KPIT Technologies rallies 11% in 2 days, hits new high on strong Q4 results

For FY24 the company has guided CC revenue growth of 27-30 per cent & EBITDA margin of 19-20 per cent.

Shares of KPIT Technologies hit a record high of Rs 948.30, as they rallied 5 per cent on the BSE in Thursday’s intra-day trade. In past two trading days, the stock has soared 11 per cent after the IT firm reported a strong set of earnings for March quarter (Q4FY23) and healthy FY24 guidance. The stock surpassed its previous high of Rs 946.50, touched on March 31, 2023.

KPIT in Q4FY23 reported a constant currency (CC) growth of 8.5 per cent quarter-on-quarter (QoQ) while in dollar terms the revenue grew by 12 per cent QoQ to $123.8 million. In rupee terms the revenue grew by 10.9 per cent QoQ.

EBITDA (earnings before interest, taxes, depreciation, and amortization) of the company improved by 60 bps QoQ to 19.1 per cent due to revenue growth & operational efficiencies.

The company during the quarter added 523 net new employees & LTM attrition. The company during the quarter won TCV of $423 million including TCV of $250 million from Honda.

KPIT said the growth led by Strategic Accounts, Middleware and Architecture, Autonomous and Diagnostics. Technica revenues were marginally up as compared to last quarter. Q4FY23 also witnessed strategic new engagement closures, it added.

Meanwhile, for FY24 the company has guided for CC revenue growth of 27-30 per cent & EBITDA margin of 19-20 per cent.

“We have consistently delivered eleven sequential quarters of healthy growth in revenues and operating profits. On the back of a solid quarter and year performance and basis recent mega engagements and committed spend on software by our Strategic Clients, we are witnessing robust demand and increased visibility for the next 3-4 years,” the management said.