KPIT Technologies Ltd — Interim / Quarterly Report 2021

Aug 3, 2020

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KP 11·

August 3, 2020

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001.

Scrip ID: KPITTECH Scrip Code: 542651

Kind Attn: The Manager, Department of Corporate Services

National Stock Exchange of India Ltd., Exchange Plaza, C/1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai - 400051.

Symbol: KPITTECH Series: EQ

Kind Attn: The Manager, Listing Department

~~Subect:~~ Investor Update - Q1 FY 2021.

Dear Sir/ Madam,

Please find enclosed the investor Update - Q1 FY 2021. Kindly take the same on your records.

Thanking you.

Yours faithfully,

For KPIT Technologies Limited (Formerly KPIT Engineering Limited)

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Nida Deshpande Company Secretary & Compliance Officer

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~~-~~ ~~Encl:~~[As mentioned above.]

KPIT Technologies Limited (Formerly KPIT Engineering Limited) Registered & Corporate Office: Plot No. 17, Rajiv Gandhi lnfotech Park, MIDC-SEZ, Phase-Ill, Maan, Taluka-Mulshi, Hinjawadi, Pune-411057, India. CIN: L74999PN2018PLC174192

0 +91 20 6770 6000 E info@kpit.com W kpit.com

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August 03, 2020 Investor Update Q1FY21

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KPIT Technologies Ltd.

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Forward Looking Statements

Some of the statements in this update that are not historical facts, are forward-looking statements. These forward-looking statements include our financial and growth projections, as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the competitive market for the type of services and solutions that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry

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Performance Overview

• Q1FY21

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Q1FY21 Performance Overview

KPIT Q1FY21 USD revenue at USD 65.25 Million, a Y-o-Y decline of 9.1% in constant currency terms

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Revenue decline of 13.8% Q-o-Q in constant currency terms

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Q1FY21 EBITDA at 13.4%, Net Profit at ₹ 240 Million, 21.7% Y-o-Y decline in Net Profit

New deal signed, worth USD 60+ M over 5 years

Net Cash as at the quarter end stood at ₹ 3,939 Million

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Additional facts - timeseries

Qtr End Net Cash ₹ M

Qtr End DSO

87 82 3,939 72 3,278 67 64 66 2,584 2,041 1,810 900 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Revenue $ M EBITDA % 77.23 76.94 76.88 14.6% 72.75 71.05 13.4% 13.4%[13.5%] 13.4% 65.25 12.8% Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21

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Management Quotes

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Kishor Patil, Co-founder, CEO and MD, KPIT said,” The performance of this quarter is in line with our expectations in the face of the global pandemic. The mobility industry is stabilizing, and we are witnessing increased interest from our strategic clients with prioritizing of investments in Electric Powertrain, Autonomous Driving and Digital Cockpit. We have closed two large deals in consecutive quarters now and remain optimistic about growth and gradual improvement in other operating parameters in H2FY21 and beyond”.

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Sachin Tikekar, President and Whole-time Director, KPIT said, ” Our priority during the last quarter was to keep the well-being of our employees in the center, uphold all our commitments to our clients and to remain liquid to get through the difficult spell. We did a tremendous job on all the three; thanks to the unwavering commitment of our employees and great support from our clients. We continue to invest in our Practices to do more with less for our clients as they tread their way through the global pandemic”.

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Cash Flow – Major Movement

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INR Mln
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Cash Profit – 570 Decrease in Working Capital – 690

Capex – 332 Loans repaid – 166 MicroFuzzy - 170

Cash and Cash Equivalents break-up	₹ M
In Investment Accounts (in India)	1,494
In Investment Accounts (outside India)	899
In Operating Accounts	1,926
TOTAL	4,319

		Q-o-Q Increase in Net Cash of INR 660 Million	Q-o-Q Increase in Net Cash of INR 660 Million	Q-o-Q Increase in Net Cash of INR 660 Million	Q-o-Q Increase in Net Cash of INR 660 Million
	NET CASH (INR Mln)		Q1FY21	Q4FY20
	Gross Cash		4,319	3,820
	Long Term Debt		380	376
	Short Term Debt		NIL	166
	NET CASH		3,939	3,278
	FCF/EBITDA – 125%
	Net Cash/MCap –			22%

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FCF = Cash Flow from Operations minus capex

Movement in Profit, Major Items – Q4FY20 to Q1FY21

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Q4 FY20 Revenue
Sequential drop in ₹
PAT Drop
revenue
₹ 371 M (635)
Salary Cost Lower cost due to
(442) salary restructuring
Depreciation
Additional lease of
(Lease)
new German office
Travel & Travel, sub-
(36)
SGA contracting, office
(104) operations
Other
Income & Lower forex gain and
Exceptional no exceptional item Tax Q1 FY21
(50) PAT
(41)
₹ 240 M
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Significant Deal Win

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A leading Automotive Tier I and system supplier for Autonomous Driving and ADAS and a market leader in automotive safety electronics products has selected KPIT as their strategic software partner. This Strategic partnership will leverage cutting edge software technology from KPIT for various vehicle programs globally for . Autonomous Driving, ADAS and AUTOSAR domains The engagement pans for 5 years and the deal value is estimated at USD 60+ million.

The partnership involves KPIT to collaborate seamlessly with them across multiple countries in Europe, US and Asia for various production programs.

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Other Major Deal Wins

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A leading German Car Manufacturer selected KPIT for a project in electric area powertrain

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A leading Asian car manufacturer selected KPIT for a project in the connected domain

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A German Car Manufacturer selected KPIT for a in ADAS area leading project

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A leading Asian Tier I supplier selected KPIT for a project in the electric area powertrain

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A leading US Tier I Supplier selected KPIT for multiple projects in AD-ADAS domain

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Other Updates

New Software Engineering Center in Munich, Germany

This will be KPIT’s largest global software integration and technology center in the area of Electrification, Autonomous Driving, AUTOSAR & Vehicle Diagnostics and will also house in other areas expertise including Digital Cockpit Represented by over 700 employees from more than 25 nationalities, this facility will serve as a global competence center to meet the complex automotive software needs amid significant technology shifts

The KPIT facilities in Munich will now existing consolidate under this one center

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The way forward

Increase in offshoring

Mobility industry stabilizing

Increase in offshoring Stabilized operations stabilizing Improved Utilization Lower Depreciation due Cost savings to be to closure of 2 facilities materialized for full Salary restoration quarter Revenue Growth, Improvement in Higher Depreciation Revenue Growth, EBITDA & PAT Margins Marginal Improvement Q4 FY21 in EBITDA Margins Flattish Revenue, Flattish Margins Q3 FY21 Q2 FY21

Consistent Focus on Cash Conversion and Productivity Improvement

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Updates

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Thought Leadership Updates

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German automotive magazine Automobil-Elektronik The leading German automotive magazine, AUTOMOBIL-ELEKTRONIK interviewed Kishor Patil, about various topics related to automotive software and the role KPIT plays as the mobility industry undergoes a paradigm shift. Kishor Patil spoke about KPIT’s positioning of becoming the Global No.1 Software Integration Partner in this Cover-interview.

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KPIT’s Powertrain team article was published in Auto Tech Review

An article authored by KPIT’s Powertrain team was published in Auto Tech Review, leading automotive magazine in India. The article talks about how software in automobiles helps curb air pollution

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CSR @ KPIT

KPIT Technologies innovates versatile ventilators in fight against COVID-19

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Innovation awarded by Marico Foundation as the top winner in their Innovate2BeatCOVID national challenge

Ventilators are a result of KPIT’s passion for engineering & commitment towards community contribution

KPIT ventilator is engineered with the best national and international benchmark parameters & features. It is designed to be portable, robust, user-friendly and safe to provide support during the entire spectrum of need, from ambulances to ICUs.

These ventilators have been certified by NABL (National Accreditation Board for Testing and Calibration Laboratories)accredited laboratories and validated as versatile, safe and robust by doctors.

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Financial and Operational Data

• Snapshot

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INR MN

Profit & Loss Account Snapshot

	DETAILS Q1FY21 Q4FY20 Q1FY20	DETAILS Q1FY21 Q4FY20 Q1FY20	DETAILS Q1FY21 Q4FY20 Q1FY20	DETAILS Q1FY21 Q4FY20 Q1FY20
	Revenue from Operations 4,927.10 5,562.28 5,057.51			This includes forex loss of ₹ 18.46 Million which is excluded in EBITDA computation
	Other Income 25.17 76.79 14.56
	Total Income 4,952.27 5,639.07 5,072.07
	Operating Expenses	4,283.19	4,810.91 4,318.80
	EBITDA 662.37 751.37 738.71
	Depreciation 330.03 293.95 238.23
	EBIT 332.34 457.42 500.48
	Finance Costs 49.31 44.96 45.81
	Change in FMV of Investments 3.21 47.43 (46.44)
	Profit Before Exceptional Items 292.95 536.68 422.79
	Exceptional items - (64.15) (24.66)
	PBT 292.95 472.53 398.13
	Tax 50.70 91.53 88.02
	PAT 242.25 381.0 310.11
	Profit Attributable to owners of company 240.17 371.36 306.89
	Profit Attributable to non-controlling interest 2.08 9.64 3.22

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INR MN

Balance Sheet Snapshot

ASSETS	Q1FY21	Q4FY20
NON-CURRENT ASSETS
Property, Plant & Equipment	2,095.86	2,128.87
Right-of-use Assets	2,977.66	1,627.62
Other Tangible Assets	83.28	51.70
Goodwill & Other Intangibles	1,652.68	1,507.85
Other Non-Current Assets	987.39	892.39
TOTAL NON-CURRENT	7,796.87	6,208.43
CURRENT ASSETS
Inventories	76.25	115.27
Cash and Cash Equivalents	4,318.57	3,820.53
Trade Receivables	4,345.75	4,486.77
Other Current Assets	1,969.97	1,719.62
TOTAL CURRENT	10,710.54	10,142.19
TOTAL ASSETS	18,507.41	16,350.62

EQUITY & LIABILITIES		Q1FY21	Q4FY20
EquityShare Capital		2,689.02	2,688.8
Other Equity		7,930.92	7,780.77
Equityattributable to owners		10,619.94	10,469.57
Non-controllinginterests		21.03	35.71
TOTAL EQUITY		10,640.97	10,505.28
NON-CURRENT LIABILITIES
Borrowings		NIL	NIL
Lease Liabilities		2,356.68	1,143.95
Other Non-Current Liabilities		159.76	150.67
TOTAL NON-CURRENT		2,516.44	1,294.62
CURRENT LIABILITIES
Borrowings		380.08	542.67
Trade Payables		902.14	846.74
Lease Liabilities		461.45	313.51
Others		3,606.33	2,847.80
TOTAL CURRENT		5,350.0	4,550.72
TOTAL EQUITY AND LIABILITIES		18,507.41	16,350.62

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USD MN

Revenue Break-up

	Geography	Q1FY21	Q4FY20	Q1FY20	Q-o-Q	Y-o-Y	Y-o-Y
	US	27.45	30.41	30.29	(9.7)%	(9.4)%
	Europe	25.74	31.91	27.00	(19.4)%	(4.7)%
	Asia	12.06	14.62	15.45	(17.5)%	(22.0)%
	TOTAL	65.25	76.94	72.75	(15.2)%	(10.3)%
	Verticals	Q1FY21	Q4FY20	Q1FY20	Q-o-Q	Y-o-Y
	Passenger Cars	50.76	58.33	52.88	(13.0)%	(4.0)%
	Commercial Vehicles	13.55	16.67	17.63	(18.8)%	(23.2)%
	New Mobility	0.61	0.83	0.54	(26.7)%	13.0%
	Others	0.33	1.11	1.70	(69.8)%	(80.3)%
	TOTAL	65.25	76.94	72.75	(15.2)%	(10.3)%
	Practices	Q1FY21	Q4FY20	Q1FY20	Q-o-Q	Y-o-Y
	Powertrain	23.92	25.01	25.10	(4.4)%	(4.7)%
	AD-ADAS	14.37	19.87	15.58	(27.7)%	(7.7)%
	Connected Vehicle	8.24	8.07	10.91	2.1%	(24.5)%
	Others	18.72	23.99	21.16	(22.0)%	(11.5)%

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P&L Metrics

	Q1FY21	Q4FY20	Q1FY20	Q-o-Q	Y-o-Y
Revenue by Contract Type
Time & Material Basis	48.2%	48.6%	48.6%	(15.9)%	(11.0)%
Fixed Price Basis	51.8%	51.4%	51.4%	(14.6)%	(9.7)%
Customers
Strategic Customer Revenue (T21)*	86%	82%	79%	(11.1)%	(2.4)%
Active Customers	55	58	60
			45,576 14.6% 9.9% 6.1% 22.1% 1.14 1.14
Revenue per Devp. Employee USD 41,394 46,675
EBITDA Margin	13.4% 13.5%
EBIT Margin	6.7% 8.2%
PAT Margin	4.9% 6.7%
Effective Tax Rate	17.3% 19.4%
EPS (Basic)	0.89 1.38
EPS (Diluted)	0.89 1.38

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• Out of the target 25, strategic relationships with 21 accounts established and hence revenue for those accounts considered

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Currency wise revenues, Hedging Details

Currency wise revenue	Q1FY21	Q4FY20	Q1FY20
USD	43.1%	41.2%	41.8%
EUR	34.8%	32.7%	29.2%
GBP	4.2%	8.1%	7.5%
JPY	9.4%	9.6%	12.0%
INR	5.3%	5.9%	6.5%
Others	3.2%	2.7%	2.9%

Realized Rate Q1FY21 Q4FY20 Q1FY20 INR/USD 75.51 72.29 69.52

Hedge Details	Q1FY21
Hedge Rates
USD/INR	75.32
EUR/INR	85.36
GBP/INR	94.90
Hedge Amounts(Mn)
USD/INR	18.65
EUR/INR	6.00
GBP/INR	4.55

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Headcount Data

Period End Headcount	Q1FY21	Q4FY20	Q1FY20	Q-o-Q	Y-o-Y
Development	6,305	6,594	6,385	-	-
Enabling & Sales	501	531	506	-	-
Total	6,806	7,125	6,891	-	-

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Contact us

• Contact

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Conference Call Details - TBU

Conference name : KPIT Technologies Q1 FY2021 Post Earnings Conference Call Date : Tuesday August 04, 2020 Time : 1600 Hrs. Participants : Mr. Kishor Patil, Co-founder, CEO & MD Mr. Sachin Tikekar, President & Board Member Mrs. Priya Hardikar, SVP & Head of Finance Mr. Sunil Phansalkar, Head-IR Dial-in Numbers for all participants

Primary number : +91 22 6280 1116 Local Access : +91 22 7115 8017 International Numbers : USA - 1 866 746 2133 | UK - 0 808 101 1573 | Singapore - 800 101 2045 Hongkong - 800 964 448

About KPIT Technologies

KPIT (BSE: 542651; NSE: KPITTECH), is a global technology company providing software solutions that help mobility companies leapfrog towards autonomous, clean, smart and connected future. With 7,000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables customers accelerate implementation of next generation mobility technologies. For more information, visit http://www.kpit.com 24

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Contact

For Investor Queries

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Email Sunil.Phansalkar@kpit.com

Desk Phone

• 91 20 6770 6997

Cell + 91 98509 66011

Website www.kpit.com

Sunil Phansalkar

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Contact

For Media Queries

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Email Sunil.R@kpit.com

Desk Phone + 91 80 6606 6000 (7865)

Cell + 91 99001 50180

Website www.kpit.com

Sunil B R

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Thank You

8/3/2020

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