KPIT Technologies reports strong FY24 growth; targets 18-22% revenue growth in FY25 – ET Auto

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The company’s EBITDA for Q4 FY24 stood at 20.7%, marking a significant 160 basis points increase compared to the same period last year.

New Delhi: KPIT Technologies, a leading independent software integration partner in the automotive and mobility sectors, has reported 40.4% growth in revenue and a 56% increase in profits after tax (PAT) in FY 24 compared to the previous fiscal year.

The company’s growth trajectory was highlighted by a 15th consecutive quarter of steady revenue and EBITDA expansion. Revenues for FY24 reached USD 587 million, driven by broad-based growth across various business segments. Notably, the constant currency (CC) revenue surged by 39.1%, surpassing the heightened guidance for the year.

In the fourth quarter (Q4) of FY24, KPIT recorded revenues of USD 159 million, representing a year-on-year (Y-o-Y) growth of 28.5% and a quarter-on-quarter (Q-o-Q) growth of 6.6%. This growth was particularly propelled by the Middleware, Connected, and Autonomous domains, with expansion observed across multiple geographies, primarily led by Asia. Both passenger car and commercial vehicle verticals exhibited strong growth during this period .

The company’s EBITDA for Q4 FY24 stood at 20.7%, marking a significant 160 basis points increase compared to the same period last year. Likewise, the PAT for Q4 FY24 was reported at INR 1644 million, reflecting a Q-o-Q growth of 5.8% .

Looking ahead to FY25, KPIT anticipates maintaining strong growth momentum with a CC revenue growth projected in the range of 18-22%. The company aims to sustain an EBITDA margin of 20.5% or higher, demonstrating confidence in its operational efficiency and strategic direction. Additionally, KPIT disclosed a total contract value (TCV) of new engagements secured during Q4 FY24 amounting to USD 261 million .

In terms of talent acquisition and development, KPIT highlighted its commitment to fostering a skilled workforce, particularly in automotive software specialization. With a global employee count nearing 13,000, the company is focusing on competency development and leadership initiatives, with significant investments allocated towards upskilling in AI.

KPIT also announced a final dividend of INR 4.60 per share for FY24, resulting in a total dividend payout of INR 6.70 per share for the year, further underscoring its commitment to rewarding shareholders amidst robust growth.

Ravi Pandit, Co-founder and Chairman, KPIT, said, “Since our landmark demerger in 2019, we have been truly living our Vision of Reimagining Mobility with you for the creation of a cleaner, safer and smarter world. The world of Mobility is transforming at a pace faster than ever before. We are proud to be at the forefront of these technology transformations with focus on sustainability – for our clients, employees, internal operations and the world at large. Our 40%+ growth is a testimony to global needs and our expertise. We are confident about our performance going forward.”

Kishor Patil, Co-founder, CEO and MD, KPIT, said, “We have consistently delivered fifteen sequential quarters of healthy growth in revenues and operating profits. Software content inside and outside the vehicle is growing in areas of alternative fuel technologies, autonomous and connectivity. Global OEMs are pledged to changing their business model. Based on investments by our Strategic Clients, a strong pipeline and solid wins of $ 261 million in Q4, we continue to witness robust demand. We start FY25 on a strong footing and expect to deliver CC revenue growth of 18%-22% with EBITDA margins of 20.5%+.”

Sachin Tikekar, President and Joint MD, KPIT, said, “We start FY25 on the back of a solid Q4 and FY24 operational performance. We are uncompromising on our focus on Strategic Client Partnerships, Technology Innovations, People and Zero-Defect Deliveries. We will pivot our investments on enhancing domain practices and sharpen our focus on Commercial Vehicles and Asia strategy. We have launched a new ESOP scheme to strengthen the long term incentivization for our people. Our internal sustainability goals have been set and the prime focus in FY25 would be on execution towards achieving these goals.”

  • Published On Apr 29, 2024 at 08:38 PM IST

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