The shares of KPIT Tech jumped as much as 15 percent on Monday to hit the 52-week high of Rs 385 on the BSE. The stock has risen over 145 percent year-to-date on the back of a robust order pipeline.
The firm has seen its order pipeline rising to a record high in various geographies and segments, Sachin Tikekar, KPIT’s board member told BloombergQuint.
Order from the company’s top clients have surged over 25 percent for the fourth straight quarter in the last three months through June, Tikekar said. It expects this momentum to continue through the financial year as it witnesses a surge in the long-term deals with passenger and commercial vehicle makers.
KPIT Tech is an Indian multinational firm known for providing software services to automotive companies. It was one of the worst-hit firms in the IT and ITes space when the coronavirus pandemic broke out. Its revenues had declined 17 percent sequentially and eight percent on a year-on-year basis.
From then, things have improved for the company. The company’s autonomous driver assistance systems (ADAS) have seen gradual growth. It has also seen growth on the backs of electric power trains in European countries.
Its revenue grew five percent sequentially in the quarter ended June, with operating margin rising over 17 percent. Its revenue has risen from Rs 540 crore in the previous quarter to Rs 567 crore in the first quarter of FY21. Similarly, its EBITDA has risen to Rs 110 crore from Rs 93 crore. Its profit after tax rose to Rs 60 crore from Rs 52.7 crore a quarter ago.
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