are witnessing robust demand and increased visibility for the next 3-4 years. We are focused on helping our clients create new business models to transform their business. We start FY24 on a strong footing and expect to deliver CC revenue growth of 27%-30% with EBITDA margins between 19%-20%.”.

Kishor Patil

Co founder, CEO and MD, KPIT

We start FY24 on the back of closure of key strategic, long-term engagements with Q4 wins TCV of $ 423 Million. We will focus on alignment and collaboration of practices to address larger problems of our clients through broader technology solutions. We are committed to building scale through robust competency framework, flawless execution and on-boarding the right talent with higher competency. We will channelize our investments towards creating trusted partnerships with our clients to effect greater value creation, in the coming years”.

Sachin Tikekar

President and Joint MD, KPIT

Deal Wins

TCV of new engagements won during the Quarter : $ 423* million


Honda selected KPIT as a strategic technology partner to realize the journey of Honda’s Software-Defined Mobility (SDM) (already announced mid-quarter)


1

A strategic engagement in middleware development and integration domain for a leading American Car Manufacturer

2

A strategic engagement in the electric powertrain domain for a leading European Car Manufacturer

3

Multiple engagements in the vehicle engineering design and connected domains for a leading American Commercial Vehicle Manufacturer

4

Multiple strategic programs in the connected vehicle domains for a leading Asian Car Manufacturer.

5

A strategic engagement in the electric powertrain domain for a leading European Car Manufacturer

* Includes TCV of ~ $ 250 Million for strategic engagement with Honda

Financial and operational Data

Profit & Loss Account Snapshot

INR MN

DETAILS Q4FY23 Q3FY23 Q4FY22 FY23 FY22
Revenue from Operations 10,173.67 9,171.15 6,517.65 33,650.38 24,323.86
Other Income 62.60 210.59 127.54 401.92 397.42
Total Income 10,236.27 9,381.74 6,645.19 34,052.30 24,721.28
Operating Expenses 8,350.16(This includes forex loss of INR 119.06 Million which is excluded in EBITDA computation) 7,472.50 5,303.69 27,295.80 19,938.40
EBITDA 1,942.57 1,698.65 1,213.96 6,354.58 4,385.46
Depreciation 422.10 404.05 307.18 1,463.79 1,196.14
EBIT 1,520.47 1,294.60 906.78 4,890.79 3,189.32
Finance Costs 106.57 82.82 70.46 323.13 193.95
Change in FMV of Investments (0.51) (29.37) 2.93 (25.68) 50.67
Profit Before Exceptional Items 1,356.93 1,393.0 966.79 4,943.90 3,443.46
Exceptional items – – – – –
Profit/(loss) of equity accounted investee 5.10 0.74 5.37 23.97 1.98
PBT 1,362.03 1,393.74 972.16 4,967.87 3,445.44
Tax 246.21 353.17 166.28 1,099.24 683.01
PAT 1,115.82 1,040.57 805.88 3,868.63 2,762.43
Profit Attributable to owners of company 1,116.00 1,004.90 788.77 3,809.98 2,742.33
Profit Attributable to non-controlling interest (0.18) 35.67 17.11 58.65 20.10

Balance Sheet Snapshot

INR MN

ASSETS Q4FY23 Q3FY23
NON-CURRENT ASSETS
Property, Plant & Equipment 2,143.89 2,104.68
Right-of-use Assets 2,594.34 2,491.56
Other Tangible Assets 56.43 40.88
Goodwill & Other Intangibles 10,102.57 8,828.77
Other Non-Current Assets 1,392.58 1,500.08
TOTAL NON-CURRENT 18,562.20 14,965.97
CURRENT ASSETS
Inventories 587.50 667.51
Cash and Cash Equivalents 6,287.97 7,235.42
Trade Receivables 5,924.40 6,262.91
Other Current Assets 2,643.68 2,091.19
TOTAL CURRENT 15,443.55 16,257.03
TOTAL ASSETS 34,005.75 31,223.00
EQUITY & LIABILITIES Q4FY23 Q3FY23
Equity Share Capital 2,703.46 2,701.55
Other Equity 13,811.92 12,775.53
Equity attributable to owners 16,515.38 15,477.08
Non-controlling interests 117.56 232.13
TOTAL EQUITY 16,632.94 15,709.21
NON-CURRENT LIABILITIES
Borrowings NIL NIL
Lease Liabilities 1,864.28 1,800.74
Other Non-Current Liabilities 3,827.99 1,233.02
TOTAL NON-CURRENT 5,692.27 3,033.76
CURRENT LIABILITIES
Borrowings 486.03 493.43
Trade Payables 1,643.35 1,865.32
Lease Liabilities 508.88 467.14
Others 9,042.28 9,654.14
TOTAL CURRENT 11,680.54 12,480.03
TOTAL EQUITY AND LIABILITIES 34,005.75 31,223.00

Revenue Break-up (Quarterly)

USD MN

Verticals* Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y
Passenger Cars 92.14 86.00 62.88 7.1% 46.5%
Commercial Vehicles 30.75 23.49 22.04 30.9% 39.5%
Business Units** Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y
Feature Development & Integration 76.21 71.53 60.80 6.5% 25.3%
Architecture & Middleware Consulting 23.83 18.07 9.79 31.9% 143.4%
Cloud Based Connected Services 23.75 20.85 16.52 13.9% 43.8%
Geography Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y
US 44.66 35.39 33.10 26.2% 34.9%
Europe 61.40 56.96 34.27 7.8% 79.2%
Asia 17.74 18.10 19.73 (2.0)% (10.1)%

*The balance revenues come from others, which is not a big area as of now

**Feature Development & Integration – Electrification, AD-ADAS, Body Electronics and VED Architecture & Middleware Consulting – Middleware, AUTOSAR
Cloud Based Connected Services – Intelligent Cockpit, Digital Connected Solutions and Diagnostics

Revenue Break-up (Annual)

USD MN

Verticals FY23 FY22 Y-o-Y
Passenger Cars 314.39 242.40 29.7%
Commercial Vehicles 100.37 80.05 25.4%
Business Units** FY23 FY22 Y-o-Y
Feature Development & Integration 274.24 231.15 18.6%
Architecture & Middleware Consulting 66.77 38.35 74.1%
Cloud Based Connected Services 77.27 58.86 31.3%
Geography FY23 FY22 Y-o-Y
US 149.81 127.82 17.2%
Europe 195.36 131.89 48.1%
Asia 73.12 68.63 6.2%

**Feature Development & Integration – Electrification, AD-ADAS, Body Electronics and VED Architecture & Middleware Consulting – Middleware, AUTOSAR
Cloud Based Connected Services – Intelligent Cockpit, Digital Connected Solutions and Diagnostics

P&L Metrics (Quarterly)

Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y
Revenue by Contract Type
Time & Material Basis 54.6% 51.0% 48.1% 20.0% 61.3%
Fixed Price Basis 45.4% 49.0% 51.9% 3.9% 24.3%
Clients
Strategic Client Revenue 79.5% 81.4% 83.9% 9.5% 34.8%
Active Clients (Period End) 60 60
Revenue per Devp. Employee USD 48,092 45,105 45,679
R&D Expenditure (USD MN) 2.74 2.50 2.09
EBITDA Margin 19.1% 18.5% 18.6%
EBIT Margin 14.9% 14.1% 13.9%
PAT Margin 11.0% 11.0% 12.1%
Effective Tax Rate 18.1% 25.3% 17.1%
EPS (Basic) 4.13 3.72 2.92
EPS (Diluted) 4.09 3.68 2.89

P&L Metrics (Annual)

FY23 FY22 Y-o-Y
Revenue by Contract Type
Time & Material Basis 52.6% 44.8% 49.6%
Fixed Price Basis 47.4% 55.2% 9.3%
Clients
Strategic T21 Client Revenue 82.5% 83.8% 25.4%
Active Clients (Period End) 60 60
Avg Revenue per Devp. Employee USD 43,929 48,804
R&D Expenditure (USD MN) 9.6 9.0
EBITDA Margin 18.9% 18.0%
EBIT Margin 14.5% 13.1%
PAT Margin 11.3% 11.3%
Effective Tax Rate 22.1% 19.8%
EPS (Basic) 14.10 10.17
EPS (Diluted) 13.96 10.05

Connect with us

KPIT Technologies is a global partner to the automotive and mobility ecosystem for making software-defined vehicles a reality. It is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future. With 9000+ automobelievers across the globe specializing in embedded software, AI, and digital solutions, KPIT accelerates its clients’ implementation of next-generation technologies for the future mobility roadmap. With engineering centers in Europe, the USA, Japan, China, Thailand, and India, KPIT works with leaders in automotive and mobility and is present where the ecosystem is transforming.

Solutions

Careers

Newsroom

Insights

contact Us

KPIT Technologies Ltd

Plot Number-17,
Rajiv Gandhi Infotech Park,
MIDC-SEZ, Phase-III,
Hinjawadi, Pune – 411057
Phone: +91 20 6770 6000

KPIT Technologies GmbH

Frankfurter Ring 105b,80807
Munich, GERMANY
Phone: +49 89 3229 9660
Fax: +49 89 3229 9669 99

KPIT and KPIT logo are registered trademarks | © Copyright KPIT for 2018-2021

CIN: 67354536738904