KPIT Cummins first half net profit grows 61 per cent
Product engineering and IT consulting company KPIT Cummins has clocked revenues of Rs 567.2 crores for the quarter ended September 30, 2012.
The company provides product engineering and IT consulting services to automotive & transportation, manufacturing and energy & utilities companies. Its net profit for the quarter reached Rs 46.12 crore, a rise of 26%, while EBITDA margin for the quarter improved to 16.6% from 13.6%, during the same period. Net profit in the first half of this financial year at Rs 97 crore has grown by 61% over the first half of the last financial year.
Cummins, the JV partner in the company, is its largest customer, contributing 19.70% to the revenues in the quarter ended on 30 September 2012. It added four new customers this quarter, taking its total number of customers to 176. It now has 69 customers contributing over USD 1 million business each, up from 51 in the first quarter of last fiscal. The company is looking at reaching revenues of USD 1 billion by 2017.
Business from its top ten customers, including Cummins, grew more than 50% for the same period. The company is slowly achieving equal dispersed spread of business across its major clients. While business from its top ten and its largest customer Cummins has grown in absolute terms, its contribution as a percentage of total business has dropped.
Ravi Pandit, Chairman & Group CEO, KPIT Cummins said, “We are happy with the revenue performance that we have delivered this quarter with an EBITDA margin that has improved in line with our projections. During this quarter we saw significant growth coming from the APAC region and we expect the geography to continue a healthy growth through H2.” He added, “The global economic uncertainties have continued, resulting in delayed business decision making. However we believe our sharp focus and investments in select verticals should keep us in good stead to achieve our annual guidance.”
The company says it is on track to a successful launch of vehicle trials of Revolo, India's home-grown hybrid solution for vehicles, by the end of this financial year. Revolo, jointly developed by KPIT Cummins and Bharat Forge, is as a parallel hybrid solution to fit into existing cars running on petrol, diesel or CNG. It provides electric power as a supplement at critical times, to reduce overall fuel consumption. It is the first attempt of KPIT Cummins to come up with a physical product and the company expects it to contribute significantly to its business as the auto world slowly shifts towards hybrid electric cars amid rising pollution and increasing fuel prices.
Kishor Patil, Managing Director & Chief Executive Officer, KPIT Cummins said, said, “On the back of a good H1 performance and a strong pipeline we maintain our annual guidance, however we believe that lesser number of working days in Q3 FY2013 might impact revenue performance in Q3.”