Birlasoft Ltd. share price target

KPIT's Q3FY16 performance was disappointing on revenue front. Revenue at US$123.3mn was down 1.0% QoQ, -2.5% YoY was below our estimates. Revenue miss was due to higher furloughs in Automotive and decline in couple of customers in Energy vertical.

KPIT Technologies is leading product engineering and IT consulting partner with FY15 revenues of USD 489mn. In 3QFY16 revenue share amongst verticals: automotive & transportation (35.97%), manufacturing (36.61%) & Energy & Utilities (20.17%) and others (7.26%). It operates in five main business segments: Integrated Enterprise Solutions (34.04%), Product Engineering Services (26.35%), Product and Platform (3.81%), SAP (25.9%) and Enterprise Solutions (9.9%). KPIT derives 14.06% of its revenue from Cummins, which is the largest client. The company has 10,559 employees spread across more than 10 countries to cater services to...

Muted revenue on lower IES & product business KPIT's revenue fell short of estimates impacted by decline in IES and product business while operating performance was better on pyramid rationalization. While automotive vertical is expected to rebound, energy division (~10% of revenue) is expected to be muted ahead. Management indicated to lower growth for the next three quarters and acceleration from 2HFY17E even as it expects margins to be sustainable at current levels. We expect US$ revenue/EPS to grow at 7%/12% over FY15-18E with EBITDA% factored at 13.2%/12.9%/13.9% for FY16E/17E/18E, respectively; maintain HOLD...

KPIT reported a subdued 3QFY16, with revenue down 1% QoQ (US$ 123.3mn vs. our estimate of US$ 125.9mn) owing to furloughs and issues with two energy clients. A positive sign was the 57bps QoQ EBITDA margin expansion, led by INR depreciation and the employee pyramid.

KPIT, a key IT service provider in manufacturing domain particularly in Automotive is all geared up for next leg of growth. Company is one of a kind in delivering auto electronic services, semiconductor solutions while other service offerings include Enterprise IT. Improving demand environment in Automotive & Manufacturing coupled with traction in SAP provides ample growth opportunities.

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...