KPIT Technologies Ltd — Interim / Quarterly Report 2024

Oct 30, 2023

==> picture [563 x 92] intentionally omitted <==

October 30, 2023

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

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

Scrip ID: KPITTECH Scrip Code: 542651

Kind Attn: The Manager, Department of Corporate Services

Symbol: KPITTECH Series: EQ Kind Attn: The Manager, Listing Department

Sub: Investor Update – Q2 FY 2024.

Dear Sir / Madam,

Please find enclosed the Investor Update – Q2 FY 2024. Kindly take the same on your records.

Thanking you. Yours faithfully, For KPIT Technologies Limited

DESHPANDE Digitally signed by DESHPANDE NIDA YUNUS NIDA YUNUS Date: 2023.10.30 12:27:22 +05'30'

Nida Deshpande Company Secretary & Compliance Officer

Encl.: - as above

KPIT Technologies Limited O +91 20 6770 6000 Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, E ~~Maan, Taluka-M~~ info@kpit.com ulshi, Hinjawadi, Pune-411057, India. W kpit.com CIN: L74999PN2018PLC174192

==> picture [110 x 35] intentionally omitted <==

Reimagining Mobility with YOU

October 30, 2023 Investor Update Q2FY24

KPIT Technologies Ltd.

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 clients 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. In certain cases, the numbers reported in this update might be rounded off to the nearest whole number.

==> picture [61 x 18] intentionally omitted <==

10/30/2023

2

==> picture [148 x 47] intentionally omitted <==

• 1 March 2021

Performance Overview

Q2FY24

Reimagining Mobility with YOU

Performance Overview

• Q2FY24 CC Revenue grows 51.7% Y-o-Y

• FY24 CC Growth outlook increased to 37%+ from 27% - 30% earlier, EBITDA Outlook increased to 20%+ from 19%-20% earlier

Wins and Revenue EBITDA PROFIT Pipeline Reported $ Q2FY24 Q2FY24 Net $ 156M worth Revenue EBITDA at 20% Profit at ₹ engagements growth of post wage 1,409 M closed in the 54.2% Y-o-Y hikes quarter 9.0% CC Y-o-Y EBITDA Y-o-Y PAT Healthy growth, 8.4% growth of growth of Pipeline across Reported $ 73.7%, Q-o-Q 68.7%, Q-o-Q practices growth, Q-o-Q 9.1% 5.1%*

==> picture [61 x 18] intentionally omitted <==

4

• Q-0-Q PAT growth of 16%+ in Q2FY24, excluding one-time gain of ₹ 134 million in Q1FY24

Performance Highlights

Broad based growth across practices and verticals. Growth led by Strategic Accounts, Passenger Car vertical, Electric 01 Powertrain, Autonomous Driving and Digital Connected Solutions practices.

EBITDA margin maintained at 20% post full quarter impact of wage hikes during the quarter. Gross Impact of wage 02 hikes was 250 bps which was offset by revenue growth and net realization improvement.

Q2FY24 other income was slightly higher as compared to last quarter due to lower loss on realization and gains on 03 hedging contracts. ETR was slightly higher as compared to last quarter, in-line with our annual outlook on ETR. There was a one-time gain of ₹ 134 million last quarter. Excluding this, the Net Profit growth for the quarter was 16.8%

Net Cash at quarter end stood at ₹ 5.12 billion post ₹ 04 Acquisition payouts of 987 million (Technica and FMS) and dividend payout of ₹ 718 million. DSO stood at 47 days.

==> picture [324 x 429] intentionally omitted <==

==> picture [61 x 18] intentionally omitted <==

10/30/2023 5

Additional facts - timeseries

Revenue $ M

==> picture [165 x 345] intentionally omitted <==

----- Start of picture text -----

145.2
123.8 [133.9]
110.5
2,399
1,699 [1,9432,200]
----- End of picture text -----

==> picture [429 x 70] intentionally omitted <==

----- Start of picture text -----

71.1 [72.8 77.2 76.9 76.9]
65.3 65.3 [69.7 74.5 77.2 80.483.7 87.1 89.994.2]
----- End of picture text -----

EBITDA ₹ M

[981 1,0411,1501,2141,3321,382] 639[739][727][737][751] 662[697][811][931]

Consistent Performance

==> picture [59 x 58] intentionally omitted <==

13 Consecutive Quarters of Steady Revenue Growth

==> picture [59 x 59] intentionally omitted <==

13 Consecutive Quarters of Steady EBITDA Growth

==> picture [61 x 18] intentionally omitted <==

10/30/2023 6

Management Quotes

==> picture [168 x 174] intentionally omitted <==

Kishor Patil, Co-founder, CEO and MD, KPIT said,” . We are delighted to deliver another quarter, consistent with our robust performance over the last 3 years. Our medium-term business fundamentals and growth drivers remain unchanged. While the geopolitical situation and economic uncertainty across geographies is leading to a softer macro environment, we keep a watchful eye on the impact on our clients and their business priorities. Our clients remain committed to making investments in newer, relevant technologies. Basis our performance so far and near-term visibility, we raise our CC revenue growth outlook for FY24 to 37%+ growth and increase EBITDA margin outlook to 20%+”.

==> picture [163 x 174] intentionally omitted <==

Sachin Tikekar, Co-founder and Joint MD, KPIT said, ” Our relationships with our Strategic Clients continue to get deeper and wider, leading to increased strategic engagements. We will sharpen our focus further on commercial vehicles in the near term. Attrition continues to move in the right direction. As we focus on effective delivery of complex large engagements, we continue to lay emphasis on zero-defect delivery. We are progressing well on co-creation of the sustainability roadmap with our employees. We are happy on integration of the acquired entities and are on track for achieving stated medium-term strategic objectives”.

==> picture [61 x 18] intentionally omitted <==

10/30/2023

7

Cash Flow – Major Movement

==> picture [474 x 264] intentionally omitted <==

----- Start of picture text -----

₹ M
Increase in Working
Capital – 127
Technica Payout – 263
FMS Payout - 724
Dividend Payout - 718
Capex – 534
----- End of picture text -----

Cash and Cash E uivalents break-u ₹ M q p In Investment Accounts (in India) 911 In Investment Accounts (outside India) 889 In Operating Accounts 4,475 TOTAL 6,275

==> picture [396 x 262] intentionally omitted <==

----- Start of picture text -----

NET CASH (₹ M) Q2FY24 Q1FY24
Gross Cash 6,275 5,727
Long Term Debt NIL NIL
Short Term Debt 1,151 465
NET CASH 5,124 5,262
DSO Q2FY24 end : 47 Days
----- End of picture text -----

==> picture [61 x 18] intentionally omitted <==

10/30/2023 8

New Engagements

TCV of new engagements won during the Quarter : $ 156 million

==> picture [84 x 381] intentionally omitted <==

Strategic multi year engagement in the autonomous driving domain for a leading European Car Manufacturer

A few strategic engagements in the electric powertrain domain for a leading American Car Manufacturer

Several engagements in the electric powertrain, autonomous driving and connected domains for a leading European Car Manufacturer

A strategic program in the powertrain domain for a leading American Car Manufacturer

Various strategic engagements in the connected and vehicle engineering domains for a leading Asian OEM

==> picture [61 x 18] intentionally omitted <==

10/30/2023

9

FY24 Outlook – Upgraded !!

Practice & Technology Alignment of Practices towards SDV. Technology Investments in related areas. Cross – practice collaboration, AI adoption

CC Revenue growth of 37%+ from (27% to 30% earlier)

EBITDA Margin of 20%+ (19% to 20% earlier)

==> picture [73 x 65] intentionally omitted <==

Delivery and Operations

Robust competency framework and relentless execution. Agile methodology adoption. Building scale via automation and productivity

==> picture [74 x 65] intentionally omitted <==

People

Improvement in quality of incoming talent. Focus on technical and managerial leadership development.

Strategic Clients

Deepen Strategic Relationships by building proactive solutions to enhance value delivered to clients. Deliver consistent client experience Profitability

Improve Rate Realization with focus on gross margin improvement. Levera e rowth and enhance eo le mix across the ramid g g p p py

==> picture [61 x 18] intentionally omitted <==

10/30/2023

10

==> picture [148 x 47] intentionally omitted <==

• 1 March 2021

Other Updates

Q2FY24

Reimagining Mobility with YOU

KPIT won the Product Innovation Award by NASSCOM

==> picture [653 x 405] intentionally omitted <==

KPIT won the Product Innovation Award in the Ideation to Engineering Leadership category by NASSCOM for Hydrogen Fuel Cell Electric Vehicle in the Ideation to Engineering Leadership category.

==> picture [312 x 203] intentionally omitted <==

==> picture [61 x 18] intentionally omitted <==

10/30/2023 12

KPIT leaders featured on popular media outlets

==> picture [246 x 85] intentionally omitted <==

KPIT Chief Technology Officer and Board Member, Mr. Anup Sable’s interview was featured on HANSER automotive where he shares how KPIT brings the Power of Software Integration to the Mobility Ecosystem .

KPIT Co-founder and Chairman, Mr. Ravi Pandit and KPIT Co-founder, Managing Director, and CEO, Mr. Kishor Patil spoke to BQ Prime about KPIT's journey of continuous growth over the years and how the organization has become an independent software integration partner to global automotive leaders.

Mr. Omkar Panse , Vice President - Head of Software-Defined Vehicle Middleware Solutions, spoke to TechGig , to talk about the opportunities in automotive software for techies .

==> picture [61 x 18] intentionally omitted <==

10/30/2023 13

KPIT at industry events and forums

KPIT’s Associate Vice President, Mr. Tejas Kshatriya , participated as a panelist in NASSCOM ER&D’s immersive series . He shared his insights on emerging innovations in the ER&D landscape and provide a deeper understanding of challenges and solutions related to innovation.

==> picture [343 x 236] intentionally omitted <==

KPIT experts, took the stage at Virtual Vehicle Symposium 2023 in Graz, Austria, to present on " An Approach to Accelerate Software-Defined Vehicle Development, Verification, and Validation through Virtual Engineering .“

Technica Engineering , member of KPIT family was at the ADAS and AV Technology Expo 2023 in California .

==> picture [61 x 18] intentionally omitted <==

10/30/2023 14

KPIT won the Mahatma Award for CSR Excellence 2023

KPIT won the Mahatma Award for CSR Excellence 2023 .

KPIT Co-founder and Chairman, Mr. Ravi Pandit received the prestigious Mahatma Award 2023 for Lifetime Achievement .

==> picture [554 x 384] intentionally omitted <==

==> picture [61 x 18] intentionally omitted <==

10/30/2023 15

Activities from #LifeAtKPIT

More than 700+ KPITians around the world showcased how they are Reimagining Mobility through selfcaptured photographs on World Photography Day.

==> picture [351 x 212] intentionally omitted <==

KPITians participated in the Mill Race , a charity marathon in Columbus, USA . Our volunteers, alongside our incredible runners, ensured the marathon ran smoothly. Additionally, this year, we added to the fun with a Kids Fun Run and a tattoo stall, bringing joy and energy to young participants.

On the occasion of World EV Day , KPITians featured on an exclusive video sharing experiences of how they have made the green switch by using EVs and why more people must do so.

==> picture [61 x 18] intentionally omitted <==

10/30/2023 16

KPIT – Societal Development Commitment

• KPIT SPARKLE (Engg. Innovation)

• • SHODH (PhD researchers)(PhD researchers)

• • Chotte Scientists (School Children)

• Water Conservation

==> picture [776 x 348] intentionally omitted <==

----- Start of picture text -----

• •
Forest Conservation SHODH (PhD researchers)(PhD researchers)
•
ENVIRONMENT EDUCATION
Transforming lives of
Making this world a
people through science &
better place to live in
technology education
KPIT SOCIETAL
DEVELOPMENT
Developing innovative COMMITMENT
Utilizing employee
solutions for efficient
strength to make a
energy consumption difference
and renewable supply
ENERGY ENGAGEMENT
• •
Alternate Energy Dedicated Time
• •
Renewable Energy Volunteer Development
•
COVID Warriors
----- End of picture text -----

KPIT is a Socially Responsible Corporate Citizen in each country it works

==> picture [61 x 18] intentionally omitted <==

10/30/2023 17

==> picture [148 x 47] intentionally omitted <==

• 1 March 2021

Financial & Operational Data

Snapshot Reimagining Mobility with YOU

INR MN

Profit & Loss Account Snapshot

	DETAILS	Q2FY24	Q1FY24	Q2FY23
	Revenue from Operations	11,991.57	10,976.22	7,448.32
	Other Income	85.94	78.16	94.90
	Gains on Account of Business Combinations	-	134.13	-
	Total Income	12,077.51	11,188.51	7,543.22
	OperatingExpenses	9,592.23	8,837.42	6,066.69
	EBITDA	2,399.34	2,200.12	1,381.63
	Depreciation	480.93	450.44	327.41
	EBIT	1,918.41	1,749.68	1,054.22
	Finance Costs	135.70	137.10	70.31
	Change in FMV of Investments	8.72	2.79	(1.92)
	Profit Before Exceptional Items	1,877.37	1,766.34	1,076.89
	Exceptional items	-	-	-
	Profit/(loss)from equityaccounted investee	-	-	14.36
	PBT	1,877.37	1,766.34	1,091.25
	Tax	463.36	421.95	255.60
	PAT	1,414.01	1,344.39	835.65
	Profit Attributable to owners of Company	1,408.54	1,339.98	834.80
	Profit Attributable to non-controllinginterest	5.47	4.41	0.85

==> picture [61 x 18] intentionally omitted <==

10/30/2023

19

INR MN

Balance Sheet Snapshot

ASSETS	Q2FY24	Q1FY24		EQUITY & LIABILITIES	Q2FY24	Q1FY24
NON-CURRENT ASSETS				EquityShare Capital	2,710.13	2,706.02
Property, Plant & Equipment	2,174.94	2,141.45		Other Equity Equityattributable to owners	15,862.06 18,572.19	15,333.75 18,039.77
Right-of-use Assets	2,818.33	2,849.68		Non-controllinginterests	131.20	123.19
Other Tangible Assets	42.18	83.16		TOTAL EQUITY	18,703.39	18,162.96
Goodwill & Other Intangibles	14,211.21	14,293.06		NON-CURRENT LIABILITIES
Other Non-Current Assets TOTAL NON-CURRENT	1,287.73 20,534.39	1,308.65 20,676.0		Borrowings Lease Liabilities Other Non-Current Liabilities	NIL 2,054.93 2,827.00	NIL 2,090.72 2,818.71
CURRENT ASSETS				TOTAL NON-CURRENT	4,881.93	4,909.43
Inventories	890.50	863.85		CURRENT LIABILITIES
Cash and Cash Equivalents	6,275.16	5,726.93		Borrowings	1,151.21	465.27
				Trade Payables	2,491.95	2,300.33
Trade Receivables	6,926.29	6,026.95
				Lease Liabilities	549.90	546.06
Other Current Assets TOTAL CURRENT	2,819.66 16,911.61	3,211.16 15,828.89		Others TOTAL CURRENT	9,667.62 13,860.68	10,120.84 13,432.50
TOTAL ASSETS	37,446.00	36,504.89		TOTAL EQUITY AND LIABILITIES	37,446.00	36,504.89

==> picture [61 x 18] intentionally omitted <==

10/30/2023 20

USD MN

Revenue Break-up

Verticals*	Q2FY24	Q1FY24	Q2FY23	Q-o-Q	Y-o-Y
Passenger Cars	110.07	100.53	69.30	9.5%	58.8%
Commercial Vehicles	29.06	28.78	23.75	1.0%	22.4%

• The balance revenues come from others, which is not a big area as of now

Business Units#	Q2FY24	Q1FY24	Q2FY23	Q-o-Q	Y-o-Y
Feature Development & Integration	89.72	82.14	64.86	9.2%	38.3%
Architecture & Middleware Consulting	29.40	28.03	12.04	4.9%	144.2%
Cloud Based Connected Services	26.08	23.77	17.26	9.7%	51.1%

• Feature Development & Integration - Electrification, AD-ADAS, Body Electronics and VED Architecture & Middleware Consulting – Middleware, AUTOSAR

Cloud Based Connected Services – Intelligent Cockpit, Digital Connected Solutions and Diagnostics

Geography	Q2FY24	Q1FY24	Q2FY23	Q-o-Q	Y-o-Y
US	44.15	44.91	34.81	(1.7)%	26.8%
Europe	76.37	68.08	41.11	12.2%	85.8%
Asia	24.69	20.96	18.24	17.8%	35.4%

==> picture [61 x 18] intentionally omitted <==

10/30/2023

21

P&L Metrics

&L Metrics
Q2FY24 Q1FY24 Revenue by Contract Type Time & Material Basis 48.6% 55.0% Fixed Price Basis 51.4% 45.0% Clients Strategic Client Revenue 84.0% 82.6% Active Clients (Period End) 60 60 Revenue per Devp. Employee USD 51,773 49,439	Q2FY24	Q1FY24	Q2FY23	Q-o-Q	Y-o-Y
	48.6%	55.0%	53.5%	(4.2)%	40.1%
	51.4%	45.0%	46.5%	23.8%	70.5%
	84.0%	82.6%	85.4%	10.3%	51.7%
	60	60	60
			40,569 2.23 18.5% 14.2% 11.2% 23.4% 3.09 3.06
R&D Expenditure (USD MN)	3.31 3.01
EBITDA Margin	20.0% 20.0%
EBIT Margin	16.0% 15.9%
PAT Margin	11.7% 12.2%
Effective Tax Rate	24.7% 23.9%
EPS (Basic)	5.20 4.95
EPS (Diluted)	5.16 4.91

==> picture [61 x 18] intentionally omitted <==

10/30/2023

22

Currency wise revenues, Hedging Details

==> picture [468 x 54] intentionally omitted <==

----- Start of picture text -----

Currency wise
Q2FY24 Q1FY24 Q2FY23
revenue
----- End of picture text -----

Currency wise revenue	Q2FY24	Q1FY24	Q2FY23
USD	31.1%	34.0%	41.1%
EUR	44.8%	44.5%	35.4%
GBP	7.1%	6.0%	8.1%
JPY	11.4%	10.5%	6.9%
INR	3.8%	3.5%	5.9%
Others	1.9%	1.5%	2.6%

O/s Hedge Details	Q2FY24
Hedge Rates
USD/INR	83.42
EUR/INR	92.00
GBP/INR	105.24
JPY/INR	0.63
Hedge Amounts(Mn)
USD/INR	51.65
EUR/INR	25.85
GBP/INR	6.66
JPY/INR	1,415.00

==> picture [61 x 18] intentionally omitted <==

10/30/2023

23

Headcount Data

Period End Headcount	Q2FY24	Q1FY24	Q2FY23	Q-o-Q	Y-o-Y
Development	11,219	10,837	9,284	-	-
Enabling & Sales	752	734	632	-	-
Total	11,971	11,571	9,916	-	-

==> picture [61 x 18] intentionally omitted <==

10/30/2023

24

==> picture [148 x 47] intentionally omitted <==

• 1 March 2021

Contact Us

Reimagining Mobility with YOU

Conference Call Details

Conference name : KPIT Technologies Q2 FY2024 Post Earnings Conference Call Date : Tuesday October 31, 2023 Time : 1600 Hrs. Participants : Mr. Kishor Patil, Co-founder, CEO & MD Mr. Sachin Tikekar, President, Joint MD Mr. Anup Sable, Whole-time Director & CTO Mr. Chinmay Pandit, Whole-time Director & Head Americas Mrs. Priya Hardikar, CFO Mr. Sunil Phansalkar, Head-IR Dial-in Numbers for all participants : +91 22 6280 1116 Primary number : +91 22 7115 8017 Local Access International Numbers Click here for your Diamond Pass

: +91 22 6280 1116 Primary number : +91 22 7115 8017 Local Access 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), KPIT is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. With 11,000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables clients accelerate implementation of next generation mobility technologies. With development centers in Europe, USA, Japan, China, Thailand and India – KPIT works with leaders in mobility and is present where the ecosystem is transforming. 25

==> picture [61 x 18] intentionally omitted <==

26

For more information, visit http://www.kpit.com

Contact

For Investor Queries

==> picture [76 x 300] intentionally omitted <==

Email Sunil.Phansalkar@kpit.com

Desk Phone + 91 20 6770 6997

Cell + 91 98509 66011

Website www.kpit.com

Sunil Phansalkar

27

Contact

For Media Queries

==> picture [76 x 300] intentionally omitted <==

Email Sunil.R@kpit.com

Desk Phone + 91 80 6606 6000 (7865)

Cell + 91 99001 50180

Website www.kpit.com

Sunil B R

28

==> picture [131 x 41] intentionally omitted <==

THANK YOU !!

KPIT Technologies Ltd.

==> picture [642 x 540] intentionally omitted <==