KPIT Technologies soars 19%, hits new high on heavy volumes

In the past one month, the stock has zoomed 49 per cent, as compared to 1.3 per cent decline in the S&P BSE Sensex

Shares of KPIT Technologies, on Wednesday, zoomed 19 per cent to hit a new high of Rs 206.05 on the BSE in intra-day trade on the back of heavy volumes. The trading volumes on the counter more-than-doubled with a combined 4.94 million equity shares, representing 1.8 per cent of the company's total equity, having changed hands on the NSE and BSE, till 02:13 pm.

In the past one month, the IT consulting & software company's stock zoomed 49 per cent, as compared to 1.3 per cent decline in the S&P BSE Sensex.

On March 10, Kishor Parshuram Patil, the promoter of KPIT Technologies, had sold 6.05 million equity shares (2.21 per cent of the total equity capital of the company) worth Rs 94 crore via the open market on the NSE and BSE. The names of the buyers were not ascertained immediately. Post-transaction, Patil's stake in KPIT Technologies declined to 4.86 per cent from 7.07 per cent earlier.

The company, in an exchange filing, said that the purpose of this sale was to repay the majority of the outstanding loans of Kishor Patil, which were taken for the purchase of KPIT shares, post the composite scheme of merger and demerger. When the payment formalities are completed, the majority of the shares pledged by Kishor Patil will be free and we expect the balance pledged shares to be under 2 per cent of the total outstanding share capital of the company, the company said.

Meanwhile, in the October-December quarter (Q3FY21), KPIT reported 6.7 per cent sequential growth in revenues in dollar terms and 6.5 per cent in constant currency (CC) terms. Net profit jumped 49.8 per cent to Rs 41.8 crore from Rs 27.9 crore in the previous quarter. Operating margin (EBITDA) expanded 140 basis points (bps) at 15.7 per cent as compared to 14.3 per cent last quarter.

The company said revenue growth was led by electric powertrain and Europe geography. Execution started on the large deals won in earlier quarters. Profit growth led by higher operating margins, lower depreciation and higher yields on cash, it said.

The company’s management is confident of continuing with the growth and margin improvement momentum going into the next quarter. The automotive and mobility industry is prioritizing investments in new age technologies and the company is at the forefront of technology in these areas, it said.