KPIT registers 10%+ growth in $ revenue for FY15 over FY14, PAT declines by 4.8%
Pune, India, April 28, 2015: KPIT, a vertical focused IT consulting and product engineering solutions and services provider to automotive & transportation, manufacturing and energy & utilities corporations, today reported its consolidated financial results for the fourth quarter and full year ended March 31, 2015.
Highlights for the quarter ended March 31, 2015
- Revenue at $ 122 Million, a Y-o-Y growth of 7.7%.
- Revenue grew by 9% Y-o-Y to Rs. 7,630 Million.
- Profit After Tax declined by 18% Y-o-Y to Rs. 503 Million.
Highlights for the full year ended March 31, 2015
- Revenue grew by 11% Y-o-Y to Rs. 29,899 Million.
- Revenue at $ 489 Million, a Y-o-Y growth of 10%
- Profit After Tax stood at Rs. 2,370 Million, a Y-o-Y decline of 4.8%.
- Good traction in Products & Platforms, Intelligent Transportation System (ITS) achieved $18.5 Million revenues in the first year of operation.
Management comments
Commenting on the performance of Q4 FY15 and FY15, Ravi Pandit, Co-founder, Chairman & Group CEO, KPIT said, “As we look back, it has been a mixed year, with Engineering and Products & Platforms, especially Intelligent Transportation System (ITS) being the positives and overall ERP business witnessing challenges. We will focus strongly on operational excellence and invest in the right growth areas, especially Products, Consultative front-end, Engineering and Digital Transformation, to capture the market potential in these and get back to growth in the coming quarters.”
Kishor Patil, Co-founder, CEO & MD, KPIT said,” While we have invested in senior people, the changed market conditions have not allowed us to leverage the investments fully. We have scrutinized our performance in great depth and have an action plan defined, to be executed over the next 2 quarters. We will invest in fresh graduates and people training to correct the pyramid and resultant people cost. We believe we will be on the right track midway through FY16 and as we exit FY16, we will be on a sound footing, ready to run faster.”
Corporate Update
FY15 was a crucial year for us as it was the first full year post our organizational restructuring and formation of new business units. We created customer focused Industrial Business Units (IBU) and staffed them with senior front end people. The purpose being, to ensure full range of our services are made available to our set of customers through unified Account Management Process. With a modest start to the year, we continuously focused on strengthening our sales, execution and operations across the organization. Continuing with our dedicated efforts towards innovation and focused investments in R&D and IP development, we achieved success with our Intelligent Transportation System (ITS) product, which is the first On-Bus ITS product in India to be certified by ARAI for JNNURM II specifications. It contributed significantly to the revenues for the year. However macro-economic circumstances like significant cross currency movements and turmoil in the Energy vertical due to lower oil prices, coupled with periodical revenue fluctuations in a few top customers and the overall sluggishness in the ERP area, impacted us negatively. We will discuss in detail the quarter and the year performance in the ensuing paras.
Our revenue guidance for the year was $ 498 Million to $ 506 Million and we closed the year with $ 489 Million. The overall impact of cross currency fluctuations was around $ 6 Million. Our initial PAT guidance for the year was Rs. 2,940 Million to Rs. 3,005 Million, which was revised lower by 10% during the year. We closed the year with PAT of Rs. 2,370 Million.
