KPIT Cummins tumbles after Q1 earnings

KPIT Cummins Infosystems lost 4.26% to Rs 128 at 9:21 IST on BSE as the company's EBITDA margin dropped by 197 basis points on sequential basis to 15.86% in Q1 June 2013.

The Q1 result was announced after market hours on Tuesday, 23 July 2013.

Meanwhile, the S&P BSE Sensex was down 64 points or 0.32% at 20,238.13.

On BSE, 11,000 shares were traded in the counter as against average daily volume of 71,000 shares in the past two weeks.

The stock was volatile. The stock tumbled as much as 8.97% at the day's low of Rs 121.70 so far during the day. The stock rose as much as 0.59% at the day's high of Rs 134.50 so far during the day.

Shares of KPIT Cummins Infosystems had risen 6.78% in three trading sessions to settle at Rs 133.70 on Tuesday, 23 July 2013, from a recent low of Rs 125.20 on 18 July 2013.

KPIT Cummins Infosystems' consolidated net profit surged 17.5% to Rs 60.13 crore on 7.6% growth in revenue to Rs 613.21 crore in Q1 June 2013 over Q4 March 2013. Net profit margin expanded by 83 basis points (bps) quarter on quarter (QoQ) to 9.81% in Q1 June 2013. EBITDA (earnings before interest, taxation, depreciation and amortization) margin including the impact of full quarter wage hikes stood at 15.86%, down 197 bps on sequential basis.

Commenting on the company's Q1 June 2013 performance, Kishor Patil, MD & CEO, KPIT Cummins said, "Our performance this quarter is in line with the annual guidance, and we foresee the growth to be spread out across the year. We have built a robust deal pipeline in US and APAC, making us confident of stronger growth and profit performance in FY 2014. We gave annual wage hikes across the board this quarter. However, rupee depreciation during the quarter helped offset increased wage costs and maintain higher profits".

Sachin Tikekar, Board Member, President - Strategic Relationships and Business Transformation, KPIT Cummins said, "The start of FY 2014 has been encouraging despite a sluggish business environment. Our top five and top ten accounts showed significant QoQ growth. With several of these customers, we are seeing opportunities for transformational deals, where we are helping them devise strategies to enhance performance and remain competitive by selecting, deploying and maximizing right operational & business technologies".

KPIT Cummins Infosystems is a global IT consulting and product engineering company focused on co-innovating domain intensive technology solutions for manufacturing corporations (with special focus on Automotive, Hi-Tech and Industrials verticals).

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