Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

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Yellowstone Equity

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Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

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Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kpit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:35189:1" rel="noopener">KPIT Technologies ("KPIT")</a> reported $280mm worth of deal wins in Q4Y25, well beyond the typical run-rate of $150mm+, despite the tough demand environment, which demonstrates KPIT's strong competitive positioning.</li>
<li>KPIT's Q4FY25 PAT excluding one-time income grew 18%+ YoY in INR and 15% YoY in constant currency (CC) terms. Revenue growth was 15% YoY and 3% QoQ in CC terms.</li>
<li>Margins continued to be strong with Q4FY25 EBITDA margin at 21.1%. With this, the full-year FY25 EBITDA margin ended at 21%, in line with the upgraded guidance.</li>
</ul>



KPIT Technologies ("KPIT") reported $280mm worth of deal wins in Q4Y25, well beyond the typical run-rate of $150mm+, despite the tough demand environment, which demonstrates KPIT's strong competitive positioning.
KPIT's Q4FY25 PAT excluding one-time income grew 18%+ YoY in INR and 15% YoY in constant currency (CC) terms. Revenue growth was 15% YoY and 3% QoQ in CC terms.
Margins continued to be strong with Q4FY25 EBITDA margin at 21.1%. With this, the full-year FY25 EBITDA margin ended at 21%, in line with the upgraded guidance.


KPIT Tech: Strong Deal Wins Despite Tough Environment Attests Strong Competitive Positioning

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kpit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:35189:1" rel="noopener">KPIT Technologies ("KPIT")</a> reported decent growth despite challenging macroeconomic environment in the automotive OEM segment. Q3FY25 revenue grew 17.4% YoY and 2.0% QoQ in constant currency (CC) terms.</li>
<li>Led by improved efficiency and revenue mix, EBITDA margin came in stronger than expected at 21.1%. This led KPIT to raise its FY25 EBITDA guidance to 21%+ from 20.5%+.</li>
<li>Deal engagement has been strong. TCV came in at $236mm vs typical run-rate of $150mm+. Deal pipeline is also healthy and the management is expecting substantial closures by H1FY26.</li>
</ul>



KPIT Technologies ("KPIT") reported decent growth despite challenging macroeconomic environment in the automotive OEM segment. Q3FY25 revenue grew 17.4% YoY and 2.0% QoQ in constant currency (CC) terms.
Led by improved efficiency and revenue mix, EBITDA margin came in stronger than expected at 21.1%. This led KPIT to raise its FY25 EBITDA guidance to 21%+ from 20.5%+.
Deal engagement has been strong. TCV came in at $236mm vs typical run-rate of $150mm+. Deal pipeline is also healthy and the management is expecting substantial closures by H1FY26.


KPIT Tech: Strong Q3Y25 Despite Challenging Environment

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Robust Growth Across Verticals: The management has highlighted robust and broad-based growth across various verticals, supported by a solid deal pipeline and enhanced client engagement.</li><li>Europe led growth, followed by the US and Asia, with strong traction in Powertrain, Connected Vehicles, and SDVs (SoftwareDefined Vehicles).</li><li>Total Contract Value (TCV) Performance: Total Contract Value (TCV) for Q3FY25 stood at $236 Mn, with significant contributions from Europe and the US, reflecting higher deal conversion rates and increased client confidence in KPIT’s capabilities.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Robust Growth Across Verticals: The management has highlighted robust and broad-based growth across various verticals, supported by a solid deal pipeline and enhanced client engagement.Europe led growth, followed by the US and Asia, with strong traction in Powertrain, Connected Vehicles, and SDVs (SoftwareDefined Vehicles).Total Contract Value (TCV) Performance: Total Contract Value (TCV) for Q3FY25 stood at $236 Mn, with significant contributions from Europe and the US, reflecting higher deal conversion rates and increased client confidence in KPIT’s capabilities.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

KPIT Technologies Ltd - Resilient Performance in Action

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kpit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:35189:1" rel="noopener">KPIT Technologies ("KPIT")</a> reported a decent Q2FY25 with revenue growth of 20.1% YoY in constant currency (CC) terms. Growth came largely from Asia - Japan, Korea and India.</li>
<li>EBITDA margin has been steady at 20.5%+ and grew 27.7% YoY. This is despite the salary increments and one-time ESOP costs, which impacted the margin adversely by about 270bp.</li>
<li>KPIT has guided that FY25 revenue growth could be at the lower end of the guidance, however, profit margin is projected to be on the higher side led by offshoring.</li>
</ul>



KPIT Technologies ("KPIT") reported a decent Q2FY25 with revenue growth of 20.1% YoY in constant currency (CC) terms. Growth came largely from Asia - Japan, Korea and India.
EBITDA margin has been steady at 20.5%+ and grew 27.7% YoY. This is despite the salary increments and one-time ESOP costs, which impacted the margin adversely by about 270bp.
KPIT has guided that FY25 revenue growth could be at the lower end of the guidance, however, profit margin is projected to be on the higher side led by offshoring.


KPIT Tech: Steady Q2FY25 Although Near-Term Outlook Is Uncertain

<ul>
<li>KPIT raised its full-year FY24 revenue growth guidance to 37%+ from 27-30% earlier, led by a strong Q2FY24 performance. EBITDA margin guidance has been also raised to 20%+ from 19-20%.</li>
<li>Despite wage hike impact of 250bp, EBITDA margin came in at 20%, at the upper end of the 19-20% FY24 guidance. Operating leverage and realization improvement helped offset the impact.</li>
<li>With the strong Q2 performance, we are upgrading our FY24 PAT estimate to INR 580cr+ vs INR 550cr+ earlier and FY25 PAT of INR 730cr+ vs INR 700cr+ earlier.</li>
</ul>


KPIT raised its full-year FY24 revenue growth guidance to 37%+ from 27-30% earlier, led by a strong Q2FY24 performance. EBITDA margin guidance has been also raised to 20%+ from 19-20%.
Despite wage hike impact of 250bp, EBITDA margin came in at 20%, at the upper end of the 19-20% FY24 guidance. Operating leverage and realization improvement helped offset the impact.
With the strong Q2 performance, we are upgrading our FY24 PAT estimate to INR 580cr+ vs INR 550cr+ earlier and FY25 PAT of INR 730cr+ vs INR 700cr+ earlier.


India

KPIT Technologies Limited operates as a technology company. The Company specializes in embedded software, artificial intelligence, and digital solutions. KPIT Technologies serves automobile industry worldwide.

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KPIT Technologies (KPITTECH IN)

KPIT Tech: Strong Deal Wins Despite Tough Environment Attests Strong Competitive Positioning

KPIT reported strong deal wins despite tough demand environment, thus attesting its strong competitive positioning. At the current valuation, an...

Ankit Agrawal, CFA

KPIT Tech: Strong Q3Y25 Despite Challenging Environment

KPIT reported strong growth and an upbeat demand outlook despite challenging macroeconomic environment in the automotive sector. At the current...

Ankit Agrawal, CFA

KPIT Technologies Ltd - Resilient Performance in Action

The management has highlighted robust and broad-based growth across various verticals, supported by a solid deal pipeline and enhanced client...

Axis Direct

KPIT Tech: Steady Q2FY25 Although Near-Term Outlook Is Uncertain

KPIT reported a steady Q2. With European OEMs struggling, the near-term outlook is uncertain. However, this appears temporary and in due course, it...

Ankit Agrawal, CFA

KPIT: Raises Its Full-Year FY24 Guidance

Post the strong Q2FY24 performance, KPIT has upgraded its FY24 revenue growth guidance to 37%+ YoY vs 27-30% earlier. EBITDA margin guidance has...

Ankit Agrawal, CFA

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