Profit before tax shed 2.28% quarter on quarter (QoQ) while soared 40.10% YoY to Rs 136.20 crore in the quarter ended 31 March 2023.

EBITDA stood at Rs 194.26 crore in Q4 FY23, registering a growth of 14.36% QoQ and 60.02% YoY. EBITDA margin improved to 19.1% in Q4 FY23 as against 18.5% in Q3 FY23 and 18.6% posted in Q4 FY22.

The IT company said that the margin expansion was led by revenue growth and operational efficiencies. Impact of purchase price allocation relating to technical acquisition reflected in depreciation. Deemed interest on payments related to deferred payouts is reflected in finance costs.

During the quarter, constant currency (CC) revenue growth was at 42.1% YoY and 8.5% QoQ. In dollar terms, revenue growth was 42% YoY and 17.3% QoQ.

Total contract value (TCV) of total deals won during the quarter was $272 million.

The firm's net profit jumped 38.93% to Rs 380.99 crore on 38.34% increase in revenues to Rs 3,365.04 crore in the year ended March 2023 over the year ended March 2022. EBITDA grew 44.9% to Rs 635.46 crore during the year.

With respect to outlook for FY24, KPIT Technologies said that CC revenue growth is expected in the range of 27% to 30% and EBITDA margin to be in the range of 19% to 20%.

Kishor Patil, co-founder, CEO and MD of KPIT said, “We have consistently delivered eleven sequential quarters of healthy growth in revenues and operating profits. On the back of a solid quarter and year performance and basis recent mega engagements and committed spend on software by our Strategic Clients, we are witnessing robust demand and increased visibility for the next 3-4 years. We start FY24 on a strong footing and expect to deliver CC revenue growth of 27%-30% with EBITDA margins between 19%-20%.”

Sachin Tikekar, co-founder and joint MD at KPIT said, “We start FY24 on the back of closure of key strategic, long-term engagements with Q4 wins TCV of $ 423 million. We will focus on alignment and collaboration of practices to address larger problems of our clients through broader technology solutions. We are committed to building scale through robust competency framework, flawless execution and on-boarding the right talent with higher competency. We will channelize our investments towards creating trusted partnerships with our clients to effect greater value creation, in the coming years”.

Meanwhile, the company's board has recommended a final dividend of Rs 2.65 per share for the financial year 2022-23.

KPIT Technologies is a technological company focused on automobile engineering and mobility solutions. The company offers technology solutions to automobile OEMs under different practices such as power trains (conventional and electrical), connectivity, autonomous (vision and control systems) and diagnostics. Each of its practice areas offer software IP, software integration, feature development, and verification and validation services.