KPIT Technologies Limited has informed the Exchange about Investor Presentation
July 25, 2023
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001.
Scrip ID: KPITTECH Scrip Code: 542651
National Stock Exchange of India Ltd., Exchange Plaza, C/1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai – 400051.
Symbol: KPITTECH Series: EQ
Kind Attn: The Manager, Department of Corporate Services
Kind Attn: The Manager, Listing Department
Subject:- Investor Update – Q1 FY 2024.
Dear Sir / Madam,
Please find enclosed the investor Update – Q1 FY 2024.
Kindly take the same on your records.
Thanking you.
Yours faithfully,
For KPIT Technologies Limited
Nida Deshpande Company Secretary & Compliance Officer
Encl.: - as above
KPIT Technologies Limited Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Maan, Taluka-Mulshi, Hinjawadi, Pune-411057, India. CIN: L74999PN2018PLC174192
O +91 20 6770 6000 E info@kpit.com W kpit.com
Reimagining Mobility with YOU
July 25, 2023
Investor Update Q1FY24
KPIT Technologies Ltd.
Forward Looking Statements
Some of the statements in this update that are not historical facts, are forward-looking statements. These forward-looking statements include our financial and growth projections, as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the competitive market for the type of services and solutions that we offer, market conditions that could cause our clients to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry. In certain cases, the numbers reported in this update might be rounded off to the nearest whole number.
7/25/2023
2
•
1 March 2021
Performance Overview
Q1FY24
Reimagining Mobility with YOU
Performance Overview
1
Q1FY24 CC Revenue grows 51.7% Y-o-Y
Q1FY24 Profit (PAT) grows 56.9% Y-o-Y
M Reported $ Revenue growth of 49% Y-o-Y 1
7.1% CC growth, 8.2% Reported $ growth, Q-o-Q
Revenue
2 Net Profit
Q1FY24 Net Profit at ₹ 1,340* M 20.1% Q-o-Q growth in Net Profit
3
EBITDA
Q1FY24 EBITDA at 20% Y-o-Y EBITDA growth of 65.2%, Q-o-Q 13.3%
4
Wins and Pipeline
$ 190M worth engagements closed in the quarter Healthy Pipeline level across practices
*In line with IND AS 103, a one-time gain of ₹ 134 M resulting from remeasuring of earlier FMS equity stake at the acquisition date FMV has been taken in Q1FY24, excluding which PAT is ₹ 1,206 M
Performance Highlights
01
led by Strategic Accounts, Middleware and Growth Architecture, Electric Powertrain and Connected Vehicles. Balance 75% stake in FMS acquired during the quarter. FMS contributed USD 1.7 M to revenue during the quarter
02
EBITDA margin expansion of 90 bps for the quarter led by revenue growth resulting in fixed costs leverage and operational efficiencies.
Impact of Purchase Price Allocation (FMS acquisition) of ₹ 11.4 M reflected in Depreciation. One time gain of ₹ 134 M accounted for in the quarter, resulting from remeasuring of earlier FMS equity stake, at acquisition date FMV. Q1FY24 other income was higher as compared to last quarter due to lower loss on realization and ₹ depreciation against the Euro & GBP. ETR increased Q-o-Q due to absence of one-time tax credits reported last quarter. Net Cash at quarter end stood at ₹ 5.26 billion post Acquisition payouts of ₹ 2,429 million (Technica, FMS and Somit). DSO stood at 50 days.
03
04
7/25/2023
5
Additional facts - timeseries Revenue $ M
Consistent Performance
133.9
123.8
110.5
71.1 72.8 77.2 76.9 76.9
65.3 65.3 69.7 74.5 77.2 80.4 83.7 87.1 89.9 94.2
12 Consecutive Quarters of Steady Revenue Growth
EBITDA ₹ M
2,200
1,943
1,699
639 739 727 737 751 662 697 811 931 981 1,0411,1501,2141,3321,382
12 Consecutive Quarters of Steady EBITDA Growth
7/25/2023
6
Management Quotes
Kishor Patil, Co-founder, CEO and MD, KPIT said,”. We have started the year on a positive note and have delivered a robust all-round performance in line with our expectations of a stronger first half. Opportunities remain stronger as mobility players continue to invest in new technologies, in the areas of electrification, vehicle autonomy, connectivity and personalization. We have a healthy pipeline and are slightly ahead in the ramp up of the mega strategic engagements announced last year. This gives us a fair medium-term visibility and we are confident of reaching our stated outlook of revenue growth and operating margins for FY2024”.
Sachin Tikekar, Co-founder and Joint MD, KPIT said,” We are experiencing greater traction with our strategic clients as we move further in creating trusted partnerships with our clients to help them accelerate their transformation. The attrition has been consistently falling over the last 3 quarters. We are investing in improving the quality of hires and building the right competencies and technologies to enable flawless execution. We have started baselining sustainability and co-creating a roadmap with our employees and look forward to scaling our impact in creating a cleaner, smarter, safer world in the years to come through our offerings, operations, and employees.”.
7/25/2023
7
Cash Flow – Major Movement ₹ M
Increase in Working Capital – 1,695
Technica Payout – 1,784 FMS Payout - 624 SOMIT Payout - 21 Capex – 465
Cash and Cash Equivalents break-up
In Investment Accounts (in India)
In Investment Accounts (outside India)
In Operating Accounts
TOTAL
₹ M
1,070
887
3,770
5,727
NET CASH (₹ M)
Q1FY24 Q4FY23
Gross Cash
5,727
6,288
Long Term Debt
NIL
NIL
Short Term Debt
465*
486*
NET CASH
5,262
5,802
DSO Q1FY24 end : 50 Days
* Debt in the books of Technica which will be repaid over the next 4 quarters
7/25/2023
8
New Engagements
TCV of new engagements won during the Quarter : $ 190 million
Multiple strategic engagements in autonomous driving, body electronics and diagnostics for a leading European Car Manufacturer
A few strategic engagements in the electric powertrain domain for a leading American Car Manufacturer
Several engagements in the middleware and architecture consulting and electric powertrain domains for a leading American Car Manufacturer
Multiple strategic programs in autonomous driving and body electronics domains for a leading European Car Manufacturer.
Various strategic engagements in the vehicle engineering and connected domains for a leading American Commercial Vehicle Manufacturer
7/25/2023
9
FY24 Outlook
CC Revenue growth in the range of 27% to 30%
EBITDA Margin in the 19% to 20% range
Practice & Technology Alignment of Practices towards SDV. Technology Investments in related areas. Cross – practice collaboration, AI adoption
Delivery and Operations Robust competency framework and relentless execution. Agile methodology adoption. Building scale via automation and productivity
People Improvement in quality of incoming talent. Focus on technical and managerial leadership development.
Strategic Clients Deepen Strategic Relationships by building proactive solutions to enhance value delivered to clients. Deliver consistent client experience
Profitability Improve Rate Realization with focus on gross margin improvement. Leverage growth and enhance people mix across the pyramid
7/25/2023
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1 March 2021
Other Updates
Q1FY24
Reimagining Mobility with YOU
KPIT won the ET Energy Hydrogen Leadership Award
KPIT won the ET Energy Hydrogen Leadership Award - a category that recognizes an organization that has demonstrated outstanding efforts in advancing the use of Hydrogen as a clean and sustainable source.
7/25/2023
12
KPIT leaders featured on popular media outlets
KPIT Co-founder and Chairman, Mr. Ravi Pandit was invited as a distinguished speaker at the ETAuto Tech Summit 2023 held in Bangalore. His presentation centered on the Hardware and Software Technology Trends in the Mobility Industry.
KPIT Co-founder, Managing Director, and CEO, Mr. Kishor Patil spoke to Automobilwoche, one of Germany's prominent automotive industry newspapers. In this interview, he talks about the importance of KPIT's strategic partnerships, talent attraction and development, expanding footprint in Europe with Technica Engineering, partnership with ZF and more.
Mr. Ravi Pandit has contributed a series of articles on Green Energy Technology which was published regularly on ET Auto.
7/25/2023
13
Activities from #LifeAtKPIT
KPIT US office was filled with the energy of little ones as we celebrated 'Bring Your Kids to Work Day'!
We loved having our colleagues' children visit us and showed them what we work on every day.
We celebrated #MothersReimaginingMobilit y on the occassion of Mother's Day.
During this week-long campaign, we covered stories featuring mothers across KPIT offices globally in which they shared how they get to work on cutting- edge technologies and also excel beyond their life at work.
KPIT partnered with Maharshi Karve Stree Shikshan Sanstha (MKSSS) Pune, to empower women from economically weaker sections of society.
This program was started in 2021 to support families who lost their livelihoods during the COVID-19 pandemic. A total of 245 women have completed the courses. This year, a larger group of 285 women from different parts of the city have completed the training. Priya M. Hardikar, Member of the Executive Board & CFO, and Avinash Badave, AVP-Global Delivery Head-VED Practice, visited the training center and presented certificates to these women. Additionally, Avinash Badave inaugurated another tailoring training center, which will train multiple batches of women
7/25/2023
14
KPIT – Societal Development Commitment
• Water Conservation • Forest Conservation
ENVIRONMENT
EDUCATION
• KPIT SPARKLE (Engg. Innovation) • SHODH (PhD researchers) • Chotte Scientists (School Children)
Making this world a better place to live in
Developing innovative solutions for efficient energy consumption and renewable supply
KPIT SOCIETAL DEVELOPMENT COMMITMENT
Transforming lives of people through science & technology education
Utilizing employee strength to make a difference
• Alternate Energy • Renewable Energy
ENERGY
ENGAGEMENT
• Dedicated Time • Volunteer Development • COVID Warriors
KPIT is a Socially Responsible Corporate Citizen in each country it works
7/25/2023
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1 March 2021
Financial & Operational Data
Snapshot
Reimagining Mobility with YOU
Profit & Loss Account Snapshot
INR MN
DETAILS
Revenue from Operations
Other Income
Gain on account of Business Combinations
Total Income
Operating Expenses EBITDA
Depreciation
EBIT
Finance Costs
Change in FMV of Investments
Profit Before Exceptional Items
Profit/(loss) from equity accounted investee
PBT
Tax
PAT
Profit Attributable to owners of Company*
Profit Attributable to non-controlling interest
Q1FY24
Q4FY23
Q1FY23
10,976.22 78.16 134.13 11,188.51 8,837.42 2,200.12 450.44 1,749.68 137.10 2.79 1,766.34 - 1,766.34 421.95 1,344.39 1,339.98 4.41
10,173.67 62.60 - 10,236.27 8,350.16 1,942.57 422.10 1,520.47 106.57 (0.51) 1,356.93 5.10 1,362.03 246.21 1,115.82 1,116.00 (0.18)
6,857.24 152.89 - 7,010.13 5,525.51 1,331.73 310.23 1,021.50 63.43 6.12 1,117.08 3.77 1,120.85 244.26 876.59 854.28 22.31
This includes forex loss of INR 61.32 million
*In line with IND AS 103, a one-time gain of ₹ 134 M resulting from remeasuring of earlier FMS equity stake at the acquisition date FMV has been taken in Q1FY24, excluding which PAT is ₹ 1,206 M
17
Balance Sheet Snapshot
INR MN
ASSETS
Q1FY24
Q4FY23
EQUITY & LIABILITIES
Q1FY24
Q4FY23
NON-CURRENT ASSETS
Property, Plant & Equipment
2,141.45
2,143.89
Right-of-use Assets
2,849.68
2,594.34
Equity Share Capital
Other Equity
Equity attributable to owners
Non-controlling interests
2,706.02
15,333.75
18,039.77
123.19
2,703.46
13,811.92
16,515.38
117.56
Other Tangible Assets
83.16
56.43
TOTAL EQUITY
18,162.96
16,632.94
Goodwill & Other Intangibles
14,293.06
12,374.96
NON-CURRENT LIABILITIES
Other Non-Current Assets
1,308.65
1,392.58
TOTAL NON-CURRENT
20,676.0
18,562.20
CURRENT ASSETS
Inventories
863.85
587.50
Borrowings
Lease Liabilities
Other Non-Current Liabilities
TOTAL NON-CURRENT
CURRENT LIABILITIES
Cash and Cash Equivalents
5,726.93
6,287.97
Trade Receivables
6,026.95
5,924.40
Other Current Assets
3,211.16
2,643.68
TOTAL CURRENT
15,828.89
15,443.55
Borrowings
Trade Payables
Lease Liabilities
Others
TOTAL CURRENT
NIL
2,090.72
2,818.71
4,909.43
465.27
2,300.33
546.06
10,120.84
13,432.50
NIL
1,864.28
3,827.99
5,692.27
486.03
1,643.35
508.88
9,042.28
11,680.54
TOTAL ASSETS
36,504.89
34,005.75
TOTAL EQUITY AND LIABILITIES
36,504.89
34,005.75
7/25/2023
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Revenue Break-up
USD MN
Verticals*
Passenger Cars
Commercial Vehicles
Q1FY24
Q4FY23
Q1FY23
Q-o-Q
100.53
28.78
92.14
30.75
66.95
22.38
9.1%
(6.4)%
* The balance revenues come from others, which is not a big area as of now
Business Units#
Feature Development & Integration
Architecture & Middleware Consulting
Cloud Based Connected Services
Q1FY24
Q4FY23
Q1FY23
Q-o-Q
82.14
28.03
23.77
76.21
23.83
23.75
61.64
12.83
15.41
7.8%
17.6%
0.1%
#Feature Development & Integration - Electrification, AD-ADAS, Body Electronics and VED Architecture & Middleware Consulting – Middleware, AUTOSAR Cloud Based Connected Services – Intelligent Cockpit, Digital Connected Solutions and Diagnostics
Y-o-Y
50.2%
28.6%
Y-o-Y
33.3%
118.5%
54.2%
Geography
US
Europe
Asia
Q1FY24
Q4FY23
44.91
68.08
20.96
44.66
61.40
17.74
Q1FY23 34.95
35.89
19.04
Q-o-Q
0.5%
10.9%
18.1%
Y-o-Y
28.5%
89.7%
10.1%
7/25/2023
19
Q1FY24
Q4FY23
Q1FY23
Q-o-Q
Y-o-Y
P&L Metrics
Revenue by Contract Type
Time & Material Basis
Fixed Price Basis
Clients
55.0%
45.0%
54.6%
45.4%
Strategic Client Revenue
82.6%
79.5%
Active Clients (Period End)
60
60
Revenue per Devp. Employee USD
49,439
48,092
R&D Expenditure (USD MN)
EBITDA Margin
EBIT Margin
PAT Margin
Effective Tax Rate
EPS (Basic)
EPS (Diluted)
3.01
20.0%
15.9%
12.2%
23.9%
4.95
4.91
2.74
19.1%
14.9%
11.0%
18.1%
4.13
4.09
8.9%
7.4%
60.6%
37.0%
12.4%
45.0%
51.0%
49.0%
84.9%
60
41,951
2.13
19.4%
14.9%
12.5%
21.8%
3.16
3.13
7/25/2023
20
Currency wise revenues, Hedging Details
Currency wise revenue
Q1FY24
Q4FY23 Q1FY23
Hedge Rates
O/s Hedge Details
Q1FY24
USD
EUR
GBP
JPY
INR
Others
34.0%
36.3%
44.5%
42.8%
6.0%
10.5%
3.5%
1.5%
6.3%
8.8%
4.1%
1.8%
42.7%
33.5%
6.3%
8.7%
5.8%
2.9%
USD/INR
EUR/INR
GBP/INR
JPY/INR
Hedge Amounts(Mn)
USD/INR
EUR/INR
GBP/INR
JPY/INR
83.13
90.43
103.08
0.64
44.98
25.35
6.80
1,955.0
7/25/2023
21
Headcount Data Period End Headcount
Development
Enabling & Sales
Total
Q1FY24
Q4FY23
Q1FY23
Q-o-Q
Y-o-Y
10,837
734
11,571
10,297
716
11,013
8,570
613
9,183
-
-
-
-
-
-
7/25/2023
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•
1 March 2021
Contact Us
Reimagining Mobility with YOU
Conference Call Details
Conference name : KPIT Technologies Q1 FY2024 Post Earnings Conference Call Date Time Participants
: Wednesday July 26, 2023 : 1600 Hrs. : Mr. Kishor Patil, Co-founder, CEO & MD Mr. Sachin Tikekar, President, Joint MD Mrs. Priya Hardikar, CFO Mr. Sunil Phansalkar, Head-IR
Dial-in Numbers for all participants
Click here for your Diamond Pass
Primary number Local Access International Numbers : USA - 1 866 746 2133 | UK - 0 808 101 1573
: +91 22 6280 1116 : +91 22 7115 8017
Singapore - 800 101 2045 Hongkong - 800 964 448
About KPIT Technologies KPIT (BSE: 542651; NSE: KPITTECH), KPIT is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. With 11,000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables clients accelerate implementation of next generation mobility technologies. With development centers in Europe, USA, Japan, China, Thailand and India – KPIT works with leaders in mobility and is present where the ecosystem is transforming. 25
For more information, visit http://www.kpit.com
24
Contact For Investor Queries
Email Sunil.Phansalkar@kpit.com
Desk Phone + 91 20 6770 6997
Cell + 91 98509 66011
Website www.kpit.com
Sunil Phansalkar
25
Contact For Media Queries
Email Sunil.R@kpit.com
Desk Phone + 91 80 6606 6000 (7865)
Cell + 91 99001 50180
Website www.kpit.com
Sunil B R
26
THANK YOU !!
KPIT Technologies Ltd.