KPIT Technologies shares rise despite decline in Q2 net profit

KPIT Technologies reported a nearly 29 per cent year-on-year decline in consolidated net profit for the second quarter ended September, falling to approximately Rs 121 crore from Rs 169 crore in the previous year. The company attributed the decline to pressure from the automobile market, specifically noting a reduction in business from two major clients located in Europe and Japan.

Despite the profit drop, the company's shares rose by 8 per cent as management provided positive outlooks regarding margin expansion and operational efficiency. Revenue from operations grew 6.5 per cent year-on-year to Rs 1,691 crore. While revenue from the passenger car segment dropped 7.8 per cent, the commercial vehicle segment saw a 27.3 per cent increase.

Management expects the impact from the declining accounts to bottom out within the next few quarters. The company is also focusing on AI-led productivity gains and the integration of Caresoft to strengthen its capabilities in vehicle engineering and manufacturing consulting.