KPIT Technologies' Q1FY17 consolidated net profit declines 41% qoq to Rs.55.05 crore

India Infoline News Service | Mumbai | July 20, 2016 17:01 IST

The company’s consolidated revenue stood at Rs. 803.23 crore, down 4.49% qoq but up 5.78% yoy.

KPIT Technologies Ltd, engineering services and solutions provider, reported consolidated net profit of Rs.55.05 crore for the quarter ended June 30, 2017, registering decline of 41.24% qoq, but growth of 30.11% yoy. The company’s revenue stood at Rs. 803.23 crore, declining 4.49% qoq but grew by 5.78% yoy.
It's consolidated operating profit of Rs. 85.60 crore for the quarter, declined 35.27% qoq but grew 20.36% yoy. Operating profit margin for the current quarter at 10.66% contracted by 507 bps qoq but expanded by 129 bps yoy.

KPIT Tech Q1FY17: Earnings Decline; traditional revenue segments impacted:

KPIT posted a decline 4.03% due to fall of ~5% in revenues from USA , further operating income was due to 5.8% qoq rise in employee cost and a ~2x qoq and  9.70% yoy increase in finance costs. However other income rose 80% qoq and 16.76% yoy reducing the impact of increased operating expenses. The bottom line was impacted due to the 34.5% qoq escalation in tax expenses.

The company said its revenues may drop around 4% with a consequent drop in profitability after its traditional revenues from its ERP (enterprise resource planning) implementation segment got affected more than anticipated, as the company is going through internal changes in structure and external changes in the business environment.
Consolidated EPS for the quarter stood at Rs. 2.87.

Stock Commentary:

KPIT Technologies Ltd ended at Rs. 132.75, down by 1.7 points or 1.26% from its previous closing of Rs. 134.45 on the BSE.

The scrip opened at Rs. 130.6 and touched a high and low of Rs. 136.5 and Rs. 130.6 respectively. A total of 3291825(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 2655.37 crore.

The BSE group 'A' stock of face value Rs. 2 touched a 52 week high of Rs. 196.6 on 21-Jun-2016 and a 52 week low of Rs. 98 on 07-Sep-2015. Last one week high and low of the scrip stood at Rs. 151.65 and Rs. 133.8 respectively.

The promoters holding in the company stood at 16.82 % while Institutions and Non-Institutions held 51.61 % and 26.67 % respectively.

The stock traded above its 50 DMA.

***Note: This is a NSE Chart



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