KPIT Tech Q3 results, dividend today: Profit may grow up to 52%; FY24 guidance to stay intact
KPIT Technologies Q3 results: Deal wins are seen in $200-250 million range. KPIT may maintain its FY2024 revenue growth guidance of 37 per cent-plus in constant currency terms and also Ebitda margin outlook of 20 per cent.
- Jan 30, 2024,
- Updated Jan 30, 2024 7:29 AM IST
KPIT Technologies Ltd would be announcing its December quarter results on Tuesday while its board would also consider a proposal on interim dividend later in the day. Brokerages said investor would be focusing on indications of mega deals in pipeline, updates on priorities of automotive clients in 2024, and any commentary on threat of insourcing by few clients.
Any white-spaces that need to be addressed to continue to participate in electrification and digitalisation initiatives by auto OEMs and tier-1 suppliers, evolution of competitive landscape as new connected vehicle platforms are launched and stabilised and as activity shifts towards cloud-based software application development, and implications on pricing over medium-term as some of the development programs conclude would also be keenly watched, Kotak Institutional Equities said.
Net-net, the IT firm is seen clocking 44-52 per cent rise in net profit for the December quarter on 35 per cent rise in revenue. Any major client specific issues, especially from Europe, given the prevailing geopolitical concerns would also be watched. Add to that would be update on the recently announced M&As and future inorganic and capital allocation plans that would be on investor radar.
Kotak is expecting profit to jump 51.1 per cent YoY to Rs 154 crore while it sees revenue climbing 36.6 per cent to Rs 1,253 crore. It sees Ebit growing 63 per cent to Rs 211.10 crore while Ebit margin is seen coming in at 16.8 per cent compared with 16 per cent in the September quarter and 14.1 per cent in the year-ago quarter. Deal wins are seen in $200-250 million range. KPIT may maintain its FY2024 revenue growth guidance of 37 per cent-plus in constant currency terms and also Ebitda margin outlook of 20 per cent.
The IT firm suggested that the record date for the purpose for the interim dividend, if declared, will be intimated separately.
Equirus Securities expecting profit for KPIT Tech soaring 43.90 per cent YoY to Rs 144.60 crore on 35.40 per cent YoY surge in revenue at Rs 1,242.10 crore. "We expect US$ revenue to grow 2.8 per cent QoQ (CC growth of around 2.8 per cent QoQ) led by ramp-up of earlier won deals. EBIT margins are expected to improve marginally 19 bps qoq. We expect other income to dip QoQ with expectations of lower forex income," it said.
PhillipCapital expects the bottom line to grow 52 per cent to Rs 152.80 crore on 36.1 per cent YoY jump in sales at Rs 1,248.60 crore.
"We expect strong CC revenue of growth +4.1% qoq on continued traction in Auto ER&D spends. Expect TCV in the range of $150-200 million range, similar to earlier quarters Margins are expected to expand by +50 bps on strong growth and absence of wage hikes," it said. This brokerage suggested that investors would watch out for FY24 guidance update, deal wins and pipeline and spending outlook of US and EU auto OEMs.
Also read: Adani Total Gas to share Q3 results, host earnings call with investors today
KPIT Technologies Ltd would be announcing its December quarter results on Tuesday while its board would also consider a proposal on interim dividend later in the day. Brokerages said investor would be focusing on indications of mega deals in pipeline, updates on priorities of automotive clients in 2024, and any commentary on threat of insourcing by few clients.
Any white-spaces that need to be addressed to continue to participate in electrification and digitalisation initiatives by auto OEMs and tier-1 suppliers, evolution of competitive landscape as new connected vehicle platforms are launched and stabilised and as activity shifts towards cloud-based software application development, and implications on pricing over medium-term as some of the development programs conclude would also be keenly watched, Kotak Institutional Equities said.
Net-net, the IT firm is seen clocking 44-52 per cent rise in net profit for the December quarter on 35 per cent rise in revenue. Any major client specific issues, especially from Europe, given the prevailing geopolitical concerns would also be watched. Add to that would be update on the recently announced M&As and future inorganic and capital allocation plans that would be on investor radar.
Kotak is expecting profit to jump 51.1 per cent YoY to Rs 154 crore while it sees revenue climbing 36.6 per cent to Rs 1,253 crore. It sees Ebit growing 63 per cent to Rs 211.10 crore while Ebit margin is seen coming in at 16.8 per cent compared with 16 per cent in the September quarter and 14.1 per cent in the year-ago quarter. Deal wins are seen in $200-250 million range. KPIT may maintain its FY2024 revenue growth guidance of 37 per cent-plus in constant currency terms and also Ebitda margin outlook of 20 per cent.
The IT firm suggested that the record date for the purpose for the interim dividend, if declared, will be intimated separately.
Equirus Securities expecting profit for KPIT Tech soaring 43.90 per cent YoY to Rs 144.60 crore on 35.40 per cent YoY surge in revenue at Rs 1,242.10 crore. "We expect US$ revenue to grow 2.8 per cent QoQ (CC growth of around 2.8 per cent QoQ) led by ramp-up of earlier won deals. EBIT margins are expected to improve marginally 19 bps qoq. We expect other income to dip QoQ with expectations of lower forex income," it said.
PhillipCapital expects the bottom line to grow 52 per cent to Rs 152.80 crore on 36.1 per cent YoY jump in sales at Rs 1,248.60 crore.
"We expect strong CC revenue of growth +4.1% qoq on continued traction in Auto ER&D spends. Expect TCV in the range of $150-200 million range, similar to earlier quarters Margins are expected to expand by +50 bps on strong growth and absence of wage hikes," it said. This brokerage suggested that investors would watch out for FY24 guidance update, deal wins and pipeline and spending outlook of US and EU auto OEMs.
Also read: Adani Total Gas to share Q3 results, host earnings call with investors today