KPIT Tech

The fall in revenue and wage hike, both together pushed down the profits of the company. For Q1FY17, consolidated rupee revenue fell 5% (QoQ) at Rs.803 crore while it ended the quarter with a consolidated net profit of Rs.5.5 crore, down 39%. A 41% reduction in overall expenses and other income rising 83% from Rs.6 crore to Rs.11 crore, which included forex gain of Rs.7 crore is what  helped contain a further fall in net profit.  The fall in revenue was mainly on account of reduction in IT spend by some of its customers.

Automotive vertical contributed 38.6% of total revenue for the quarter, registering a Q-o-Q decline of 5.7%. Manufacturing vertical contributed 37.5% of total revenue for the quarter depicting a sequential growth of 2.2%. Utilities vertical contributed 4.4% of the total revenue for the quarter depicting a sequential decline of 11.8%. There was one large project for a utility company in SAP in US geography that ended last quarter contributing largely to the decline in Utilities vertical. Energy vertical contributed 11.7% of the total revenue for the quarter depicting a sequential decline of 15.3%.

In terms of geography, a sequential growth of 3.4% was seen in the APAC geography, whereas there was a decline of 6.47% and 2.64% in US and Europe geographies respectively.

The Cash Balance as at June 30, 2016 stood at Rs.395 crore and total debt stood at Rs.369 crore; thus the net Cash Balance as at June 30, 2016 stood at Rs.26 crore.