Pune based IT consulting and product engineering company KPIT reported a profit after tax of Rs 76cr for the quarter ended March31,2018, up 23.2% quarter on quarter, and 41.6% year on year. The revenue for the quarter was Rs up 6% sequentially and 12.6% YoY.
The company also announced its annual results for FY18. Profit after tax was up 6.02 % at Rs 252.8cr and revenues up 10.3% at Rs 3665.5cr. In dollar terms revenue was up 14.8% at $567.7mn.
The company declared a growth outlook of 8%-10% in USD revenue for FY19.
Ravi Pandit, Chairman & Group CEO, KPIT said, “We are encouraged by the revenue growth during the quarter, led by engineering and certain segments of Business IT viz. Digital and ePLM. We will continue to invest in future technologies relevant for our customers. We are progressing well on the Merger-Demerger transaction, with all regulatory filings on track.”
Earlier in the year, the company announced a merger and demerger between itself and Birlasoft, a part of the CK Birla Group. The merger of KPIT and Birlasoft will create a USD 700+ Million entity which will immediately demerge into two separate companies — KPIT Technologies (USD 220+ mnllion revenue company, post-merger), which will evolve from the existing engineering business at KPIT and Birlasoft (a USD 500+ mn revenue company, post-merger), a new digital business IT services company focusing on the mid-tier IT space formed by combining Birlasoft with the KPITs IT business.
Kishor Patil, Co-founder, CEO & MD, KPIT said, “We are back to industry leading growth, with FY18 registering a healthy growth of ~15%. We have seen reassuring margin improvement in Business IT during the year. We expect to register a growth of 8% to 10% in USD revenues for FY19 with operational EBITDA Margins in the range of 11.5% to 12.5%.”