KPIT's Q2 Profit Up 5.8% at Rs 70.6 Crore

Software services firm KPIT Technologies today reported 5.8 per cent growth in net profit at Rs 70.6 crore for the second quarter ended September 30, 2014-15, helped by revival in spending in the automotive and manufacturing sectors.
     
The Pune-headquartered firm had posted consolidated net profit of Rs 66.7 crore in the July-September period of 2013-14, it said in a statement.
     
Its Q2, 2014-15, net sales rose 7.8 per cent to Rs 757.4 crore, as against Rs 702.7 crore in the year-ago period.
     
KPIT chairman and group CEO Ravi Pandit said: "Spending has returned well in the automotive and manufacturing industries and through our timely investments in key technologies and in developing right products for these industries, we continue to be the most preferred partners for our customers."
     
Asia continues to be the leader with good growth in North America as well during the quarter, he added.
     
KPIT Managing Director and CEO Kishor Patil said: "We strengthened our pipeline further during the quarter and believe that the growth momentum will continue in H2, though Q3 will be a seasonally weak quarter."
     
Mr Patil added the firm expects to clock revenues of over $500 million for the full year, though profitability in H1 has been lower than expected.
     
"The organisational changes and addition of senior executives that we did over the last 4-5 quarters, has started delivering results," he said.
     
Cash balance as on September 30, 2014 stood at Rs 436.34 crore. Capital expenditure for the quarter stood at Rs 25.23 crore including CWIP.
     
As on September 30, 2014, KPIT's total debt was Rs 533.14 crore comprising of Rs 217.55 crore of term loan, Rs 315.58 crore of working capital loan.
     
Its total employees at the end of the second quarter was 9,933.