KPIT drops on profit booking after declaring good Q3 outcome

KPIT Technologies lost 4.48% to Rs 138.45 at 12:16 IST on BSE on profit booking after gaining 4.81% in the preceding five trading sessions to settle at Rs 144.95 yesterday, 18 January 2017, from its close of Rs 138.30 on 11 January 2017.

Meanwhile, the S&P BSE Sensex was up 75.31 points or 0.28% at 27,332.95

On the BSE, 2.51 lakh shares were traded on the counter so far as against average daily volume of 97,339 shares in the past one quarter. The stock had hit a high of Rs 142.30 and a low of Rs 136 so far during the day.

The stock had hit a 52-week high of Rs 196.60 on 21 June 2016. The stock had hit a 52-week low of Rs 108.45 on 12 February 2016. The stock had outperformed the market over the past 30 days till 18 January 2017, rising 6% compared with the 3.61% rise in the Sensex. The scrip also outperformed the market in past one quarter, gaining 2.37% as against Sensex's 3.10% decline.

The small-cap company has equity capital of Rs 39.50 crore. Face value per share is Rs 2.

KPIT Technologies' consolidated net profit rose 30.97% to Rs 73.58 crore on 2.96% rise in total income to Rs 859.10 crore in Q3 December 2016 over Q2 September 2016. The Q3 December 2016 bottomline was boosted by an exceptional item of Rs 26.09 crore relating to the gain on sale of company's entire stake in KPIT Medini Technologies AG with effect from 1 November 2016. The result was announced after market hours yesterday, 18 January 2017.

KPIT Technologies said that the proceeds from sale of KPIT Medini Technologies in Germany were used towards a strategic partnership with a German engineering services company, Micro Fuzzy.

Consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) margin contracted 0.82% to 10.18% in Q3 December 2016 from 11% in Q2 September 2016. However, net profit margin expanded 2.1% to 8.86% in Q3 December 2016 from 6.76% in Q2 September 2016

Kishor Patil, KPIT Technologies' co-founder CEO and MD said that the company will continue to focus on growth with effective account management and new technology solutions for focus verticals. The cash flow during Q3 December 2016 was encouraging and the company will continue to build further on the same, Kishor Patil said.

KPIT Technologies is a global technology company focused on providing technology solutions and expertise to automotive and transportation companies, government bodies, manufacturing, energy and utilities companies.

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