KPIT Technologies Ltd — Interim / Quarterly Report 2023

Jan 31, 2023

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

January 31, 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 – Q3 FY 2023.

Dear Sir / Madam,

Please find enclosed the investor Update – Q3 FY 2023.

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: 2023.01.31 19:14:54 +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 34] intentionally omitted <==

Reimagining Mobility with YOU

January 31, 2023

Investor Update Q3FY2023

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 <==

1/31/2023

2

==> picture [108 x 47] intentionally omitted <==

• 1 March 2021

Performance Overview

Q3FY23

Reimagining Mobility withYOU

Performance Overview

Q3FY23 CC Revenue grows 44.7% YoY, 19.3% QoQ

Q3FY23 revenue crosses $ 100M per quarter, at $ 110.5M

Q2FY23

Q3FY23 $ Revenue Growth of 31.9% Y-o-Y, 17.3% Q-o-Q 1 Revenue Organic CC Growth of 24.6% Y-o-Y and 4.9% Q-o-Q Q3FY23 Q3FY23 Net Profit at ₹ 1,005 M 2 N Net Profit growth of 43.5% Y-o-Y and 20.4% Q-o-QNet Profit

==> picture [98 x 139] intentionally omitted <==

==> picture [62 x 44] intentionally omitted <==

Q3FY23 Q3FY23 EBITDA at 18.5% 3 EBITDA EBITDA growth of 47.7% Y-o-Y and 22.9% Q-o-Q

Engagements On track to beat FY23 growth outlook 4 & Outlook TCV of $ 272 million won during the quarter

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

1/31/2023

4

Performance Highlights

Organic growth led by Middleware & Architecture Consulting and Passenger Car vertical. Full quarter consolidation of Technica during the quarter. This quarter 01 is seasonally the best quarter for Technica in terms of revenue and profitability.

EBITDA margins for the quarter flattish at 18.5% post impact of deal related and integration related expenses 02 during the quarter. Integration expenses will continue over the next 2 quarters. Technica operating margins in line ~ with expectations at 20%+

~ Higher other income to the tune of ₹ 90 million (₹ 185 M in Q3FY23 vs ₹ 95 M in Q2FY23) on account of translation 03 related foreign exchange gains resulting mainly from strong rupee depreciation against the Euro and GBP Net Cash at quarter end stood at ₹ 6.75 billion post related of Euro 60 Million which was Acquisition payout 04 done solely through internal accruals. DSO stood at 51 Interim Dividend of ₹ 1.45 share declared. days. per

04

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

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

1/31/2023

5

Additional facts - timeseries

Revenue $ M 110.5[94.2][89.9][87.1][83.7] 71.1[72.8][77.2][76.9][76.9][74.5][77.2][80.4] 65.3 65.3[69.7] EBITDA ₹ M 1,699 981[1,041][1,150][1,214][1,3321,382] 931 811[727][737][751] 639[739][662][697]

Consistent Performance

==> picture [74 x 405] intentionally omitted <==

10 Consecutive Quarters of Steady Revenue Growth

10 Consecutive Quarters of Steady EBITDA Growth

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

1/31/2023

6

Management Quotes

==> picture [155 x 174] intentionally omitted <==

Kishor Patil, Co-founder, CEO and MD, KPIT said,” KPIT’s focus over the last 20+ on the is in consistent and robust years Mobility Industry resulting growth medium-term visibility. Q3FY23 performance has been better than expectations. Our performance, coupled with healthy pipeline and demand driven by client investments in Software Defined Vehicles, gives us confidence of beating our FY23 growth outlook. We are pleased to have the Technica family on-board KPIT and contemplate scaling greater heights together. These are exciting times, and we look forward to a sustainable profitable growth in the medium term.”

==> picture [174 x 173] intentionally omitted <==

Sachin Tikekar, President and Joint MD, KPIT said, ” Our engagements with Strategic Clients are progressively becoming more pertinent and partnership oriented. We are committed to investments in new-age technologies, relevant to the Mobility Industry, to further strengthen our solutions for accelerating the transformation journey of our clients. Our attention is on ensuring successful of that are also critical to the success of our delivery large complex engagements, clients. The employee turnover has shown a declining trend over last 2 quarters. We expect this trend to stay, going forward. We continue to focus on attraction, development and retention of relevant talent, across the globe.”

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

1/31/2023

7

Cash Flow – Major Movement

==> picture [474 x 263] intentionally omitted <==

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

₹ M
Increase in Working
Capital – 2,206
Technica Payout – 4,800
Capex – 153
----- End of picture text -----

Cash and Cash Equivalents break-up ₹ M In Investment Accounts (in India) 2,210 In Investment Accounts (outside India) 859 In Operating Accounts 4,166 TOTAL 7,235

NET CASH (₹ M) Q3FY23 Q2FY23 Gross Cash 7,235 9,624 Long Term Debt NIL NIL Short Term Debt 493* NIL NET CASH 6,742 9,624

DSO Q3FY23 end : 51 Days * Debt in the books of Technica which will be repaid over the next 4 quarters

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

1/31/2023

8

New Engagements

TCV of new engagements won during the Quarter : $ 272* million

==> picture [85 x 352] intentionally omitted <==

Renault Group selected KPIT as a strategic technology partner for next generation Software-Defined Vehicle(SDV) program (already announced mid-quarter)

A leading European Car Manufacturer selected KPIT for a multiple engagements in the electric powertrain domain

A leading European Car Manufacturer awarded KPIT a strategic engagement in the connected vehicles domain

A leading American Commercial Vehicle Manufacturer selected KPIT for multiple engagements in the vehicle engineering design and diagnostics domains

A leading Asian Car Manufacturer selected KPIT for multiple strategic programs in the autonomous driving and connected vehicle domains

A leading American Car Manufacturer awarded KPIT multiple programs in the middleware, electric powertrain and connected vehicles domains

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

1/31/2023

9

• Includes $ 100 Million from Mega Engagement with Renault

==> picture [108 x 47] intentionally omitted <==

• 1 March 2021

Other Updates

Q3FY23

Reimagining Mobility withYOU

KPIT – Thought Leadership

==> picture [429 x 196] intentionally omitted <==

Unfolding Mobility at BQ Prime's FutureToday Summit

Future Today Summit, BQ Prime explores the potential of key sectors like mobility, defence manufacturing, energy and power generation as well as digital commerce.

On 14th October, Mr Ravi Pandit graced the stage to discuss how mobility is on the cusp of an industrydefining transformation. His talk also explored the shift towards software defined vehicles.

Exchanging Perspectives and Ideas on Software-Defined Vehicle and Future of Mobility at IZB, Germany

==> picture [444 x 250] intentionally omitted <==

KPIT was honored to have the opportunity to participate in the event to share our innovations with visitors from all over the world. Experts from KPIT, received overwhelming response from all, with powerful insights & new approaches to technology.

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

1/31/2023

11

KPIT – Celebrating 20 years of partnership !!

==> picture [734 x 319] intentionally omitted <==

KPIT and Cummins recently marked their 20th anniversary of partnership with celebrations at KPIT corporate office in Pune.

The evening was a memorable exchange of new ideas and thoughts, reflecting on the wonderful years of togetherness. In the last 20 years, KPIT has nurtured this relationship through technological innovation, engineering excellence, cross geography interactions & continuous learning and improvement. Together, we’re paving the way towards a safer, smarter & sustainable world. And now on to many more such 20 years!

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

1/31/2023

12

KPIT – Societal Development Commitment

==> picture [861 x 392] intentionally omitted <==

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

• 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
----- End of picture text -----

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

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

1/31/2023

13

KPIT – KPITians from USA are helping make the world cleaner and greener

Recently, a spirited group of 40 KPITians, supported by family, made a collective difference at Yates Park in Rochester Hills, MI and the nearby Yates Cider Mill and Nature Trail.

The KPIT CSR team organized river cleaning event in partnership with the Clinton River Watershed Council Novi, Michigan. The team managed to fished out 30 bags of trash from the trail and the riverbanks.

These KPITians made it clear that their concern for the planet stretches far beyond what we do at KPIT.

==> picture [548 x 309] intentionally omitted <==

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

1/31/2023 14

KPIT – Generous donations from KPIT Thailand Employees

The CSR team at KPIT Thailand organized a donation drive recently and received an overwhelming response form KPITians in Thailand.

All the collected items were donated to the Baan Nokkamin Foundation in Thailand.

Overall, through our campaign, the team supported more than 300 children under the care of the foundation and partly some donated items will be converted into scholarships for the children.

==> picture [561 x 298] intentionally omitted <==

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

1/31/2023 15

==> picture [108 x 47] intentionally omitted <==

• 1 March 2021

Financial & Operational Data

Snapshot

Reimagining Mobility withYOU

INR MN

Profit & Loss Account Snapshot

DETAILS	Q3FY23	Q2FY23	Q3FY22
Revenue from Operations	9,171.15	7,448.32	6,223.67
Other Income	210.59	94.90	80.75
Total Income	9,381.74	7,543.22	6,304.42
OperatingExpenses	7,472.50	6,066.69	5,073.92
EBITDA	1,698.65	1,381.63	1,149.75
Depreciation	404.05	327.41	311.57
EBIT	1,294.60	1,054.22	838.18
Finance Costs	82.82	70.31	44.83
Change in FMV of Investments	(29.37)	(1.92)	4.75
Profit Before Exceptional Items	1,393.0	1,076.89	878.85
Exceptional items	-	-	-
Profit/(loss)from equity accounted investee	0.74	14.36	(3.39)
PBT	1,393.74	1,091.25	875.46
Tax	353.17	255.60	172.37
PAT	1,040.57	835.65	703.09
Profit Attributable to owners of Company	1,004.90	834.80	700.10
Profit Attributable to non-controllinginterest	35.67	0.85	2.99

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

1/31/2023

17

INR MN

Balance Sheet Snapshot

ASSETS	Q3FY23	Q2FY23		EQUITY & LIABILITIES	Q3FY23	Q2FY23
NON-CURRENT ASSETS				EquityShare Capital	2,701.55	2,699.53
				Other Equity	12,775.53	11,219.79
Property, Plant & Equipment	2,104.68	1,933.64
				Equityattributable to owners	15,477.08	13,919.32
Right-of-use Assets	2,491.56	2,091.84
				Non-controlling interests	232.13	193.13
Other Tangible Assets	40.88	17.22
				TOTAL EQUITY	15,709.21	14,112.45
Goodwill & Other Intangibles	8,828.77	2,755.90		NON-CURRENT LIABILITIES
Other Non-Current Assets	1,500.08	1,484.50		Borrowings	NIL	NIL
				Lease Liabilities	1,800.74	1,483.22
TOTAL NON-CURRENT	14,965.97	8,283.10
				Other Non-Current Liabilities	1,233.02	1,182.67
CURRENT ASSETS
				TOTAL NON-CURRENT	3,033.76	2,665.89
Inventories	667.51	NIL
				CURRENT LIABILITIES
Cash and Cash Equivalents	7,235.42	9,624.20		Borrowings	493.43	NIL
Trade Receivables	6,262.91	3,982.13		Trade Payables	1,865.32	1,422.43
				Lease Liabilities	467.14	372.66
Other Current Assets	2,091.19	2,516.20
				Others	9,654.14	5,832.20
TOTAL CURRENT	16,257.03	16,122.53
				TOTAL CURRENT	12,480.03	7,627.29
TOTAL ASSETS	31,223.00	24,405.63
				TOTAL EQUITY AND LIABILITIES	31,223.00	24,405.63

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

1/31/2023

18

USD MN

Revenue Break-up

Verticals*	Q3FY23	Q2FY23	Q3FY22	Q-o-Q	Y-o-Y
Passenger Cars	86.00	69.30	61.42	24.1%	40.0%
Commercial Vehicles	23.49	23.75	20.40	(1.1)%	15.1%

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

Business Units#	Q3FY23	Q2FY23	Q3FY22	Q-o-Q	Y-o-Y
Feature Development & Integration	71.53	64.86	59.33	10.3%	20.6%
Architecture & Middleware Consulting	18.07	12.04	10.44	50.1%	73.0%
Cloud Based Connected Services	20.85	17.26	13.92	20.8%	49.8%

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	Q3FY23	Q2FY23	Q3FY22	Q-o-Q	Y-o-Y
US	35.39	34.81	30.43	1.7%	16.3%
Europe	56.96	41.11	35.12	38.6%	62.2%
Asia	18.10	18.24	18.14	(0.8)%	(0.2)%

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

1/31/2023

19

P&L Metrics

	Q3FY23	Q2FY23	Q3FY22	Q-o-Q	Y-o-Y
Revenue byContract Type
Time & Material Basis	51.0%	53.5%	43.5%	11.8%	54.7%
Fixed Price Basis	49.0%	46.5%	56.5%	23.6%	14.5%
Clients
Strategic Client Revenue	81.4%	85.4%	82.93%	10.7%	28.3%
Active Clients (Period End)	60	60	58
Revenue per Devp. Employee USD 45,105 40,569 46,365 R&D Expenditure (USD MN) 2.50 2.23 2.41 EBITDA Margin 18.5% 18.5% 18.5% EBIT Margin 14.1% 14.2% 13.5% PAT Margin 11.0% 11.2% 11.2% Effective Tax Rate 25.3% 23.4% 19.7% EPS(Basic) 3.72 3.09 2.60 EPS(Diluted) 3.68 3.06 2.56
R&D Expenditure (USD MN)
EBITDA Margin
EBIT Margin
PAT Margin
Effective Tax Rate
EPS(Basic)
EPS(Diluted)

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

1/31/2023

20

Currency wise revenues, Hedging Details

==> picture [467 x 54] intentionally omitted <==

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

Currency wise
Q3FY23 Q2FY23 Q3FY22
revenue
----- End of picture text -----

Currency wise revenue	Q3FY23	Q2FY23	Q3FY22
USD	35.0%	41.1%	37.8%
EUR	46.1%	35.4%	36.4%
GBP	5.6%	8.1%	5.0%
JPY	6.5%	6.9%	11.1%
INR	4.3%	5.9%	4.8%
Others	2.5%	2.6%	4.8%

O/s Hedge Details	Q3FY23
Hedge Rates
USD/INR	81.47
EUR/INR	86.77
GBP/INR	100.92
JPY/INR	0.62
Hedge Amounts(Mn)
USD/INR	44.25
EUR/INR	23.35
GBP/INR	5.65
JPY/INR	1,017

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

1/31/2023

21

Headcount Data

Period End Headcount	Q3FY23	Q2FY23	Q3FY22	Q-o-Q	Y-o-Y
Development	9,795	9.284	7,220	-	-
Enabling & Sales	695	632	606	-	-
Total	10,490	9,916	7,826	-	-

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

1/31/2023

22

==> picture [108 x 47] intentionally omitted <==

• 1 March 2021

Contact Us

Reimagining Mobility withYOU

Conference Call Details

Conference name : KPIT Technologies Q3 FY2023 Post Earnings Conference Call Date : Wednesday February 01, 2023 : 1700 Hrs. Time : Mr. Kishor Patil, Co-founder, CEO & MD Participants 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 : +91 22 6280 1116 Primary number Dial-in Numbers for all : +91 22 7115 8017 Local Access participants - - International Numbers : USA 1 866 746 2133 | UK 0 808 101 1573 Diamond Pass Registration - Singapore 800 101 2045 (choruscall.in) - 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 9,000+ 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 For more information, visit http://www.kpit.com

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

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

25

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

26

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

THANK YOU !!

KPIT Technologies Ltd.

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