KPIT up 3% after reporting flat PAT of Rs31cr qoq in Q1FY20

Its revenue from operations was at Rs505.7cr for Q1FY20 vs. Rs501.2cr.

Jul 29, 2019 12:07 IST India Infoline News Service

Shares of tech firm KPIT are up over 3% after the co. posted a consolidated net profit of Rs31cr for the June 2019 quarter on July 26 vs. Rs30.9cr qoq.

Its revenue from operations was at Rs505.7cr for Q1FY20 vs. Rs501.2cr.

The numbers are not comparable on year-on-year basis as last year, CK Birla Group-owned Birlasoft and KPIT Technologies announced that they will merge and then split into two publicly-traded companies to create two specialised IT players.

After the demerger, the engineering business was incorporated on January 8, 2018, and listed on the BSE and the NSE as KPIT Technologies in April 2019.

During the quarter, the company sold its existing hardware dominated business pertaining to ITS and AIS 140/VTS, to Minda Industries Ltd.

Also, during the quarter, the company paid $2.8mn (Rs19.5cr) to Birlasoft towards the settlement for Copart case.

Sparta (a 100% subsidiary of Birlasoft) paid the amount to reach an out-of-the court settlement with Copart and the pending case is now dismissed by the court.

Kishor Patil, co-founder, CEO and MD of KPIT, said the company started the new year on a positive note with industry-leading revenue growth and improved profitability. "We continue to sharpen the focus on our verticals and practices. We remain committed to growth and profitability improvement and are confident of maintaining the momentum for the remainder of the year," he added.

Birlasoft Ltd is currently trading at Rs74.90 down by Rs0.15 or 0.2% from its previous closing of Rs75.05 on the BSE.
The scrip opened at Rs76 and has touched a high and low of Rs76 and Rs74 respectively. So far 3,84,053 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,061.75cr.

Related Story