Following impressive Q3FY25 results that increased EBIT margin projection to above 21%, KPIT Technologies’ shares jumped 8%. Revenue increased 17.6% to ₹1,477.96 crore, while net profit increased 19.27% to ₹186.97 crore.
After KPIT Technologies reported impressive results for the quarter ending December 2024 (Q3FY25) and increased its EBIT margin guidance for the fiscal year 2025, its shares surged 8% in intraday trading on Thursday, January 30.
From its initial estimate of over 20.5 percent, KPIT Technologies has increased its EBITDA margin expectation to above 21 percent. Nonetheless, the business has stuck to its steady currency sales growth forecast of 18 to 22 percent.
Financial Performance:
KPIT Technologies’ net profit for the December 2024 quarter increased 19.27 percent year over year to ₹186.97 crore from ₹156.75 crore in the same quarter the previous year. Additionally, revenue from operations increased 17.6 percent, from ₹1,256.96 crore to ₹1,477.96 crore during the last fiscal year.
KPIT Technologies’ net profit decreased by more than 8% on a sequential basis from ₹203.75 crore in the previous quarter. Compared to the ₹1,523.31 crore recorded in the September 2024 quarter, revenue from operations decreased by 1.3% in the December 2024 quarter.
The company’s EBITDA margin increased from 20.8 percent in the prior quarter to 21.1 percent in Q3FY25. KPIT Technologies credited improved fixed-cost leverage, a favorable revenue mix, and productivity increases for this improvement.
Additionally, KPIT Technologies said that engagements totaling $236 million were closed during the reviewed quarter. Kishor Patil, co-founder, MD, and CEO, said that despite difficulties from currency changes, the company’s operational profit increased due to a positive change in the revenue mix and increased efficiency. As a result, KPIT Technologies has increased its margin projection for the fiscal year.
The business also branches into other sub-verticals, including trucks and off-highway vehicles, which Joint Managing Director Sachin Tikekar called “sizeable opportunities.” He stated that these areas are anticipated to contribute to growth beginning in the second part of the upcoming fiscal year. Tikekar said that in addition to its current position in Germany, KPIT Tech is aggressively looking into and forming new alliances with truck and passenger car manufacturers in China and Europe.
Stock Price Trend:
The stock reached a high of ₹1479.00 during the day, up as much as 8%. The stock has risen 21 percent from its 52-week low of ₹1,223.75, recorded on January 29 of last year, and is currently more than 23 percent off its top of ₹1,928.75, reached in July 2024. The stock closed yesterday’s trading session up 9%. The stock has lost 6% over the past year and dropped 1% in January.
