KPIT Q2 net profit rises 37 pc to Rs 82 cr

IT firm KPIT Wednesday said its net profit grew 37.4 per cent to Rs 82 crore in the second quarter ended September 30.

It had reported a net profit of Rs 59.7 crore in the year-ago period, KPIT said in a statement.

The company's sales increased 17.7 per cent to Rs 1,078.8 crore in the reported period from Rs 916 crore in the same quarter a year ago, it added.

"The quarter gone by witnessed solid improvement in operating margins despite wage hikes, driven by operating efficiencies and better quality of revenues. We are on track to achieve our annual revenue guidance and exceed the annual operating margins guidance," KPIT co-founder, CEO and MD Kishor Patil said.

The merger-demerger process is progressing well, as per planned timelines, he added.

Earlier in the year, the company had announced a merger-demerger transaction, involving KPIT and Birlasoft. The merger of KPIT and Birlasoft will create an over USD 700 million entity that will be demerged into two separate companies.

Sachin Tikekar, president and board member at KPIT, said the company is "progressing well on the business familiarisation process with Birlasoft".

The company incurred around Rs 17.2 crore as expenses towards the merger-demerger transaction during the said quarter as compared to Rs 10.8 crore in the previous quarter.

"Engineering and Digital revenues continue to grow at a much faster rate for us. We expect the trend to continue during the remainder of the year," Tikekar said.