KPIT shares end 9% up after stellar quarterly performance

Shares of KPIT Technologies zoomed over 17 per cent in trade on Friday after the IT consulting and software firm reported a whopping 69 per cent quarter-on-quarter net profit growth in the September quarter to Rs 75.08 crore on strong improvement in operating profit performance.
 
The company had reported Rs 44.41 crore net profit in the June quarter.   

The stock ended 9.32 per cent up at Rs 134.85 after hitting an intraday high of Rs 144.65, up 17.26 per cent on the Bombay Stock Exchange (BSE).

The dollar revenue rose 5.3 per cent QoQ to $124.57 million, while revenues in rupee terms grew by 7.1% QoQ and 7.2% YoY to Rs 8,12.22 crore.

Income from operations grew 7.1% at Rs 812 crore on QoQ basis. EBITDA Margins for the quarter improved by 441 bps to 14.02% on sequential basis after absorbing wage hikes.

"The focus on profitability improvement over the last 6 months is showing good results, as we improved Q2FY16 EBITDA to 14%, despite wage hikes during the quarter," said Ravi Pandit, Co-founder, Chairman & Group CEO, KPIT.

"We will continue to work on profitability, predictability, people and growth during the remainder of the year, to further improve the operating metrics," he added.

"Though there will be some impact due to lower billing days in Q3, we are confident about the sustainability of the operating performance and intend to improve further in the coming quarters," said Kishor Patil, Co-founder, CEO & MD, KPIT said.