KPIT Technologies Ltd reported a strong financial performance for the third quarter of FY25, maintaining its growth momentum for the 18th consecutive quarter. The company recorded a revenue of $176 million, reflecting a 17.4% year-on-year growth in constant currency terms. EBITDA stood at 21.1%, with a 20.8% annual increase, while net profit reached INR 1,870 million, marking a 20.4% rise compared to the previous year. Despite its steady expansion, the company faced currency headwinds that impacted revenue conversions, particularly due to the appreciation of the Indian Rupee against the Euro and Yen.
The company’s growth was primarily driven by its Powertrain and Connected Vehicles domains, alongside strong demand from the Asia region and the Passenger Car segment. KPIT secured new business worth $236 million during the quarter, reinforcing its leadership in software-driven mobility solutions. The company also declared an interim dividend of INR 2.50 per share, underlining its strong financial position.
KPIT raised its EBITDA margin outlook for FY25 to above 21%, up from the previously projected 20.5%, citing a favourable revenue mix and improved productivity. However, the overall revenue growth outlook remains unchanged at 18% to 22%. The company is focusing on AI-driven automotive solutions, with significant investments in AI technologies tailored for mobility applications. KPIT’s AI strategy aims to enhance safety, efficiency, and cost reduction for its clients while expanding its portfolio of intelligent and autonomous vehicle solutions.
The management remains optimistic about long-term prospects, particularly in emerging sub-verticals such as Trucks and Off-Highway Vehicles. KPIT is also expanding its global footprint by strengthening relationships with Passenger Car and Truck manufacturers in China and Europe outside Germany. New areas of interest among the company’s top 25 clients include vehicle cost reduction, cybersecurity, and data-driven services.
While KPIT’s financial performance remains robust, challenges persist. The company reported that currency fluctuations impacted its revenue, with the appreciation of the Rupee against key currencies affecting its international earnings. Despite this, high cash conversion during the quarter ensured a net cash balance of INR 14.2 billion, reinforcing financial stability.
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