KPIT Technologies Ltd — Interim / Quarterly Report 2024

Jul 25, 2023

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July 25, 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

Symbol: KPITTECH Series: EQ

Kind Attn: The Manager, Department of Corporate Services

Kind Attn: The Manager, Listing Department

- Subject: Investor Update – Q1 FY 2024.

Dear Sir / Madam,

Please find enclosed the investor Update – Q1 FY 2024.

Kindly take the same on your records.

Thanking you.

Yours faithfully,

For KPIT Technologies Limited

Digitally signed by DESHPANDE DESHPANDE NIDA YUNUS NIDA YUNUS Date: 2023.07.25 11:56:13 +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

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Reimagining Mobility with YOU

July 25, 2023 Investor Update Q1FY24

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.

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• 1 March 2021

Performance Overview

Q1FY24

Reimagining Mobility with YOU

Performance Overview

1 M Reported $ Revenue growth of 49% Y-o-Y 1 Revenue 7.1% CC growth, 8.2% Reported $ growth, Q-o-Q

Q1FY24 CC Revenue grows 51.7% Y-o-Y Q1FY24 Profit (PAT) grows 56.9% Y-o-Y

Q1FY24 Net Profit at ₹ 1,340* M 20.1% Q-o-Q growth in Net Profit

2 Net Profit

Q1FY24 EBITDA at 20% 3 EBITDA Y-o-Y EBITDA growth of 65.2%, Q-o-Q 13.3% Wins and $ 190M worth engagements closed in the quarter 4 Pipeline Healthy Pipeline level across practices

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• *In line with IND AS 103, a one-time gain of ₹ 134 M resulting from remeasuring of earlier FMS equity stake at the acquisition date FMV has been taken in Q1FY24, excluding which PAT is ₹ 1,206 M

Performance Highlights

Growth led by Strategic Accounts, Middleware and Architecture, Electric Powertrain and Connected Vehicles. 01 Balance 75% stake in FMS acquired during the quarter. FMS contributed USD 1.7 M to revenue during the quarter

EBITDA margin expansion of 90 bps for the quarter led by 02 revenue growth resulting in fixed costs leverage and operational efficiencies.

Impact of Purchase Price Allocation (FMS acquisition) of ₹ 11.4 M reflected in Depreciation. One time gain of ₹ 134 M accounted for in the quarter, resulting from remeasuring of earlier FMS equity stake, at acquisition date FMV. 03 Q1FY24 other income was higher as compared to last quarter due to lower loss on realization and ₹ depreciation against the Euro & GBP. ETR increased Q-o-Q due to absence of one-time tax credits reported last quarter. Net Cash at quarter end stood at ₹ 5.26 billion post ₹ 04 Acquisition payouts of 2,429 million (Technica, FMS and Somit). DSO stood at 50 days.

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Additional facts - timeseries

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Revenue $ M
133.9
123.8
110.5
[89.9][ 94.2]
[87.1]
71.1 [72.8] [77.2] [76.9][ 76.9] [77.2][ 80.4 83.7]
65.3 65.3 [69.7 74.5]
EBITDA ₹ M
2,200
1,943
1,699
[931] [981] [1,0411,1501,2141,3321,382]
639 [739] [727] [737] [751] 662 [697] [811]
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Consistent Performance

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12 Consecutive Quarters of Steady Revenue Growth

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12 Consecutive Quarters of Steady EBITDA Growth

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Management Quotes

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Kishor Patil, Co-founder, CEO and MD, KPIT said,” . We have started the year on a positive note and have delivered a robust all-round performance in line with our expectations of a stronger first half. Opportunities remain stronger as mobility players continue to invest in new technologies, in the areas of electrification, vehicle autonomy, connectivity and personalization. We have a healthy pipeline and are slightly ahead in the ramp up of the mega strategic engagements announced last year. This gives us a fair medium-term visibility and we are confident of reaching our stated outlook of revenue growth and operating margins for FY2024”.

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Sachin Tikekar, Co-founder and Joint MD, KPIT said, ” We are experiencing greater traction with our strategic clients as we move further in creating trusted partnerships with our clients to help them accelerate their transformation. The attrition has been consistently falling over the last 3 quarters. We are investing in improving the quality of hires and building the right competencies and technologies to enable flawless execution. We have started baselining sustainability and co-creating a roadmap with our employees and look forward to scaling our impact in creating a cleaner, smarter, safer world in the years to come through our offerings, operations, and employees.”.

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Cash Flow – Major Movement

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₹ M
Increase in Working
Capital – 1,695
Technica Payout – 1,784
FMS Payout - 624
SOMIT Payout - 21
Capex – 465
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Cash and Cash Equivalents break-up ₹ M In Investment Accounts (in India) 1,070 In Investment Accounts (outside India) 887 In Operating Accounts 3,770 TOTAL 5,727

NET CASH (₹ M) Q1FY24 Q4FY23 Gross Cash 5,727 6,288 Long Term Debt NIL NIL Short Term Debt 465 486 NET CASH 5,262 5,802

DSO Q1FY24 end : 50 Days * Debt in the books of Technica which will be repaid over the next 4 quarters

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New Engagements

TCV of new engagements won during the Quarter : $ 190 million

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Multiple strategic engagements in autonomous driving, body electronics and diagnostics 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 middleware and architecture consulting and electric powertrain domains for a leading American Car Manufacturer

Multiple strategic programs in autonomous driving and body electronics domains for a leading European Car Manufacturer.

Various strategic engagements in the vehicle engineering and connected domains for a leading American Commercial Vehicle Manufacturer

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FY24 Outlook

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

CC Revenue growth in the range of 27% to 30%

EBITDA Margin in the 19% to 20%

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

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People

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

range

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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

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• 1 March 2021

Other Updates

Q1FY24

Reimagining Mobility with YOU

KPIT won the ET Energy Hydrogen Leadership Award

KPIT won the ET Energy Hydrogen Leadership Award - a category that recognizes an organization that has demonstrated outstanding efforts in advancing the use of Hydrogen as a clean and sustainable source.

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7/25/2023 12

KPIT leaders featured on popular media outlets

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KPIT Co-founder and Chairman, Mr. Ravi Pandit was invited as a distinguished speaker at the ETAuto Tech Summit 2023 held in Bangalore. His presentation centered on the Hardware and Software Technology Trends in the Mobility Industry.

KPIT Co-founder, Managing Director, and

• CEO, Mr. Kishor Patil spoke to Automobilwoche, one of Germany's prominent automotive industry

• newspapers . In this interview, he talks about the

• importance of KPIT's strategic partnerships, talent

• attraction and development, expanding footprint in Europe with Technica Engineering, partnership with ZF and more.

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Mr. Ravi Pandit has contributed a series of articles on Green Energy Technology which was published regularly on ET Auto.

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Activities from #LifeAtKPIT

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KPIT partnered with Maharshi Karve Stree Shikshan Sanstha (MKSSS) Pune , to empower women from economically weaker sections of society.

KPIT US office was filled with the energy of little ones as we celebrated 'Bring Your Kids to Work Day'!

We loved having our colleagues' children visit us and showed them what we work on every day.

We celebrated #MothersReimaginingMobilit y on the occassion of Mother's Day.

During this week-long campaign, we covered stories featuring mothers across KPIT offices globally in which they shared how they get to work on cuttingedge technologies and also excel beyond their life at work.

This program was started in 2021 to support families who lost their livelihoods during the COVID-19 pandemic. A total of 245 women have completed the courses. This year, a larger group of 285 women from different parts of the city have completed the training.

Priya M. Hardikar, Member of the Executive Board & CFO, and Avinash Badave, AVP-Global Delivery Head-VED Practice, visited the training center and presented certificates to these women. Additionally, Avinash Badave inaugurated another tailoring training center, which will train multiple batches of women

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KPIT – Societal Development Commitment

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• Water Conservation • KPIT SPARKLE (Engg. Innovation)
• Forest Conservation • SHODH (PhD researchers)
•
Chotte Scientists (School Children)
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
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KPIT is a Socially Responsible Corporate Citizen in each country it works

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• 1 March 2021

Financial & Operational Data

Snapshot

Reimagining Mobility with YOU

INR MN

Profit & Loss Account Snapshot

DETAILS	Q1FY24 Q4FY23 Q1FY23	Q1FY24 Q4FY23 Q1FY23	Q1FY24 Q4FY23 Q1FY23
Revenue from Operations	10,976.22 10,173.67 6,857.24		This includes forex loss of INR 61.32 million
Other Income	78.16 62.60 152.89
Gain on account of Business Combinations	134.13 - -
Total Income	11,188.51 10,236.27 7,010.13
OperatingExpenses	8,837.42	8,350.16 5,525.51
EBITDA	2,200.12 1,942.57 1,331.73
Depreciation	450.44 422.10 310.23
EBIT	1,749.68 1,520.47 1,021.50
Finance Costs	137.10 106.57 63.43
Change in FMV of Investments	2.79 (0.51) 6.12
Profit Before Exceptional Items	1,766.34 1,356.93 1,117.08
Profit/(loss)from equityaccounted investee	- 5.10 3.77
PBT	1,766.34 1,362.03 1,120.85
Tax	421.95 246.21 244.26
PAT	1,344.39 1,115.82 876.59
Profit Attributable to owners of Company*	1,339.98 1,116.00 854.28
Profit Attributable to non-controllinginterest	4.41 (0.18) 22.31

This includes forex loss of INR 61.32 million

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*In line with IND AS 103, a one-time gain of ₹ 134 M resulting from remeasuring of earlier FMS equity stake at the acquisition date FMV has been taken in Q1FY24, excluding which PAT is ₹ 1,206 M

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INR MN

Balance Sheet Snapshot

ASSETS	Q1FY24	Q4FY23		EQUITY & LIABILITIES	Q1FY24	Q4FY23
				EquityShare Capital	2,706.02	2,703.46
NON-CURRENT ASSETS
				Other Equity	15,333.75	13,811.92
Property, Plant & Equipment	2,141.45	2,143.89
				Equityattributable to owners	18,039.77	16,515.38
Right-of-use Assets	2,849.68	2,594.34
				Non-controllinginterests	123.19	117.56
Other Tangible Assets	83.16	56.43		TOTAL EQUITY	18,162.96	16,632.94
Goodwill & Other Intangibles	14,293.06	12,374.96		NON-CURRENT LIABILITIES
				Borrowings	NIL	NIL
Other Non-Current Assets	1,308.65	1,392.58
				Lease Liabilities	2,090.72	1,864.28
TOTAL NON-CURRENT	20,676.0	18,562.20
				Other Non-Current Liabilities	2,818.71	3,827.99
CURRENT ASSETS
				TOTAL NON-CURRENT	4,909.43	5,692.27
Inventories	863.85	587.50		CURRENT LIABILITIES
				Borrowings	465.27	486.03
Cash and Cash Equivalents	5,726.93	6,287.97
				Trade Payables	2,300.33	1,643.35
Trade Receivables	6,026.95	5,924.40
				Lease Liabilities	546.06	508.88
Other Current Assets	3,211.16	2,643.68
				Others	10,120.84	9,042.28
TOTAL CURRENT	15,828.89	15,443.55
				TOTAL CURRENT	13,432.50	11,680.54
TOTAL ASSETS	36,504.89	34,005.75
				TOTAL EQUITY AND LIABILITIES	36,504.89	34,005.75

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USD MN

Revenue Break-up

Verticals*	Q1FY24	Q4FY23	Q1FY23	Q-o-Q	Y-o-Y
Passenger Cars	100.53	92.14	66.95	9.1%	50.2%
Commercial Vehicles	28.78	30.75	22.38	(6.4)%	28.6%

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

Business Units#	Q1FY24	Q4FY23	Q1FY23	Q-o-Q	Y-o-Y
Feature Development & Integration	82.14	76.21	61.64	7.8%	33.3%
Architecture & Middleware Consulting	28.03	23.83	12.83	17.6%	118.5%
Cloud Based Connected Services	23.77	23.75	15.41	0.1%	54.2%

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	Q1FY24	Q4FY23	Q1FY23	Q-o-Q	Y-o-Y
US	44.91	44.66	34.95	0.5%	28.5%
Europe	68.08	61.40	35.89	10.9%	89.7%
Asia	20.96	17.74	19.04	18.1%	10.1%

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P&L Metrics

	Q1FY24	Q4FY23	Q1FY23	Q-o-Q	Y-o-Y
Revenue byContract Type
Time & Material Basis	55.0%	54.6%	51.0%	8.9%	60.6%
Fixed Price Basis	45.0%	45.4%	49.0%	7.4%	37.0%
Clients
Strategic Client Revenue	82.6%	79.5%	84.9%	12.4%	45.0%
Active Clients (Period End)	60	60	60
Revenue per Devp. Employee USD 49,439 48,092 41,951 R&D Expenditure (USD MN) 3.01 2.74 2.13 EBITDA Margin 20.0% 19.1% 19.4% EBIT Margin 15.9% 14.9% 14.9% PAT Margin 12.2% 11.0% 12.5% Effective Tax Rate 23.9% 18.1% 21.8% EPS(Basic) 4.95 4.13 3.16 EPS(Diluted) 4.91 4.09 3.13
R&D Expenditure (USD MN)
EBITDA Margin
EBIT Margin
PAT Margin
Effective Tax Rate
EPS(Basic)
EPS(Diluted)

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7/25/2023 20

Currency wise revenues, Hedging Details

Currency wise revenue USD	Q1FY24	Q4FY23	Q1FY23
	34.0%	36.3%	42.7%
EUR	44.5%	42.8%	33.5%
GBP	6.0%	6.3%	6.3%
JPY	10.5%	8.8%	8.7%
INR	3.5%	4.1%	5.8%
Others	1.5%	1.8%	2.9%

O/s Hedge Details	Q1FY24
Hedge Rates
USD/INR	83.13
EUR/INR	90.43
GBP/INR	103.08
JPY/INR	0.64
Hedge Amounts(Mn)
USD/INR	44.98
EUR/INR	25.35
GBP/INR	6.80
JPY/INR	1,955.0

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Headcount Data

Period End Headcount	Q1FY24	Q4FY23	Q1FY23	Q-o-Q	Y-o-Y
Development	10,837	10,297	8,570	-	-
Enabling & Sales	734	716	613	-	-
Total	11,571	11,013	9,183	-	-

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• 1 March 2021

Contact Us

Reimagining Mobility with YOU

Conference Call Details

Conference name : KPIT Technologies Q1 FY2024 Post Earnings Conference Call Date : Wednesday July 26, 2023 Time : 1600 Hrs. Participants : Mr. Kishor Patil, Co-founder, CEO & MD Mr. Sachin Tikekar, President, Joint MD 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[: USA - 1 866 746 2133 | UK - 0 808 101 1573] Click here for your Diamond Pass 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

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

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

25

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 !!

KPIT Technologies Ltd.

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