KPIT Tech tanks 7% in kneejerk reaction to Q2 results, recovers

Shares of KPIT Technologies plunged 7 per cent in Wednesday's trade in a kneejerk reaction to the IT firm’s September quarter results.

KPIT Technologies reported a 2.28 per cent quarter-on-quarter (QoQ) drop in net profit at Rs 83.48 crore for the September quarter compared with Rs 85.43 crore in June quarter. The bottom line was up 28.23 per cent over Rs 65.10 crore in the year-ago quarter.

Sales for the quarter rose 8.61 per cent sequentially to Rs 744.83 crore from Rs 685.72 crore in June quarter, while it was up 26 per cent over Rs 590.87 crore sales in the year-ago quarter.

Following the development, the scrip fell 6.79 per cent to hit a low of Rs 615.40 on BSE. It later recovered to trade at Rs 628.85 a piece, still down 4.75 per cent.

Ebit margin for the quarter fell to 14.2 per cent in September quarter from 14.9 per cent in the June quarter, KPIT Technologies said in a BSE filing. The year-ago Ebit margin stood at 12.7 per cent.

The IT major has guided for a 31-32 per cent revenue growth in constant currency (CC) terms. The organic growth outlook has been pegged at 23 per cent-plus against 18-21 per cent earlier.

The reported dollar growth will be impacted adversely due to cross currency headwinds, the IT firm said. The IT firm is expecting FY23 Ebitda margin in 18.5-19 per cent range on a likely improvement in net realisation and productivity.