Pune-based KPIT Technologies, which is an independent software integration solutions provider for automotive and mobility industry has announced its Q1 (April to June 2023) FY24 financial results, with the company registering a noticeable 51.7 percent year-on-year (YoY) growth as its revenues touched US $133.9 million or Rs 1,095 crore.

The company has also reported almost 57 percent YoY growth in its profit-after-tax (PAT) and maintains a robust outlook for FY24. KPIT Technologies has attributed the strong growth to strategic accounts, middleware and architecture, electric powertrains, and connected vehicles.

KPIT Technologies plans to close the year, targeting growth in the range of 27 to 30 percent, with an EBITDA margin in the range of 19-20 percent by end-March 2024. In Q1 FY24, the company’s EBITDA margin expansion of 90 basis points was led by growth resulting in fixed costs leverage and operational efficiencies.

According to Kishor Patil, Co-founder, CEO, and MD, KPIT Technologies, “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 personalisation. 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".

While its global headcount crossed 11,500 in the last quarter, the company is laying strong focus to improve quality of the incoming talent by focusing on technical and managerial leadership. “With respect to our competition, we are ahead in terms of many things, including thought leadership and scale. We are far bigger in terms of scale, and are multiple times ahead of existing players. Our focus is clearly on software and architecture, and not on mechanical areas. We are strategically engaged in these programmes,” Patil told journalists at a post-earnings media call.

Although it continues to invest in the US, and European markets, KPIT Technologies will accelerate its investments in Asian countries, including India in the ongoing financial year. The company is also focusing on organic growth but says if there is something outstanding, it could consider potential M&A opportunities to grow inorganically.

Patil mentioned that at an organisational level, KPIT Technologies is dabbling into generative AI, and it is looking at several internal systems, and areas such as content management, and training at the client site, and is investing largely in tools where it foresees generative AI-making a difference in analytics and tools.

With respect to transitioning into an end-to-end systems supplier, Patil said, “OEMs continue to be our main clients, and we help them by complementing their strategies and accelerating them. Earlier Tier-1 suppliers used to supply software, but now OEMs want to own the software, and alongside that, there are semiconductor and Cloud companies. We have established ourselves in a unique position, and chosen to focus on software.”

“The ecosystem play has increased several notches, and with our several collaborations, we will continue to integrate services and offer solutions to OEMs,” Patil concluded.