Healthy Growth in Revenue, But Margin Pressure Impedes Earnings KPIT Technologies (KPIT) has reported a healthy 4.8% QoQ growth in USD revenue to US$134.4mn in 1QFY18. However, adjusting for one-time technology licence revenue of US$2mn, adjusted revenue rose by 3.2% QoQ (1.9% QoQ in CC terms). EBITDA margin declined by 101bps QoQ, which was largely in-line with our estimate. INR appreciation was the key margin headwind in the quarter. Looking forward to 2QFY18E, KPIT will award wage hikes, which will have a 225-250bps impact on margins. The company is looking to drive utilisation, productivity and cost efficiency to offset these headwinds....