KPIT Technologies’ board approved a Rs 2,880 crore fundraising through a qualified institutions placement (QIP) on October 23, a strategic move to support future growth initiatives. Alongside the fundraising decision, KPIT reported its financial results for the quarter ended September 2024, with revenue rising 8% sequentially to Rs 1,471 crore, up from Rs 1,364 crore in the June quarter. However, the net profit remained flat at Rs 204 crore, indicating that while the company managed to boost its top line, profit growth was constrained.
The EBITDA of the company grew 4% to Rs 301 crore: EBITDA margin for Q1FY24 stood at 20.5% against 21.2% reported in the corresponding quarter a year ago. Lower margin, this is indicative of higher operating expenses-in all probability scaling up the operations or investing in initiatives aimed at driving growth. The approval of the QIP indicates that KPIT is preparing to fortify its financial position-a vital prop for building on its business offerings and hastening innovation.
The fundraising initiative aligns with the company’s long-term growth strategy, given that KPIT has been focusing on the automotive engineering segment, among others. Additional capital is expected to be deployed to fund the companies’ new projects and R&D efforts and, when merited, strategic acquisitions.
This financial deal is seen to accelerate KPIT’s competitive position in an evolving market regarding automotive software, especially as demand for technologies in electric and autonomous vehicles keeps growing.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
