More Stories

Informist, Wednesday, Jan. 29, 2025

 

Please click here to read all liners published on this story

--KPIT Tech: Saw significant cash generation during Oct-Dec 
--CONTEXT: Comments by KPIT Tech's management at post-earnings analyst call 
--KPIT Tech: Have INR 14.2 bln in cash now vs INR 9.68 bln earlier 
--KPIT Tech: Don't see visa challenges in US for short-term project visits 
--KPIT Tech: Demand recovery led by Europe, followed by Americas, Asia 
--KPIT Tech: Demand recovery led by passenger cars, trucks, highway OEMs 
--KPIT Tech: Would be selective in hiring people going forward 
--KPIT Tech: Will continue to hire more in low-cost countries 
--KPIT Tech: In good position to hire, attrition at lowest 
--KPIT Tech: Deal pipelines rose 20% QoQ Oct-Dec led by Europe 
--KPIT Tech: 98% revenue from top 25 clients Oct-Dec, 2% from remaining 35 

 

By Akshita Kumar

 

MUMBAI – KPIT Technologies' deal pipeline for the December quarter grew 20% sequentially, led by business in Europe and having won multiple large deals from broad-based clients, the company's management said in a post-earnings conference call Wednesday.
 

The company is also in discussions with eight new clients and expects possible deal conversions over the coming quarters. What gives hope to the company is that there has been a significant improvement in closures of the deals that they reported, the company management said.

 

Other than the deal pipeline, the company added sizeable cash to its coffers, taking the total to INR 14.2 billion, up from INR 9.68 billion in the previous quarter, the management said. The information technology company reported its earnings for Oct-Dec during market hours Wednesday. It reported a consolidated net profit of INR 1.87 billion on revenues of INR 14.78 billion for Oct-Dec.

 

The company said its demand recovery for the December quarter was led by Europe, followed closely by America and Asia. When looking at the break-up of the sub-verticals, it was led by passenger cars, followed by trucks, and highway original equipment manufacturers, the management said.

 

On the issue of impact of the Trump government taking over the reigns of the US, KPIT Tech management said that it did not see any significant challenges as expressed with regards to working of non-American IT companies. They said that they do not believe that the change in government would have any impact on issuance of visas to non-Americans for work, especially short-term project visas. The management believes the focus should be on talent and not about immigration. The management said it is also prepared to continue to increase its local presence (in the US) as well.

The company's headcount increased by only 50 people as compared to the December quarter last year. The managment said it will be selective in hiring going forward and will continue to hire more in lower-cost countries. The company said its attrition rate was the lowest in the industry and was about half of the average industry attrition. 

 

When asked about the revenue contribution from its 60-63 client roster, the company said that over 98% of revenue came from top 25 clients in the December quarter. While the remaining 2% came from the rest of the 35 clients, the management said. 

 

The company is also trying to engage with semiconductor companies to create solutions which will be significant for OEMs. Wednesday, shares of the company closed at INR 1,370.05 on the National Stock Exchange, up 8.8%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.