Conference Call with KPIT Tech Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook.  Listen to the full earnings transcript. 

Highlights from Mr. Ravi Pandit, Chairman of KPIT Technologies

First complete full year as an automative solutions focused company. Revenue growth of over 14% - industry leading growth. EBITDA growth was 35% Margin increased from 11.5% to 13%. EBITDA growth of Q4 over Q3 was 2%. While there was negative YoY growth for PAT, QoQ growth was positive. 

Growth in top 20 customers YoY was 20%. Emphasis on key customers has given results. Attrition has also come down from 25% last year to about 15%. Higher profitability has converted into higher cash. Ended FY20 with Rs 328 crore cash baalnce.

Power train and autonomous are the drivers of growth and contributed to 60% of revenues. Our goal is to maximize wallet share from customers, by maintaining quality and speed in catering to our customers. 

Our focus is also to conserve cash, and improve liquidity further. We expect Q1 to see a 15% drop in revenues, on the basis of how customers have responded to the pandemic. Salary impact will be adjusted downward since a portion of salaries is variable, and we have also increased the variable component in salaries. 

We are cautious about FY21 owing to uncertainty due to the current disruption and possibility of a relapse of the pandemic globally. Hence, we refrain from giving any outlook for FY21 at this juncture, but we expect H2 to be better than H1. We are seeing some good big deals, so overall we are pretty optimistic about the future. We expect the current disruption in the automotive industry to create new opportunities in the medium term. H1FY21 revenues will be impacted and significant effect will be in Q1FY21. New deal wins benefit will be seen from H2FY21.

We believe the automotive industry and mobility in the broader sense will continue to grow, with potentially more demand in self-driven and fully autonomous cars. We have invested in these technologies and will continue to do so. Our focus on fewer but high quality services should deliver good yields in the years to come.