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Informist, Monday, Apr. 28, 2025

By Arya S. Biju

MUMBAI – KPIT Technologies Ltd. see oppurtunity for growth in China, despite the current geopolitical and macroeconomic conditions, said Ravi Pandit, co-founder and chairman of the company, in a post-earnings analyst call. The company is currently working with its existing original equipment manufacturing clients to remain relevant in the Chinese market. "...we are finding that especially in the area of architecture, the work that we do globally with our global clients could be inducted in the China market and that is something that can give them some edge in that market," the company management said. 

Further, the company also aims to take the offerings of the Chinese original equipment manufacturers and make them global. On its growth in Asia region, the company said it expects board-based growth in the region going forward, with fluctuations on a sequential basis but a steady growth on a year-on-year basis. 

The company expects growth in the Asia region to be primarily driven by the passenger car segment and supported by trucks vertical. In the Asia region, the company expects to see reasonable growth in its India business, positive growth in Japan and China, and flat growth in its Korea business in 2025-26 (Apr-Mar). For the quarter ended March, the company reported a revenue of $51.17 million from its operations in Asia, up 10% on quarter and over 73% on a year-on-year basis. 

Regarding its operations in Europe, the company said the outlook for Europe for FY26 remains encouraging, with a solid deal pipeline. Similar to that of Asia, growth in Europe is expected to be led by the passenger car and trucks segments, the company's management said. In the March quarter, the company reported a 7.4% sequential fall in its revenue from Europe to $77 million. In the US region, the company expects more growth coming from the off-highway segment. KPIT Tech has already started an engagement with a large off-highway player in the US this year, the management said. Revenue from the company's operations in the US rose 5.9% sequentially to $49.13 million.

Of the large deals won in the March quarter, many are already in the transition phase, the company's management said. Many of these deals have also started scaling up, though in a slower phase. KPIT Tech hopes to close at least one of these deals during Apr-Jun. The company also expects the trade agreements disrupted by the US tariffs to be settled in the next three to four months. In the March quarter, the technology solutions provider booked a total contract value of new engagements worth $280 million compared with the $236 million booked in the previous quarter. The company aims to gain leadership in areas including cybersecurity, and is currently in advanced stages of discussion on certain acquisitions in such areas. 

The technology company, which provides engineering research and development services to automotive companies, announced its March quarter earnings on Monday. It reported a consolidated net profit of INR 2.45 billion, up nearly 31% on quarter, and consolidated revenue of INR 15.28 billion, up over 3%. On Monday, shares of the company closed 0.8% higher at INR 1,231.20 on the National Stock Exchange.  End

US$1 = INR 85.03

Edited by Akul Nishant Akhoury

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