KPIT Cummins Extends services to Defense and PSU sectors, Sets target of USD 500 million by FY 2013 end

Revenue grows by 2.4% Q-o-Q to reach INR 1769 million, EBITDA increases 27.9% Q-o-Q.

Bangalore: KPIT Cummins today announced financial results for Q2 FY 2010 ending September 30, 2009. Amidst early signs of revival, company sees traction in emerging markets; steps-up action in select adjacent verticals.

The company has set itself a target of USD 500 million revenues by end of FY 2013 by continuing to focus on select industries and strengthening key practice/ competency areas.

"During the last one year the manufacturing industry has undergone a big paradigm shift with an extraordinary rise in demand for more fuel efficient, less polluting and safer products. We are working with our existing and new customers to bring such products faster to market. We have set ourselves a goal of reaching $500 million in revenues by the end of FY 2013, while continuing our sharp focus on the manufacturing industry and extending our services to select cognate verticals," said Ravi Pandit, Chairman & Group CEO.

"Our current quarter’s results reflect the revival trends that are observed in our focus markets. The slide in revenues in the last quarter has been arrested and we are on the growth path again. Our profitability outlook continues to be positive and we believe we should end the year with Net Profit after Tax in the range of Rs. 770 Million to 820 Million. With the business scenario gradually recovering, we continue with our investments in R&D, Practice Development and People Development. We are also focusing on extending our service offerings to the Public Sector Undertakings (PSUs) and Defense sectors. We are confident that this would help us gain market leadership in select practice areas," said Kishor Patil, MD & CEO

For the quarter ended September 30, 2009, it's revenue increased by 2.4% Q-o-Q to INR 1769.86 Mn. In USD terms, Revenues stood at USD 36.35 Mn. Q-o-Q growth of 3%. EBITDA grew by 28% Q-o-Q and 20% Y-o-Y to INR 468.37 Mn. EBITDA margins expanded by 5.3% to 26.5% during the quarter. Net Profits for the quarter stood at INR 211.95 Mn, a Y-o-Y growth of 27%. 4 new Customers were added during the quarter, taking the total number of customers to 137.

Engagement highlights

During the last year, manufacturing industry went through seismic shifts and the business basics were reset. Product expectations have been redefined and it is imperative on manufacturers to bring products that are more fuel efficient, cause lesser emission, are smarter and are made available at affordable price points. This has thrown up new opportunities for KPIT Cummins and the company is in a vantage position to leverage these.

Automotive

~ Technology solutions for sustainable and Green growth.
- Commenced strategic consulting engagement for an Indian Auto OEM.
- Consulted an American OEM on Human Machine Interface (HMI) Tool selection.
- Developed an end-to-end software solution for night vision and pedestrian detection for an Asian Tier 1
- Built a Dedicated Short Range Communication (DSRC) based Advanced Traffic management solution for an American Tier 1
- Furthered automotive software standardization efforts: Selected for AUTOSAR (AUTomotive Open System Architecture) Basic Software implementation for a leading European OEM. Introduces AUTOSAR 3.0 solution in association with NEC Electronics.

Industrial Equipments

~ ‘First time right’ solutions maintaining ‘highest quality standards’
- Integrates multiple assembly lines for UK operations of a leading American Tier 1. KPIT Cummins’ reliable and scalable re-engineered MES (Manufacturing Execution Systems) solution replaces complex legacy systems.
- Commenced a strategic enterprise IT engagement with a national automotive testing laboratory, to help them reduce the time required for testing, validating and documenting the test results for Auto Manufacturers.
- Commenced engagement with an Asian auto component manufacturer and a leading Asian contract logistics company to implement end-to-end templatized ERP solution for business operations.

Hi-tech and Semiconductor

~ Solution accelerators for quick-time-to-market
- Engaged with a leading European semiconductor company on development of MCU for Dashboard Cluster for a High End Luxury Car.
- Started project on developing reference designs for consumer and Automotive applications for a leading Asian semiconductor company. Established Center of Excellence for Motor Controls.
- Commenced work on developing complete digital section of a controller chip for a leading European manufacturer of IC solutions.

Diversified Financial Services

~ Customer award for excellent teamwork towards breakthrough Improvement in Quality & Productivity
- Initiates on-site/offshore reverse engineering project for a leading retail bank of South Africa.