DBT Bureau
Bengaluru, 29 April
Days after canceling his trip to India, Elon Musk, CEO of automotive major Tesla made a surprise visit to China. This has created fears of Musk’s India plan not seeing light of the day in the near future. Earlier, Musk was reportedly planning to visit India to consider setting up of electric vehicle assembly unit in India. India recently offered a new EV policy with several incentives like lower import tariffs for attracting foreign automakers such as Tesla. Tesla is yet to enter the Indian market, which has recently emerged as the 3rd largest automotive market, surpassing Japan. Now, it is to be seen whether Musk will keep his India plans intact after the General Elections.
2- KPIT Technologies sees FY25 revenue growth at 18-22%
Engineering services firm KPIT Technologies’ revenue forecast has been the highest so far among all the Indian IT and engineering firms. The company has given a revenue growth forecast of 18-22% for FY25. The firm sees its operating margin at more than 20.5%.
“We have consistently delivered fifteen sequential quarters of healthy growth in revenues and operating profits. Software content inside and outside the vehicle is growing in areas of alternate fuel technologies, autonomous and connectivity. Global OEMs are pledged to change their business model. Basis committed investments by our strategic clients, a strong pipeline, and solid wins of $261 million in Q4, we continue to witness robust demand. We start FY25 on a strong footing and expect to deliver CC revenue growth of 18%-22% with EBITDA margins of 20.5%+,” Kishor Patil, co-founder, CEO, and MD of KPIT said.
Notably, all the large peers of KPIT in the engineering services space are not so optimistic about growth prospects in FY25 after two years of rapid growth.
3- Mphasis outlook for FY25 better than last fiscal
Mphasis has seen a slowdown impacting its top line in recent quarters. With a significant portion of its revenue coming from BFSI (banking, financial services & insurance), the company had been hit in past quarters. However, green shoots seen in this segment are likely to support the company in the current financial year.
“Management alluded to the duality in the market, with macro uncertainty and delayed decision-making on one hand and heightened focus on technology on the other. The company expects FY25 to be better than FY24 and FY25 revenue growth to be above the industry’s average by focusing on account strategy. The company returned to sequential revenue growth in H2FY24 with early signs of TCV (total contract value) to revenue conversion picking up, though pressure on discretionary spends continues,” Brokerage firm, Emkay wrote in a note.
