Home > News Releases > KPIT announces Q3FY18 results

KPIT announces Q3FY18 results

KPIT (BSE: 532400; NSE: KPIT), a global technology company specializing in providing IT Consulting and Product Engineering solutions and services to AutomotiveManufacturingEnergy and Utilities companies, today reported its consolidated financial results for the third quarter and nine months ended December 31, 2017.
Highlights for the quarter ended December 31, 2017
  • CC revenue was flat in Q3 FY18 as compared to Q2 FY18
  • Q3FY18 INR Revenues at Rs. 9,127.7 Million, a Y-o-Y growth of 10%
  • Q-o-Q Growth of 9.6% in absolute EBITDA
  • Q3FY18 PAT at Rs. 616.8 Million, a Q-o-Q growth of 3.3% and Y-o-Y decline of 16.2%
  • Net Cash Balance of Rs. 1,772 Million as at Q3 FY18 end
Management comments

Commenting on the performance of Q3 FY18, Kishor Patil, Co-founder, CEO & MD, KPIT said, “The current quarter performance was in line with our expectations with flattish revenues while there has been almost 100 bps improvement in our EBITDA margins, basis our continuing actions on profitability improvement. We continue to remain positive on the growth prospects and profitability improvement, going forward with healthy pipeline for remainder of the year

Sachin Tikekar, President & Board Member, KPIT said“The growth during the quarter was led by Europe whereas Americas revenues were flat. Variation in Asia was mainly on account of Products & Platforms. We continue to rely on Engineering and Digital as the major growth areas, though we also see positive developments in the newer areas of ERP Applications“.

Quick Summary

We wish you all a very Happy New Year 2018.

The calendar year has started on a positive outlook as the economy is looking forward to an overall growth as compared to past few years. With encouraging business environment, spend on IT and digital technologies is expected to increase. The traditional IT spend may not increase in that proportion, however spend on emerging technologies like digital will continue to grow at a faster pace. It will obviously translate into growth for us as we are continuously making investments and developing our capabilities in these new technologies.

We can look at our business broadly into 4 buckets viz. Engineering (~ 35% of revenue), Business IT (~41% of revenue), Digital (~20% of revenue) and Products and Platforms (~4%). While engineering and digital will be the leading growth drivers for us during the year, we see decent opportunities in both Oracle and SAP, especially on the newer technologies and smart AMS areas.

Services Update
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Engineering Servicesaccordian_minus

PES SBU contributed 39% of the total revenue for the quarter, depicting a sequential growth of 2.8%.

  • The traction areas for PES SBU continue to be Autonomous Driving, AUTOSAR, Conventional and Electric powertrain domains.
  • We need to continue working on profitability improvement for PES. We have made investments for growth and will continue to do so for future growth.
  • For CY2018, growth for this SBU would be driven by next-gen automotive technologies i.e. CASE (Connected, Autonomous, Shared and Electric).
  • In ePLM, most of the deal wins during the quarter are for implementation and support of PLM and ALM systems.
Thought Leadership (Engineering)
  • KPIT was a gold sponsor for ELIV Congress, 2017, October 18-19, 2017 held at Bonn, Germany. KPIT with its strategic partner, MicroFuzzy showcased array of solutions on Autonomous Driving, AUTOSAR, Connected Vehicle, Diagnostics and electric Powertrain.
  • KPIT hosted 3rd Diagnostics Future Trends Conference at Munich which acted as a platform for auto ecosystem and academia to discuss the best practices and future trends in Diagnostics space.
  • KPIT participated at the ITS World Congress at Montreal (Oct 29-Nov 1, 2017) and delivered a thought provoking session on “Collaboration – The Recipe for Successful Smart Cities Transportation in India” and on “Traffic Demand Modelling”.
  • KPIT participated in India Bike Week, the biggest biking event of India, 24-25th Nov 2017 in Goa and launched MaximusPro. The MaximusPro stall was rated among the top 5 stalls by NDTV Auto.
  • KPIT participated at The India – Taiwan smart city summit held at Bengaluru from Nov 23-25 2017 and delivered a session on “ITS innovation for public transport in India.
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