KPIT Tech shares surge 10% on interim dividend announcement and EBITDA margin revision

Shares of KPIT Technologies surged 10% to hit the upper circuit at an intraday high of ₹1,385 on the NSE today, driven by its Q3 results, revised EBITDA margins, and interim dividend announcement.

Consolidated net profit of the company grew 19.28% to ₹186.97 crore in the third quarter this fiscal, from ₹156.75 crore in the year-ago quarter but was 8.23% lower than the ₹203.75 crore reported in the second quarter. Alongside its Q3 FY25 results, the company’s board approved an interim dividend of ₹2.50 per share (25% of the ₹10 face value) for FY25, with the record date set for February 4.

The shares opened at ₹1263, and touched a 52-week low of ₹1223.25, down 3% from previous day’s close of ₹1,259.10. The company’s total market capitalisation stood at ₹37,856.52.

Revenue from operations rose to ₹1,477.96 crore, up 17.58% from ₹1,256.94 crore. Total income increased by 17.38% to ₹1,497.43 crore in the third quarter this fiscal, from ₹1,275.75 crore. Total expenses climbed to ₹1,234.50 crore, rising 16.01% from ₹1,064.17 crore in the year-ago quarter.

The company closed over $236M worth engagements in the October-December quarter

EBITDA stood at ₹312.21 crore, up 20.78% from ₹258.51 crore in the same quarter last year. EBITDA margins improved to 21.1% in the third quarter from 20.8% in the previous quarter, driven by productivity gains, revenue mix, and fixed cost leverage.

“The operating profit has improved due to revenue mix change and productivity improvement, despite currency headwinds. Thus, we increased our annual EBITDA Margin outlook to 21%+ from 20.5%+ earlier,” Kishor Patil, co-founder, CEO and MD, KPIT said in a statement.

“We are investing in AI technologies fined tuned with automotive-specific data,” Patil added.

Segment-wise, the rest of the world reported the highest revenue growth, rising 30.01% to ₹774.69 crore from ₹595.87 crore. The UK and Europe segment grew 7.44% to ₹734.11 crore from ₹683.25 crore.

Across verticals, passenger car revenue increased 23% year-on-year to $143.86 million from $116.85 million. The Asia region saw an 80.5% jump in revenue to $46.52 million from $25.77 million in the year-ago quarter.

The company also announced appointment of Ramesh Raskar and Nishant Batra as additional and independent directors of the company.