KPIT Cummins Net profit grows 73% in Q1, FY 2010

EBITDA increases by 33% Y-o-Y to reach INR 366.15 Mn.

Pune: KPIT Cummins (BSE: 532400; NSE: KPIT) today announced its results for Q1 ending June 30, 2009. It's net Profit grew by 73% Y-o-Y and 16% Q-o-Q to INR 223.78 Mn and EBITDA grew by 33% Y-o-Y basis to INR 366.15 Mn.

The company's profit Margins improved on a Y-o-Y basis; Gross Profit Margin 42.98% (up by 3.5%); EBITDA Margin 21.19% (up by 5.5%) and PAT Margin 12.95% (up by 5.6%). It's EPS increased to INR 2.86 from INR 2.47 in Q4 FY2009, a growth of 16%. On Y-o-Y basis it grew by 73%.

Commenting on the Company’s Q1 FY10 performance, Ravi Pandit, Chairman & Group CEO said, “Our focus on operational excellence continues to yield results for us. In this quarter, we have demonstrated excellent growth in profits. In the coming quarters, we will continue our thrust on operational excellence, innovation and customer centricity to accelerate our growth.”

“In this quarter, we have witnessed increased relevance of our products and services to our customers. Our focused business model continues to give us leadership position in our markets and this is reflected in targeted customer-wins we had from Europe and Asia Pacific. We are also assessing adjacent markets in manufacturing where we could leverage our core competencies,” said Kishor Patil, MD & CEO, KPIT Cummins.

In USD terms, the company recorded total revenue of 35.36 Mn. In INR terms revenues remained more or less flat (-1.8% Y-o-Y) at 1728.07 Mn.

KPIT Cummins added 5 customers during the quarter taking the total number of customers to 133.

Sector specific Highlights

Automotive

Ranked among top 5 companies by industry focus: Automotive, by International Association of Outsourcing Professionals (April, 2009)

- Strengthened AUTOSAR leadership: won Validator 4 project from AUTOSAR consortium. A leading Japanese Tier 1 has sourced it's AUTOSAR R3.0 BSW evaluation license for its applications.

- Commenced a strategic engineering engagement with a leading European Automotive OEM.

- Two leading European Tier 1s have selected the KPIT Cummins Network Operating System product for their automotive sub-systems.

- Became core members of the GENIVI Alliance, this shall help the company create and offer unique and differentiated In-Vehicle Infotainment (IVI) products and services that will facilitate reusability, thus reducing time to market.

Industrial Equipments

One of our long-standing European customers awarded the company the IT award for year 2009, for successful implementation of Six Sigma initiatives in the areas of Database design, performance tuning and reporting.

- In the Business IT space the company won engagements in Manufacturing ERP, CRM and product lifecycle management from a leading American transportation equipment provider, Indian industrial equipment manufacturer, Indian Steel manufacturer and a leading European manufacturer of energy efficiency products.

- Chosen as the Global SAP roll-out implementation partner by a leading American Industrial Machinery manufacturer.

Hi-Tech & Semiconductor

- Commenced design engineering engagement with 2 leading European Semiconductor companies.

- Clinched multi-year Enterprise Support deal with a global enterprise middleware leader further strengthening the company's leadership in providing high end 24/7 enterprise software support to global software corporations.

Diversified Financial Services

- Started engagement in the DFS sector from India’s leading Ratings and Research Advisory Company.