KPIT Technologies' shares jumped about 6 per cent during the trading session on Tuesday ahead of the its quarterly results later in the day. A number of brokerage firms are positive on company's quarterly earnings, particularly considering its promotion to midcap category from smallcap in AMFI's latest classification.
Shares of KPIT Technologies gained about 6 per cent on Tuesday to Rs 750.85, before giving up its gains partially. The stock had settled at Rs 709.65 on Monday, whereas it has jumped about 40 per cent in the last six months.
KPIT Technologies, formerly known as KPIT Engineering, was demerged from Birlasoft in April 2019. The resultant entity's shares have zoomed about 590 per cent since then.
KPIT Technologies may report 16.1 per cent sequential growth in revenues in constant currency (CC) terms and 15.3 per cent QoQ growth in dollar revenue terms, said Phillip Capital. This brokerage sees profit for the quarter at Rs 91.10 crore, up 30.2 per cent YoY over Rs 70 crore in the same quarter last year.
Revenue is seen climbing 43.50 per cent YoY to Rs 892.80 crore from Rs 622.40 crore in the year-ago quarter. Ebit margin for the quarter is seen at 14.3 per cent against 13.5 per cent in the year-ago quarter, said Phillip Capital's report.
Investec is expecting KPIT Technologies to report a sequential organic revenue growth of 4.5 per cent in CC terms. Including Technica, it sees CC revenue growth at 16.9 per cent sequentially. This brokerage is estimating a flattish Ebitda margin, with Ebit largely to be impacted by amortization cost of Technica, it said.
Net-net, Investec sees profit at Rs 94.50 crore (up 34.5 per cent YoY, up 13.1 per cent QoQ). It sees revenues at Rs 913 crore, up 46.7 per cent YoY or 22.6 per cent QoQ. Dollar revenues are seen at 111 million. Ebit margin is pegged at 13.8 per cent against 14.2 per cent in September and 13.5 per cent in the year-ago quarter.
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