KPIT Technologies, a frontrunner in delivering innovative mobility solutions, has revealed its financial performance for the third quarter of fiscal year 2025, showcasing a commitment to a cleaner, smarter, and safer future.
Financial Insights
For Q3 FY25, KPIT’s revenues hit an impressive $176 million, marking a solid year-over-year constant currency growth of 17.4%.
Overall, this translates to an 18.1% increase in total revenue.
So far this fiscal year, the company has achieved a remarkable 20.7% year-over-year constant currency revenue growth.
This success is largely attributed to advancements in the Powertrain and Connected Vehicles segments, bolstered by significant contributions from Asia and the Passenger Car division.
The company’s EBITDA for this quarter stands at an impressive 21.1%, reflecting a year-over-year increase of 20.8%.
Furthermore, the Profit After Tax (PAT) reached INR 1,870 million, representing a substantial growth of 20.4% compared to the previous year.
- During Q3 FY25, KPIT won new contracts amounting to $236 million.
- The company has raised its EBITDA margin forecast for fiscal year 2025 to exceed 21%, up from its earlier target of 20.5%.
- KPIT continues to project consistent revenue growth between 18% and 22%.
Leadership Reflections on Q3 Performance
Kishor Patil, Co-founder, CEO, and Managing Director of KPIT, stated that the company remains on track with its annual revenue goals.
He pointed out that the increase in operating profit comes from a healthy revenue mix and improved productivity, even while navigating challenges involving currency volatility.
He emphasized KPIT’s dedication to investing in automotive-specific artificial intelligence technologies, aiming to develop innovative, user-friendly solutions that provide added value for clients.
He expressed optimism about leveraging these AI advancements to expand the company’s talent pool and seize new growth avenues.
Patil also noted the strengthening relationships with key clients, as evidenced by increased contract closures, robust cash flow, and a solid project pipeline.
In addition, Sachin Tikekar, President and Joint Managing Director, highlighted ongoing developments in new sub-segments such as Trucks and Off-highway.
He pointed out the substantial growth opportunities these initiatives present, which are already starting to enrich KPIT’s global pipeline.
The company is actively forging new partnerships with both passenger car and truck manufacturers in regions including China and various parts of Europe beyond Germany.
Tikekar observed a rising interest from major clients in services that focus on vehicle cost efficiency, cybersecurity, and data analytics.
He also shared that the workforce attrition rates are at all-time lows, while leadership development initiatives continue to thrive, further positioning KPIT for sustainable growth.
Future Outlook
With these promising trends, KPIT Technologies is not merely adapting to market challenges; it is actively charting a course toward future success.