KPIT Technologies Inc. stock price fell as much as 14% in trading on Thursday after management shared a cautious outlook for the second half of the current fiscal year in a post-earnings interaction with CNBC-TV18.
KPIT Tech CEO Kishor Patil told CNBC-TV18 that sales will be at the lower end of the growth guidance range of 18% to 22%. However, profitability will be better.
Patil hinted at delays in certain projects, which led to this cautious comment, but underlying growth remains positive.
Pune-based KPIT Technologies reiterated its revenue growth outlook for fiscal 2025 and full-year profitability outlook when it reported its September quarter results on Wednesday.
The company said its sales growth outlook for FY25 is in the range of 18-22%, and its EBITDA margin outlook is 20.5%.
KPIT Tech’s net profit remained unchanged at Rs 204 million compared to the June quarter, while revenue grew 8% to Rs 1,471 million.
EBITDA (earnings before interest, tax, depreciation and amortization) increased by 4% to Rs 310 million and operating margin was 20.5%.
Additionally, KPIT Technologies’ board of directors has approved raising up to Rs 2,880 crore through Qualified Institutional Introduction (QIP) or other permissible modes, the company said in a filing.
The company may raise funds in one or more installments through QIP. Patil also highlighted that the company is considering several strategic acquisitions in the next six to nine months.
KPIT Tech’s share price is currently trading at 1,396.05 ₹, down 14%.
(Editor: Hormaz Fatakia)
First Published: October 23, 2024 1:04 PM IST
