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KPIT's USD revenue declined 0.5% qoq to US$122.8mn (below our estimate by 1%) in 3QFY17. Adjusted CC revenue rose by 0.65% qoq, after factoring in divestment of its functional safety business. Core volumes rose by 1% qoq, even as blended pricing declined 1% qoq. On yoy basis, blended pricing dipped by 8.8%. This is the 11th successive quarter of yoy decline in blended pricing. Pressure remains severe particularly offshore, with billing rates down 7-10% yoy in each of the last 6 quarters. This reflects the struggles that KPIT is facin g on this front, owing to the challenges faced by its top clients, IT budget cuts and subsequent demands for...

KPIT Technologies is leading product engineering and IT consulting partner with FY16 revenue of USD 487mn. In 2QFY17 revenue share amongst verticals: automotive & transportation (40.71%), manufacturing (34.79%) & Energy & Utilities (14.44%) and others (10.05%). It operates in five main business segments: Integrated Enterprise Solutions (30.58%), Product Engineering Services (33.3%), Product and Platform (4.5%), SAP (22.82%) and Digital Transformation (8.8%). KPIT derives 13.09% of its revenue from Cummins, which is the largest client. The company has 10,816 employees spread across more than 10 countries to cater services to...

ICICI Securities Ltd | Retail Equity Research KPIT reported better-than expected Q2FY17 earnings in revenue terms but below our expectations on margins and profitability front US$ revenues grew 3.1% QoQ to $123.4 million, above our 0.2% QoQ growth and $120 million estimate In rupees terms, revenues grew 3.5% QoQ to | 830.9 crore below our estimate of flat QoQ growth and | 803 crore EBITDA margins increased 30 bps QoQ to 11%, below our 90 bps...

Revenue vs. Margins We Remain Sceptical on Balancing Act' While the street appears to be enthused on healthy revenue growth of KPIT Technologies (KPIT) in 2QFY17, we are concerned about two factors i.e. revenue growth sustainability (given that SAP & IES SBUs remain growth-challenged) and margins. Challenging macroeconomic scenario, disruptive trends like SMAC and company-specific issues have left little room for KPIT to effectively address these twin issues i.e. sustainable revenue growth and sustaining margin at acceptable level. With uncertain revenue growth outlook for 3QFY17, we do not envisage any...

KPIT reported a weak set of quarterly earnings in Q1FY17 : US$ revenues declined 3.52% QoQ to $119.8 million marginally below our 4% QoQ growth and $119.2 million estimate. In rupees terms, revenues de-grew 4.5% QoQ to | 803.2 crore and was mainly in line with our estimate of 5.2% QoQ de-growth and | 797 crore .EBITDA margins declined 583 bps QoQ to 10.7%, below our 220 bps decline and 13.5% estimate mainly on account of wage hike (~250 bps impact) and currency headwind (~25 bps impact) .Reported PAT of | 55 crore was below our estimate of | 71.4 crore led by a margin miss. ICICI Securities Limited now value the stock at 10x FY18E EPS estimate of | 14.2 and lower target price to | 142 and maintain our HOLD rating.

Trendlyne has 18 reports on KPIT updated in the last year from 6 brokers with an average target of Rs 158.8. Brokers have a rating for KPIT with 2 downgrades,5 price downgrades,5 price upgrades in past 6 months and 6 price downgrades,6 price upgrades in past 1 Year.

KPIT Technologies is leading product engineering and IT consulting partner with FY16 revenue of USD 487mn. In 1QFY17 revenue share amongst verticals: automotive & transportation (38.59%), manufacturing (37.49%) & Energy & Utilities (16.12%) and others (7.81%). It operates in five main business segments: Integrated Enterprise Solutions (35.83%), Product Engineering Services (29.36%), Product and Platform (2.17%), SAP (24.02%) and Digital Transformation (8.62%). KPIT derives 12.8% of its revenue from Cummins, which is the largest client. The company has 10,450 employees spread across more than 10 countries to cater...

KPITs performance in 1QFY17, following its business warning earlier, reconfirms growth volatility and a skewed business profile. A massive decline in the energy vertical (11.7% of revenue) as well as continued pressure in the top account (Cummins) impacted IES and PES SBUs. This contributed 45% to the 1Q decline and worries us.

Revenue declined 3.5% qoq in USD marginally better than our estimates (-4.2% qoq). Verticals: Manufacturing grew 3.3% qoq. E&U; and Auto declined -13.5% and -4.8% qoq. Geographies: ROW grew 4.4% qoq; America and Europe declined -5.5% and -1.6% qoq. Services: SAP grew 3.0% qoq (after 12.5% decline in last quarter). Enterprise Solutions grew 1.8% qoq. Engineering Services and IES declined by 5.6%/2.6% qoq. EBITDA margins contracted 507bps to 10.7% marginally lower than our expectation of 11%. The margins were impacted by salary hike (-250bps). Net profit at Rs 551mn, was down 41.2% qoq marginally higher than our expectation...

In line with our estimate, KPIT's revenue declined 3.5% qoq to US$119.8mn. While volume remained flat sequentially, blended pricing saw 3.1% qoq decline. On a yoy basis, blended pricing dipped 2% marking the 9th successive quarter of yoy decline. Delivery-wise, this is the 9th successive quarter of yoy pricing decline offshore and 11th successive quarter onsite. Pressure is severe particularly offshore, with billing rates down 8-10% yoy in each of the past 4 quarters clearly reflecting the struggles that KPIT is facing on this front, owing to challenges being faced by its top clients, IT...

Revenue decline led by multiple factors: KPIT's 1QFY17 revenue of USD120m (-3.5% QoQ) came in line with our estimate, post management's guidance of a weak quarter. The revenue decline was led by aggravated weakness at its top client (-12% QoQ), pressure in Product Engineering and Energy verticals, and ERP implementation. The revenue decline, along with wage hikes and investments, resulted in a margin decline of 550bp QoQ to 10.7%. Growth recovery not imminent: Revenue growth recovery in FY17 appears difficult, especially with the Product Engineering business under pressure....