KPIT Tech shares rise 7% as Q4 profit jumps 39%. Key details

KPIT Technologies shares climbed nearly 7% today after the software major reported a 7.2% rise in net profit for the quarter ended March on a quarter-on-quarter basis. On a year-on-year basis, net profit rose 38.60% to Rs 111.58 crore. On an annual basis, revenue zoomed 39% to Rs 3365 crore in FY23 against Rs 2432.38 crore in the previous fiscal. Net profit rose 40% to Rs 386.86 crore in FY23 against Rs 276.24 crore in FY22.

The earnings have come above analysts' estimates. Phillip Capital said the IT major was likely to report 36 per cent rise in Q4 profit on a 50 per cent year-on-year (YoY) surge in sales.

The stock touched a high of Rs 910 today, rising 6.81 per cent against the previous close of Rs 852 on BSE.

In a year, the stock has gained 72.34 per cent and gained 27.04 per cent this year. Total 4.05 lakh shares of the firm changed hands amounting to a turnover of Rs 35.83 crore on BSE.

Market cap of the firm stood at Rs 24,667 crore. The stock hit a 52-week low of Rs 440 on May 26, 2022 and a 52-week high of Rs 946.50 on March 31, 2023.

In terms of technicals, the relative strength index (RSI) of the stock stands at 51.1, signaling it's trading neither in the overbought zone nor in the oversold zone. KPIT Tech shares have a beta of 0.9, indicating low volatility in a year. Shares of KPIT Technologies are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

KPIT Technologies reported a 7.2% rise in net profit for the quarter ended March 2023 at Rs 111.6 crore against the net profit of Rs 104 crore in the December quarter of last fiscal. Revenue climbed 11% to Rs 1017.3 crore in the last quarter against Rs 651.7 crore for the December 2022 quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) climbed to Rs 194.25 crore in the last quarter against Rs169.86 crore in the December 2022 quarter.

The Board also recommended payment of dividend at the rate of Rs 2.65 per equity share of Rs 10/each for the financial Year 2022-23.

In FY 24, the firm expects constant currency revenue growth in the range of 27% to 30%. EBITDA margins are likely to be in the range of 19% to 20%.

The IT firm reported a consolidated net profit of Rs 111.6 crore in the March 2023 quarter (Q4 FY23), up 38.60 per cent from Rs 80.5 crore in the corresponding quarter a year ago. The company's revenue from operations stood at Rs 1017.36 crore in Q4 FY23, a year-on-year (YoY) growth of 56.09 per cent from Rs 651.76 crore in Q4 of FY22.

Kishor Patil, Co-founder, CEO and MD, KPIT said, “We have consistently delivered eleven sequential quarters of healthy growth in revenues and operating profits. On the back of a solid quarter and year performance and basis recent mega engagements and committed spend on software by our strategic clients, we are witnessing robust demand and increased visibility for the next 3-4 years. We are focused on helping our clients create new business models to transform their business. We start FY24 on a strong footing and expect to deliver CC revenue growth of 27%-30% with EBITDA margins between 19%-20%.”

The IT firm reported a 48% rise in consolidated net profit to Rs 104 crore in the December 2022 quarter (Q3 FY23), compared to Rs 70.3 crore in the same quarter a year ago. Revenue from operations climbed 47% to Rs 917.11 crore in Q3 FY23 against Rs 622.36 crore in Q3 FY22.

The earnings have come above analysts' estimates. PhillipCapital expected KPIT Tech to report a 36 per cent YoY rise in profit at Rs 107.30 crore compared with Rs 78.90 crore in the year-ago quarter. Revenue was seen rising 50.4 per cent YoY to Rs 980.30 crore compared with Rs 651.80 crore in the year-ago quarter. Revenue in dollar terms may grow 36.7 per cent YoY (7.8 per cent QoQ to $119 million, the brokerage said.