KPIT Tech rallies on upbeat Q2 numbers
Shares of KPIT Technologies surged over 17 per cent in Friday's trade after the company reported a 5.3 per cent quarter-on-quarter (QoQ) growth.
By ET Online |
NEW DELHI: Shares of KPIT Technologies surged 9.32 per cent to end the day at Rs 134.85 in Friday's trade after the company reported a 5.3 per cent quarter-on-quarter (QoQ) growth in September quarter dollar revenue at $124.57 million.
This was in line with its bigger IT peers TCS (up 3 per cent), Infosys (8.7 per cent), HCL Technologies (8 per cent) and Wipro (2.1 per cent), which have reported revenue growth anywhere between 2.1 per cent and 8.7 per cent.
The stock surged 17.26 per cent to hit a high of Rs 123.35 on BSE. But despite Friday’s surge, the scrip was still languishing around 38 per cent below its 52-week high of Rs 232.70 which it hit on January 23.
“KPIT has shown good growth in both of its key verticals — SAP which was lagging and US auto vertical. Those verticals have clearly turned around. Let us see the management commentary to know whether it is a structural turnaround," said arag Thakkar, Head of Institutional Sales, HDFC Securities.
On a sequential basis, the SBUs products & platforms (P&P) segment grew 21.5 per cent, followed by SAP (9.4 per cent ) and product engineering services (9.2 per cent), which reported healthy expansion.
In terms of geography, the company said there was growth across markets. Regions such as Europe and Apac grew 14.9 per cent and 14.6 per cent, respectively. The growth in the US market stood at 1.2 per cent for the quarter.
“The focus on improving profitability over the past six months is showing good results, as we improved Q2FY16 Ebitda to 14 per cent, despite wage hikes during the quarter. We will continue to work on profitability, predictability, people and growth during the remainder of the year, to further improve the operating metrics,” said Ravi Pandit, co-founder, chairman & Group CEO at KPIT technologies.
In rupee terms, PAT jumped 69.07 per cent QoQ to Rs 75.08 crore during the quarter while sales grew 7.12 per cent to Rs 8,122.52 crore. "Though there will be some impact due to lower billing days in Q3, we are confident of the sustainability of operating performance and intend to improve it further in the coming quarters," said Kishor Patil, co-founder, CEO & MD, KPIT.
KPIT's numbers were released after markets hours on Wednesday.
This was in line with its bigger IT peers TCS (up 3 per cent), Infosys (8.7 per cent), HCL Technologies (8 per cent) and Wipro (2.1 per cent), which have reported revenue growth anywhere between 2.1 per cent and 8.7 per cent.
The stock surged 17.26 per cent to hit a high of Rs 123.35 on BSE. But despite Friday’s surge, the scrip was still languishing around 38 per cent below its 52-week high of Rs 232.70 which it hit on January 23.
“KPIT has shown good growth in both of its key verticals — SAP which was lagging and US auto vertical. Those verticals have clearly turned around. Let us see the management commentary to know whether it is a structural turnaround," said arag Thakkar, Head of Institutional Sales, HDFC Securities.
On a sequential basis, the SBUs products & platforms (P&P) segment grew 21.5 per cent, followed by SAP (9.4 per cent ) and product engineering services (9.2 per cent), which reported healthy expansion.
In terms of geography, the company said there was growth across markets. Regions such as Europe and Apac grew 14.9 per cent and 14.6 per cent, respectively. The growth in the US market stood at 1.2 per cent for the quarter.
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“The focus on improving profitability over the past six months is showing good results, as we improved Q2FY16 Ebitda to 14 per cent, despite wage hikes during the quarter. We will continue to work on profitability, predictability, people and growth during the remainder of the year, to further improve the operating metrics,” said Ravi Pandit, co-founder, chairman & Group CEO at KPIT technologies.
In rupee terms, PAT jumped 69.07 per cent QoQ to Rs 75.08 crore during the quarter while sales grew 7.12 per cent to Rs 8,122.52 crore. "Though there will be some impact due to lower billing days in Q3, we are confident of the sustainability of operating performance and intend to improve it further in the coming quarters," said Kishor Patil, co-founder, CEO & MD, KPIT.
KPIT's numbers were released after markets hours on Wednesday.
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