KPIT Technologies, an independent software integration partner in the automotive and mobility ecosystem, reported robust financial results for Q3 FY24, showcasing significant growth in net profit and consolidated revenue. The company's performance highlighted a 55% year-on-year (Y-o-Y) increase in net profit and a 31.5% Y-o-Y growth in constant currency (CC) revenue.
In Q3 FY24, KPIT Technologies achieved a revenue milestone of USD 149 million, reflecting a 35% Y-o-Y growth in USD revenue. The growth trend was sustained through a 4.3% Q-o-Q increase in CC revenue and a 2.7% Q-o-Q growth in USD revenue. The revenue surge was primarily attributed to the Powertrain, Autonomous, and Connected domains, with notable contributions from the Passenger Vehicles segment in Europe and Asia.
The company reported a strong financial performance in terms of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) and net profit. The EBITDA margin expanded to 20.6%, indicating a growth of 52.2% Y-o-Y and 7.7% Q-o-Q. Net profit witnessed a remarkable increase of 54.6% Y-o-Y and 10.3% Q-o-Q. The margin expansion was attributed to improved productivity, operating leverage, and enhanced profitability rates, driven by the addition of approximately 600 new employees and quarterly promotions.
KPIT Technologies achieved a Total Contract Value (TCV) of new engagements worth $189 million during Q3 FY24, demonstrating its continued success in securing significant business commitments. The global employee count crossed 12,700, and the company emphasised increased investments in competency development to effectively deliver complex engagements.
The aforementioned collaboration aims to leverage N-Dreams' casual gaming platform AirConsole, combined with KPIT's integration expertise, to transform the Cockpit of the Future. The partnership targets enhancing in-car experiences, allowing families and friends to enjoy entertainment while charging their electric vehicles, with a seamless transition to their homes. This initiative is expected to unlock opportunities for consumer engagement and monetisation for automotive and mobility OEMs in existing and upcoming vehicle models. BMW is already the first client for development of in-car gaming for the i7.
Kishor Patil, Co-founder, CEO, and MD of KPIT, noted that the revenues aligned with expectations, and the profitability exceeded projections, driven by a robust pipeline and sustained demand due to new technology investments by strategic clients.
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