KPIT Reports Strong Q2 FY25 Financial Results
Pune-based software integration partner, KPIT, has announced impressive financial results for the second quarter of FY25. The company witnessed significant growth across various key metrics, highlighting its robust position in the automotive and mobility sectors.
Surge in Profit After Tax (PAT)
KPIT recorded a remarkable 44.7% YoY increase in its profit after tax (PAT) for Q2 FY25. This advancement marked the company’s 17th consecutive quarter of growth. The overall PAT reached Rs 2037 million, mainly driven by a one-time gain during this period.
Impressive Revenue Growth
KPIT’s revenue for Q2 FY25 stood at $173 million, reflecting constant currency (CC) growth of 20.1% YoY, along with a dollar revenue increase of 19.3% YoY. The company experienced significant progress in the middleware and powertrain sectors, with commendable contributions from the Asian market and the passenger car segment.
Increasing EBITDA Margin
The company reported an EBITDA margin of 20.8% for the quarter, showcasing a substantial 27.7% YoY increase. This growth highlights KPIT’s effective cost management and operational efficiency.
New Engagements and Expansion
KPIT successfully secured new engagements valued at $207 million during Q2 FY25, highlighting the company’s ability to attract new clients and retain existing ones. With a global team of over 13,000 automotive software specialists, KPIT is committed to enhancing productivity and skill development, notably through leveraging artificial intelligence (AI) for operational efficiency.
The company’s outlook for the entire fiscal year, from FY25, remained positive with an anticipated CC revenue growth of 18-22% and an EBITDA margin exceeding 20.5%. KPIT aims to stay at the forefront of innovation and competitiveness in the market while empowering its clients.
CEO’s Positive Comments
Kishor Patil, Co-founder, CEO, and Managing Director of KPIT, expressed his satisfaction with the performance of Q2 FY25, underscoring the balanced growth the company achieved. Patil noted that the automotive and mobility industries faced constant pressure to adapt rapidly to evolving regulations, reduce vehicle costs, and fulfill dynamic consumer preferences.
Patil further highlighted KPIT’s commitment to investing in technology and markets ahead of demand. Their aim is to ensure that their top 25 clients remain ahead of the curve and stay innovative and competitive in an ever-changing landscape.
He confidently reaffirmed the company’s growth outlook for the full fiscal year and mentioned that the board had passed a resolution for fund-raising in anticipation of strategic opportunities that may arise. However, it is worth noting that actual fund-raising will only proceed once these potential prospects reach advanced discussion stages.
In addition to the company’s dedication to growth and market expansion, KPIT emphasized its focus on supporting its workforce through the introduction of industry-leading benefits, promotions, and salary increases. Such conscious efforts will aid the company in attracting and retaining top talent in the automotive software industry.
