{"id":135091,"date":"2022-10-24T07:07:19","date_gmt":"2022-10-24T11:07:19","guid":{"rendered":"https:\/\/44.250.171.167\/?p=135091"},"modified":"2022-10-24T07:07:21","modified_gmt":"2022-10-24T11:07:21","slug":"kpit-technologies-ltd-q2-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/kpit-technologies-ltd-q2-fy23-earnings-conference-call-insights\/","title":{"rendered":"KPIT Technologies Ltd Q2 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"KPITTECH Stock | KPIT Technologies Ltd Q2 FY23 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/kQDUovA4LWI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from KPIT Technologies Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/KPITTECH\/\">KPITTECH<\/a>) Q2 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:05:31] KPITTECH said it saw a downward trend in attrition and expects it to be less than 20% going forward.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:11:59]Chandramouli Muthiah of Goldman Sachs asked about employee utilization levels after the hiring pickup and utilization target. Kishor Patil MD answered that KPIT cannot go into too many details, but KPIT increased its headcount by 11% in 1Q23 and by 8% in 2Q23. \u00a0The utilization will be going up in the next two quarters.<\/li>\n<\/ul>\n<ul>\n<li>[00:13:27] Chandramouli Muthiah of Goldman Sachs enquired about drivers of organic revenue growth upgrade. Sachin Tikekar Joint MD answered that the confidence comes as the pipeline has increased to about 142 million and also due to the demand that\u2019s generated and the ability to scale going up due to lower attrition.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:22] Pratap Maliwal with Mount Intra enquired about the reason for architecture and middleware consulting vertical declining slightly in 2Q after strong growth in 1Q. Sachin Tikekar Joint MD said these are all long term programs and it should be looked on YonY, which was in excess of 32%. KPITTECH believes that the growth on a YonY basis will continue to be strong going forward.<\/li>\n<\/ul>\n<ul>\n<li>[00:22:30] Sandeep Shah from Equirus Securities asked about Technica CY22 run rate, if it would have a 15-20% growth rate, once it\u2019s consolidated. Sachin Tikekar Joint MD answered that on its own, it will be a 15% plus growth rate. And with synergies, KPITECH is looking at a better growth rate than that.<\/li>\n<\/ul>\n<ul>\n<li>[00:25:27] Sandeep Shah from Equirus Securities enquired if any OEM client from Europe has shown caution due to gas shortage. Sachin Tikekar Joint MD clarified that engagements with European T25 clients are strong. There are macro challenges but no slowdown in immediate future.<\/li>\n<\/ul>\n<ul>\n<li>[00:30:50] \u00a0Nitin Padmanabhan with Investec enquired by when the company expects to see some traction of large deals in the US. Sachin Tikekar Joint MD said that US has growth substantially. Over a period of time it\u2019s 40% of KPIT business. KPIT remains bullish on its growth prospects in US riding on passenger car, commercial vehicles, and the new and existing OEMs.<\/li>\n<\/ul>\n<ul>\n<li>[00:39:13] Andrey Purushottam of Cogito Advisors asked that if salary hike, fresher intake and lower utilization impacted lower profit figures in 2Q23. Sachin Tikekar Joint MD said the gross impact of salary hike was about 300 bp and net impact on EBITDA was about 90 bps. So majorly EBITDA was impacted by salary hikes.<\/li>\n<\/ul>\n<ul>\n<li>[00:40:54] Andrey Purushottam of Cogito Advisors also enquired if the structural margin trends would improve in future and its contributors. Sachin Tikekar Joint MD answered KPIT has given a range of 18.5-19%, which is an improved outlook for FY23. In future, there are some levers like leverage over fixed expense, offshoring and improvement of realization that would drive margin.<\/li>\n<\/ul>\n<ul>\n<li>[00:45:57] Hiren Ved from Alchemy Capital asked about KPIT\u2019s thoughts on the environment on the supply side easing out in terms of hiring. Sachin Tikekar Joint MD replied that overall KPIT is seeing more easing of supply chain over last few months due to decline in attrition and leveraging of freshers with experienced people.<\/li>\n<\/ul>\n<ul>\n<li>[00:50:12] Chirag Kacharia from Ashika Institutional asked about KPIT\u2019s plans on domestic Indian market going forward and outlook on US and Europe. Sachin Tikekar Joint MD said that in US and Europe the business is strong and has a strong pipeline. In India, KPIT have been involved in certain policymaking, supporting different government bodies and leveraging that experience for Indian market.<\/li>\n<\/ul>\n<ul>\n<li>[00:52:57] Nitin Sharma asked about work from home\/office plans and its potential impact and timelines. Sachin Tikekar Joint MD said the plan is to move from work from home to hybrid. In future, KPIT will bring more focus and guardrail around hybrid model in India, where 80% of its employees are. In other geographies, the decision will be taken depending on the convenience of clients and employees.<\/li>\n<\/ul>\n<ul>\n<li>[00:55:25] Rithvik Sheth of One-up Financial asked about the Technica acquisition and associated depreciation if it will be significant. Kishor Patil MD said that the exact quantum will be known after the consolidation. It will not have any material impact this year and when the numbers are crystallized the numbers will be released to everyone.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from KPIT Technologies Ltd (KPITTECH) Q2 FY23 Earnings Concall Management Update: [00:05:31] KPITTECH said it saw a downward trend in attrition and expects it to be less than 20% going forward. Q&amp;A Highlights: [00:11:59]Chandramouli Muthiah of Goldman Sachs asked about employee utilization levels after the hiring pickup and utilization target. Kishor Patil MD [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"KPIT Technologies Ltd Q2 FY23 Earnings Conference Call Insights #KPITTECH #Q2 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392],"tags":[10169,9007,9050],"class_list":["post-135091","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","tag-earnings","tag-information-technology-services","tag-technology-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128647,"url":"https:\/\/alphastreet.com\/india\/kpit-technologies-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":135091,"position":0},"title":"KPIT Technologies Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"April 28, 2022","format":false,"excerpt":"https:\/\/youtu.be\/e1mwIwvcLak Key highlights from KPIT Technologies Ltd (KPITTECH) Q4 FY22 Earnings Concall Management Update: For FY23, KPIT said it\u2019s looking at revenue growth in the range of 18-21% in constant currency, 18-19% EBITDA margin and about 25% volume growth. KPIT ended the year with a headcount of about 8,250 people.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":144711,"url":"https:\/\/alphastreet.com\/india\/kpit-technologies-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":135091,"position":1},"title":"KPIT Technologies Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 2, 2023","format":false,"excerpt":"Key highlights from KPIT Technologies Ltd (KPITTECH) Q4 FY23 Earnings Concall Q&A Highlights: [00:13:37] Chandramouli Muthiah of Goldman Sachs asked about long-term drivers of electric mobility in the European Union and how long it could take to develop an affordable mass-market EV. \u00a0Ravi Pandit Chairman said the EU, US, and\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139858,"url":"https:\/\/alphastreet.com\/india\/kpit-technologies-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":135091,"position":2},"title":"KPIT Technologies Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 2, 2023","format":false,"excerpt":"Key highlights from KPIT Technologies Ltd (KPITTECH) Q3 FY23 Earnings Concall Q&A Highlights: [00:13:42] Chandramouli Muthiah from Goldman Sachs enquired about the nine month organic constant currency growth. Sunil Phansalkar Head of IR answered that YTD growth in constant currency terms was 24%. [00:20:23] Vimal Gohil of Alchemy Capital enquired\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":127018,"url":"https:\/\/alphastreet.com\/india\/kpit-technologies-ltd-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":135091,"position":3},"title":"KPIT Technologies Ltd Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"February 3, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=XShka_VdYkU Key highlights from KPIT Technologies Ltd (KPITTECH) Q3 FY22 Earnings Concall Management Update: KPIT commented that its key geography, USA, is expected to grow strongly in the coming quarters. During 3Q, the company added 9% headcount organically. Q&A Highlights: Vimal Gohil from Union Mutual Fund asked about company\u2019s onsite\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139619,"url":"https:\/\/alphastreet.com\/india\/kpit-technologies-limited-q3-fy23-net-profit-jumps-by-48\/","url_meta":{"origin":135091,"position":4},"title":"KPIT Technologies Limited Q3 FY23; Net Profit Jumps By 48%","author":"Hardik Bhandare","date":"January 31, 2023","format":false,"excerpt":"KPIT Technologies Limited (NSE: KPITTECH) reported Revenue from Operations for Q3 FY23 of \u20b9917.11 Crore up from \u20b9622.36 Crore year on year, a growth of 47%. Consolidated Net Profit of \u20b9104 Crore, jumps 48% from \u20b970.3 Crore in the same quarter of the previous year. The Earnings per Share is\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/a3d590be-6de2-4822-9adb-c1949e28c78b-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/a3d590be-6de2-4822-9adb-c1949e28c78b-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/a3d590be-6de2-4822-9adb-c1949e28c78b-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/a3d590be-6de2-4822-9adb-c1949e28c78b-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/a3d590be-6de2-4822-9adb-c1949e28c78b-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/a3d590be-6de2-4822-9adb-c1949e28c78b-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":143045,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-kpit-technologies-limited-for-q3-fy23\/","url_meta":{"origin":135091,"position":5},"title":"Earnings Summary Of KPIT Technologies Limited For Q3 FY23","author":"Hardik Bhandare","date":"February 28, 2023","format":false,"excerpt":"KPIT Technologies (NSE: KPITTECH) is an Indian multinational company that specializes in providing IT consulting and product engineering solutions and services to automotive, manufacturing, energy and utilities, and life sciences companies. The company was founded in 1990 and is headquartered in Pune, India. KPIT has a global presence with offices\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/135091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=135091"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/135091\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=135091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=135091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=135091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}