KPIT Technologies Q2 earnings: Firm expects H2 performance to be better than H1, maintain profitability

Shares of KPIT Technologies were trading nearly 1.5% higher on Tuesday after the firm reported its Q2 earnings. KPIT Technologies shares gained 1.5% to Rs 1215 today against the previous close of Rs 1193.15. Total 0.89 lakh shares of the firm changed hands amounting to a turnover of Rs 10.66 crore. Market cap of the firm stood at Rs 33,133 crore. 

KPIT Technologies stock has fallen 14 per cent in a year and lost 19 per cent since beginning of the year.  
 
Meanwhile, management of the firm told Business Today that the firm expects H2 performance to be better than H1 and expects profitability to remain intact during the period. 

The firm clocked revenue growth at Rs 1,590.00 crore, up 3.25% quarter-on-quarter from Rs 1,540.00 crore in the previous quarter. Net profit remained flat at Rs 170.00 crore. EBIT increased marginally to Rs 246.00 crore with an improved margin of 15.50%. The company faced challenges in maintaining profit margins despite revenue growth.

The company's Earnings Before Interest and Taxes (EBIT) rose marginally to Rs 246.00 crore in Q2 from Rs 240.00 crore quarter-over-quarter. On a positive note, the EBIT margin improved to 15.50% from 15% in the previous quarter. 

Sachin Tikekar, Co-founder and Joint MD, KPIT Technlogies told Business Today that H2 is going to be better than H1, both in terms of growth in the revenues. The company expects to hold on to its profitability the second half in spite of the current pressures. 

Referring to the company's clients, Tikekar said car makers and truck makers have seen year-on-year profits fall of approximately 50% and they've not seen the bottom of it yet.

"However, they've been working very hard to figure out what's really their priority and where they can cut costs and programs. And that's something that they've been doing very diligently over the last year," he added. 

KPIT Tech provides engineering, research, and development services, particularly in the automotive and mobility sectors, focusing on software-defined vehicles.