Birlasoft Ltd. share price target

KPIT Technologies is leading product engineering and IT consulting partner with FY15 revenues of USD 489mn. In 2QFY16 revenue share amongst verticals: automotive & transportation (37.32%), manufacturing (33.25%) & Energy & Utilities (21.26%) and others (8.17%). It operates in five main business segments: Integrated Enterprise Solutions (36.99%), Product Engineering Services (26.92%), Product and Platform (4.87%), SAP (21.94%) and Enterprise Solutions (9.27%). KPIT derives 14.18% of its revenue from Cummins, which is the largest client. The company has 10,659 employees spread across more than 10 countries to cater services to...

KPIT Tech reported major improvement in operating metrics (revenue growth was 5.3% QoQ and blended utilisation jumped 350bps). INR depreciation helped, boosting EBITDA margin 444bps QoQ despite increase in wages. KPIT believes the employee pyramid correction is done; some benefit will accrue in 3Q. Revenue growth is a focus for 2HFY16, with engineering, digital and platforms to be key drivers. While 1HFY16 saw a focus on higher utilisation, we expect 2HFY16 to see more hiring-led growth.

in FY16. 3Q flattish; 4Q should see revenue growth and margins improvement. We believehigherfresherhiringcouldimpactutilisations. 9 ToexpandfacilitiesinHinjewadi,Pune;fundingthroughnewtermloan....

KPIT posted robust operating performance with rationalization of pyramid structure and tail-accounts, resulting in the gradient of operating margin. KPIT delivering on recouping its margins is a strong and sustainable performance and we upgrade our earnings estimate following margin re-set. We are positive on KPIT based on 1) stability in Cummins account, 2) strong pipeline in SAP, and 3) improved &...

Background: Incorporated in 1999, KPIT Technologies is a leading product engineering and IT consulting partner with FY14 revenues of USD 444mn and caters to automotive & transportation (35.3%), manufacturing (15.2%) & Energy & Utilities (39.6%) companies. It operates in three main business segments: Integrated Enterprise Solutions (39.9%), Automotive & Engineering (24.8%), SAP (24.7%) and Business Transformation Unit (10.6%). KPIT derives 16.7% of its revenue from Cummins, its largest client, which also holds stake (10.6%) in the company. The company has 9,296 employees spread across 10 countries to cater services to 195...

EBITDA margins (at 9.5%) expanded 500bps qoq. However, adjusting for onetime provisionofRs300mn(forcostoverruninERPprojectslastquarter),marginsexpanded 110bps. Nevertheless, margins were higher than our expectations of 8.4% due to...

In our view, KPIT Technologies 1QFY16 performance gives reason to be positive on margins. We expect 2 levers to drive margins from 2QFY16 - revenue uptick and utilisation, the latter having 400-500 bps upside potential. We build revenue acceleration of 12.3% in FY17, and model 160 bps margin expansion in FY17E.

QoQ growth). Even in CC terms, USD revenue declined by 0.7% QoQ, implying CC impact of 250bps. INR revenues at Rs 7.6bn declined 2.2% QoQ. The miss during the quarterwaslargelyonaccountofsomechallengesinOracleERP,delayinprojectramp...

Incorporated in 1999, KPIT Technologies is a leading product engineering and IT consulting partner with FY14 revenues of USD 444mn and caters to automotive & transportation (35.3%), manufacturing (15.2%) & Energy & Utilities (39.6%) companies. It operates in three main business segments: Integrated Enterprise Solutions (39.9%), Automotive & Engineering (24.8%), SAP (24.7%) and Business Transformation Unit (10.6%). KPIT derives 16.7% of its revenue from Cummins, its largest client, which also holds stake (10.6%) in the company. The company has 9,296 employees spread across 10 countries to cater services to 195 clients, which include...

Buy at Rs 208.9) and add on dips to Rs 180 - Rs 189 for Target of Rs 240 in 1 quarter