DBT Bureau
Bengaluru, 16 June 2024
Engineering services firm KPIT, which specialises in the automotive space, is likely to remain the fastest-growing ER&D player in India as the company projects a revenue growth of 18-22% in the current financial year (FY25).
“Our constant currency revenue growth, we believe, should be in the range of 18% to 22% and an EBITDA margin of more than 20.5% (in FY25). Revenue growth will be broad-based across practices and geographies,” SB (Ravi) Pandit, Cofounder & Chairman of KPIT Technologies has said during the analyst call.
In the current financial year, the company would invest in technology areas like cross-practice offerings as well as AI adoption. Moreover, it would also focus on Asia as a geography to accelerate its growth further.
In FY24, the company posted a revenue growth of 39.1%, making it the fastest-growing engineering services firm in India. In absolute terms, KPIT’s revenue stood at $587 million.
“The growth was led by passenger car vertical although there was also a double-digit growth in the commercial vehicles as well. The growth was broad-based across multiple geographies, with Europe and Asia leading the growth,” the company has said.
According to the company, strategic accounts contributed to 85% of the total revenue for FY’24 as a whole, that translated into 44% year-on-year growth over the past year.
While passenger cars vertical contributed $453 million to the company’s top line, commercial vehicles contributed $111.5 million during the last financial year. The growth rate in the passenger cars vertical stood at 44% year-on-year as compared to the 11% reported in commercial vehicles.
Europe remained the biggest geographical contributor to KPIT’s top line with the company drawing $305.5 million, up 56.4% year-on-year basis. The company drew revenue of $180.85 million, a rise of 20.7% over the past year. Revenue from Asia grew 38% to $100.95 million during the last fiscal year.
