KPIT technologies posts 22.5% decline in Q2 net profit to Rs 28 cr

Tech firm KPIT Technologies on Wednesday posted a 22.5 per cent fall in its consolidated net profit to Rs 27.8 crore for the quarter ended September 2020.

The company had reported a net profit (attributable to owners of the company) of Rs 35.9 crore in the year-ago period, KPIT Technologies said in a regulatory filing.

Its revenue from operations declined 10.7 per cent to Rs 485.4 crore for the quarter under review as compared to Rs 544 crore in the year-ago period, it added.

On sequential basis, net profit was higher by 15.8 per cent from Rs 24 crore, while revenue from operations was lower by 1.4 per cent from Rs 492.7 crore in the April-June 2020 quarter.

"The revenue for the quarter was in line with our expectation and we delivered better on profitability," KPIT Co-founder, CEO and MD Kishor Patil said.

Change in revenue mix helped grow volumes and the company expects offshoring to increase for a couple of quarters, he added.

"Despite rupee appreciation, we increased operating margins on the back of improved operational efficiency and productivity. We are confident of growth and further margin improvement in H2 over H1," he said.

Sachin Tikekar, President and Whole-time Director at KPIT, said the company's clients are witnessing a steady build up in their operations and it persists to drive zero-defect delivery and uphold its commitments to them.

"We continue to invest in relevant practices aligned to CASE (Connected, Autonomous, Shared, Electric). Our pipeline remains strong with a few strategic deals, reiterating our position as a software integrator partner to our clients," he added.

At the end of the second quarter, KPIT's headcount was at 6,630.