KPIT reports 3.45% quarter on quarter growth in net profit in Q2FY17

PUNE: IT consulting and product engineering firm KPIT reported revenues of Rs 8309.84 mn for the quarter ended 30th Sept, 2016, a 3.45% growth over the previous quarter and a year-on-year decline of 0/9%. The dollar revenue grew by 3.05% Q-o-Q, while the profit after tax stood at Rs 561.8mn, a growth of 2.05%.

Ravi Pandit, Group CEO, KPIT, said, "Over the last one year we have been investing in growth, specifically in account management and new sales. We are also investing in creation of technologies for software automation, digital technologies and industry specific solutions in engineering and business IT. We are beginning to see the reflection of these efforts into our quarterly numbers and we are confident of seeing more of it in the coming quarters.”

The EBITDA margins for the quarter grew at 11%, the company reported. Amongst geographies, APAC grew by 20.7% on a Q-o-Q basis while US grew by 2.67%. Europe declined sequentially by 9.2%. In terms of industry verticals, Automotive & Transportation grew by 8.45% on a Q-o-Q basis while Manufacturing and Energy & Utilities declined by 4.42% and 7.71% respectively.

Kishor Patil, MD, KPIT, said, "The quarter performance has been slightly better than our expectations with growth being led by Products & Platforms, Engineering and Digital Transformation. Though the ERP business was flattish during the quarter, we are seeing good traction in newer areas like SAP HANA, S4 HANA, SFSF and Oracle Cloud. In Products & Platforms, we are near to the end of our investment phase for existing products. We are finding greater acceptance for our products in the market which are at the cusp of profitable growth in this business.”