For the June quarter, KPIT Tech’s net profit declined by 29% from the March quarter to ₹116 crore from ₹163 crore earlier.
Revenue for the quarter stood at ₹1,675 crore, a drop of 2% compared to the March quarter’s figure of ₹1,675 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹189 crore, a decline of 21.2% from the previous quarter, while margins narrowed by 270 basis points to 11.3% from 14% earlier.
What Had KPIT Tech Warned For Earlier?
KPIT Tech had highlighted on July 1, that it expects US Dollar revenue for the quarter to decline by 1% on a year-on-year basis.
It had to issue the warning owing to a sudden drop in revenue over the last few weeks. The drop in revenue came due to the recent profit warnings and a deteriorating business outlook at multiple OEMs.
The management had also clarified in its statement that the slowdown was not anticipated earlier and has materialized only recently.
KPIT Tech had also warned of its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter and net profit margin for the quarter to decline sequentially, with limited room for cost optimisation. It also went on to clarify that this is a short-term phenomenon and longer-term, cost-cutting by clients could accelerate outsourcing.
Ahead of the results, as many as 40 lakh shares of KPIT Tech had changed hands in a large transaction on the Bombay Stock Exchange, as per data available. Buyers and sellers in the transaction are not available.
Shares of KPIT Tech are now trading 4.3% higher after the results announcement at ₹628.8. The stock is still down 46% so far this year.
