New Delhi, Jul 29 (PTI) Mobility solutions provider KPIT Technologies on Wednesday reported a 31.83 per cent decline in consolidated net profit to Rs 117.17 crore for the June quarter, as global automotive headwinds weighed on its bottom line.
The company had posted a net profit (attributable to owners) of Rs 171.89 crore in the year-ago period, according to a regulatory filing.
Its revenue from operations, however, grew 8.85 per cent to Rs 1,674.99 crore in Q1 FY27 compared to Rs 1,538.76 crore in the corresponding quarter of the previous year.
Sequentially, profit and revenue fell 28 per cent and 2 per cent, respectively.
The company attributed the subdued performance to “mounting business pressures” faced by major passenger car manufacturers
across Germany, France, the UK, and Japan, which have announced cost-control measures, including job cuts and profit warnings.
The company’s bottom line was also hit by a foreign exchange loss of Rs 16.27 crore during the quarter.
Additionally, its share of loss from Qorix, a joint venture of KPIT Technologies and the ZF Group, stood at Rs 14 crore, which the company attributed to revenue postponement by European clients.
“Decline in the profitability…first is the revenue drop, specifically for European lines, as well as from Japanese clients…really contributed to our drop in profits, and it was accentuated by the foreign currency impact bit, but more from the loss of share from Qorix,” Kishor Patil, co-founder, CEO and MD, KPIT, said.
Despite the quarterly dip, the company secured new engagements with a Total Contract Value (TCV) of USD 257 million during the quarter.
The company’s EBITDA margin for the quarter stood at 17.2 per cent, impacted by revenue reduction. Management expects margins to improve successively every quarter, aided by AI-led productivity gains.
The company’s headcount at the end of Q1 FY27 stood at 12,303 against 12,520 in Q4 FY26 and 12,545 in Q1 FY26. PTI ANK ANK BAL BAL
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