Business Environment Uncertain
KPIT Technologies says ramping up of client wins moving slower than expected Apr-Jun
This story was originally published at 18:52 IST on 23 June 2025
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--KPIT Tech: Caresoft ops buy to contribute around 4% growth in FY26 vs FY25
--KPIT Tech: Overall business environment uncertain on geopolitical woes
--KPIT Tech:Overall business environment uncertain on ambiguity about tariffs
--KPIT Tech: Order pipeline strong but conversions much slower than expected
--KPIT Tech: Expect offshoring to grow further with an intent to lower costs
--KPIT Tech: Do not expect any one-time gains in Apr-Jun
--KPIT Tech: Substantial order pipeline moving in positive direction
--KPIT Tech: Europe operations look positive; US, Asia bit uncertain
--KPIT Tech: See Caresoft ops revenues to consolidate from start of Sept qtr
NEW DELHI – In a quarterly update, KPIT Technologies Ltd. Monday said ramp-ups for recent client wins are progressing at a slower pace than anticipated at the end of the March quarter. Giving the update in a stock exchange filing, the company said the business environment continues to be uncertain with rising geopolitical concerns and ambiguity around the tariff scenario.
The company said its deal "pipeline continues to be strong, though the conversions are much slower than expected. Substantial pipeline, however, is moving in a positive direction." The company said as far as geographies are concerned, Europe is looking positive but USA and Asia are uncertain.
Giving an update on its recent acquisition of 100% stake in US-based Caresoft Global Technologies Inc. and three other Caresoft entities, KPIT Technologies said the deal is expected to close by the end of June quarter and it expects revenues of the acquired business to start getting consolidated from the September quarter.
According to KPIT Technologies, the Caresoft entities' consolidation will contribute around 4% to revenue growth in the financial year 2025-26 (Apr-Mar) over FY25. The acquisition will augment the company's growth in the trucks and off-highway segment and accelerate its foray into China's market, the company said.
On its recent order wins, the company said "there is part cannibalization of our own revenues due to limited budgets available and spend happening in immediate priority areas". It said it expects to see an increase in offshoring to lower overall costs.
The benefit of one-time gains that aided the company's net profit growth in the March quarter will not be available in the June quarter, KPIT Technologies said, as no such gain is expected. Further, "there will be some additional deficits in other income due to the sudden movement in forex (foreign exchange) rates," the company said.
Monday, shares of KPIT Technologies ended 0.3% lower at INR 1,390.30 on the National Stock Exchange. End
Reported by Rajesh Gajra
Edited by Rajeev Pai
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