KPIT expects flattish revenue in Q2 as changes hit ERP biz

IT firm KPIT Technologies said that its revenue and profits may be flat in the second quarter, compared to first quarter of current fiscal, as ERP implementations revenue has been hit beyond anticipation.
"The company is going through internal changes in structure as well as external changes in the business environment. The company's traditional revenues from ERP implementations are affected more than anticipated earlier, whereas there is good traction in the newer areas of cloud and digital technologies," KPIT Technologies said in a BSE filing.
It said that at the beginning of the financial year, the company had stated revenues to be flattish in the first two quarters of the year.

"As a result of the above points, the company expects a drop in revenues of around 4 per cent in the first quarter with a consequent drop in profitability. We anticipate the revenues and profits to be flattish in Q2 over Q1 levels," KPIT said.
The company is yet to file its financial results for the first and second quarter of the current financial year.
KPIT Technologies has posted about 75 per cent jump in its consolidated net profit in last quarter of 2015-16 ended March 31, 2016, at Rs 88.5 crore compared to Rs 50.3 crore a year ago.

The net sales of KPIT Technologies increased to Rs 840.71 crore in the reported quarter from Rs 762.99 crore a year ago.

For the year ended March 31, 2016, the consolidated net profit of company declined to Rs 281.5 crore from Rs 236.98 crore a year ago.
The annual income of KPIT Technologies at the end of 2015-16 though increased to Rs 3,224.29 crore from Rs 2,989.91 crore a year ago.
Shares of KPIT Technologies closed at Rs 183.9 a unit, up by 2.17 per cent compared to previous close, at BSE today.