KPIT Q2 profit grows 45 pc to Rs 66.7 cr on currency gains

NEW DELHI: IT solutions and services company KPIT Technologies today posted nearly 45 per cent jump in consolidated net profit to Rs 66.7 crore for the July- September on higher currency realisation and new contracts.

The Pune-based company had reported a net profit of Rs 46.1 crore for the same period last year.

Revenues of the company rose by nearly 24 per cent year-on-year to Rs 703 crore in the quarter under review, KPIT said in a filing to the BSE.

"We registered stable profitability on the back of higher currency realisation and increased strategic investments," KPIT CEO & Managing Director Kishor Patil said.

"We closed two large deals in excess of USD 10 million during the quarter and have created a robust pipeline of larger deals. This positions us well for stronger H2 performance," he added.

In USD terms, the revenue for the quarter grew by 8.5 per cent year-on-year to USD 112.24 million.

The company added 360 employee on net basis during the quarter.

During the quarter both engineering and IT businesses performed well in the APAC region and the company sees demand traction picking up in Europe, KPIT President (Strategic Relationships & Business Transformation) Sachin Tikekar said.

The company said that it is making investment to drive growth in the second half of the financial year.

"To support higher growth and volumes in H2, we are making investments in hiring of senior level industry specialists and on the training & development of the leadership team," Patil said.

It is imperative to invest into the business to continue growing at a fast pace and the rupee depreciation has provided the company an additional opportunity to invest in the right areas, KPIT said.