KPIT Technologies : Q2FY14 Result Review

KPIT Technologies reported its consolidated financial results for the second quarter and half year ended September 30, 2013. Total income from operations of the company rose by 23.90  %  to Rs 702.77 crore in Q2 FY14 from Rs 567.21 crore in Q2FY13 reflecting strong volume growth.  The company has reported Net Sales of Rs.1315.98 crores for the half-year ended September 30, 2013 against Rs.1105.47 crores for the half-year ended September 30, 2012.

The operating expenses increased by 25.84% on a YoY basis to Rs 609.53 crore for Q2FY14. The Company added 360 net employees during the quarter which increase the employee cost by 18.17 % to 342.99 crore in Q2 FY’14 from Rs 290.26 crore in Q2 FY’13.

Company closed two large deals in excess of USD 10 million during the quarter and have created a robust pipeline of larger deals. The EBITDA increased by 12.54 % in Q2FY14 to Rs 93.24 crore on YoY basis. Further companies EBITDA margin stood at 13.27 % at  Q2FY14 marking a decrease of 134 basis points.

Despite of the current challenging global environment where IT industry is facing multiple challenges such as pricing, reduction in IT budget of clients, cross currency volatility company reported Stable profitability on the back of higher currency realization and increased strategic investments , company has reported a growth of 42.45 % in consolidated net profits for the quarter ended September 2013 at Rs 66.74 crore, over corresponding quarter in FY13 where company had posted the net profit of Rs 46.85 crore. PAT margin stood at 9.50% in Q2FY14 against 8.26 % in Q2FY13.