KPIT Q1 net up 27% at Rs 55 crore

Pune-based KPIT Technologies, a product engineering and IT consulting firm, today reported increase of 27 per cent in its net profit at Rs 55 crore as compared to Rs 43.2 crore last year for the first quarter ended on June 30, 2016. The revenue also witnessed an increase of 5.78 per cent at Rs 803 crore as compared to Rs 759 crore last quarter.

The geography that took the major hit was USA which accounted for 67.5 per cent of the income, and saw a growth of a mere 2.5 per cent year-on-year.

Europe, which accounted for 18.4 per cent of the revenue, fared better growing by 16 per cent.

Commenting on results, Ravi Pandit, chairman & group CEO, KPIT said: “The current quarter results are in line with our communication earlier. In the changing world of IT where investments are directed more towards new technologies and are based on critical customer needs, we are getting ready with our investments in Digital Technologies, IoT, Industry Specific Solutions and Account Management."

Kishor Patil, co-founder, CEO & MD, KPIT added: "The revenue decline in the current quarter coupled with the wage hikes, has affected the profitability during the quarter. The revenue decline is a result of reduction in IT spend by some of our customers."

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