KPIT Tech declines 4% post Q3FY19 numbers - Highlight Investment Research

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Wednesday, 16 January 2019

KPIT Tech declines 4% post Q3FY19 numbers

KPIT Technologies' shares were trading 4% down on Wednesday after the company reported a lower-than-expected set of numbers for Q3FY19 on all fronts.

Revenue during the quarter declined by 1.6% qoq to Rs1,061cr against the median consensus estimate of Rs1,108cr. Revenue in dollar terms declined 2.3% qoq to $149mn. Reported EBITDA came in at Rs93cr, down 15.0% qoq against the median consensus estimate of Rs113cr. The EBIT margin stood at 8.8%, down 138bps qoq. The reported PAT declined by 22.1% qoq to ~Rs64cr.

The fall could be attributed to furloughs and holidays which led to an average loss of 1.5 billing days per person. This had a negative impact of ~2.5% on IT revenues. Additionally, there were two large projects completed during the quarter leading to lower billings and revenue impact of 3.5% on the IT revenues.





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