KPIT Technologies (KPITTECH) Q1 24/25 earnings summary

Executive summary

• Launched EcoVoyage 2030, a formal sustainability initiative targeting net zero by 2030, with annual targets and a focus on client solutions, internal operations, and employee engagement.

• Q1FY25 saw robust performance with consolidated revenue from operations of ₹13,646.3 million, up 23.1% year-over-year, led by Middleware, Powertrain, and Asia markets.

• Net profit for Q1FY25 rose to ₹2,041.6 million, up 52.4% year-over-year including one-time gains from the Qorix JV.

• $202 million in new engagements closed, with growth driven by top clients and expansion into truck, off-highway, and new geographies.

• Strengthened presence in China and continued focus on leadership development, salary increments, and ESOP programs to retain talent.

Financial highlights

• Q1FY25 revenue from operations was ₹13,646 million, up from ₹10,976 million in Q1FY24; total income reached ₹14,190.7 million.

• PAT for Q1FY25 was ₹2,042 million, up from ₹1,344 million in Q1FY24; EBITDA margin improved to 21.1%.

• Net cash balance at quarter-end was ₹10.01 billion, with a net cash addition of ₹1.5 billion.

• Five large deals closed in the quarter, totaling $120–130 million, with contributions from the U.S., Europe, and Asia.

• Earnings per share (EPS) for Q1FY25 was ₹7.53 basic, up from ₹4.95 in Q1FY24.

Outlook and guidance

• Full-year revenue growth guidance reiterated at 18–20%, with management expecting continued momentum from investments in differentiated offerings and new geographies.

• Next quarter will see a 2.8% impact from salary increments and ESOP costs, with ESOP impact rising from 0.7% to 1%.

• Guidance for EBITDA margin remains at 20.5%+ for the year.

• Focus remains on productivity, competency improvement, and sustainability initiatives.