KPIT Technologies Ltd — Interim / Quarterly Report 2024

Jan 30, 2024

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January 30, 2024

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 2024.

Dear Sir / Madam,

Please find enclosed the investor Update – Q3 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: 2024.01.30 12:03:09 +05'30' Nida Deshpande

Company Secretary & Compliance Officer

Encl.: - as above

O +91 20 6770 6000 E ~~Maan, Taluka-M~~ info@kpit.comulshi, W kpit.com kpit.com

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.comulshi, Hinjawadi, Pune-411057, India. W kpit.com kpit.com CIN: L74999PN2018PLC174192

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January 30, 2023

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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Performance Overview

Q3FY24

Reimagining Mobility with YOU

Performance Overview

• Q3FY24 Net Profit grows 55% Y-o-Y,

• Q3FY24 CC Revenue grows 31.5% Y-o-Y

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Revenue

Reported $ Revenue growth of 35.0% Y-o-Y. 4.3% CC growth, 2.7% Reported $ growth, Q-o-Q

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Wins and EBITDA PROFIT Pipeline Q3FY24 Q3FY24 Net $ 189M worth EBITDA at Profit at ₹ engagements 20.6%. Up 200 1,553M closed in the bps YoY. quarter Y-o-Y PAT Y-o-Y EBITDA growth of Healthy growth of across 54.6%, Q-o-Q Pipeline 52.2%, Q-o-Q 10.3% practices 7.7%

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Performance Highlights

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Sequential CC Growth of 4.3% led by Powertrain, Autonomous 01 and Connected domains. Growth was led by Passenger Vehicles in Europe & Asia. Cross currency impact due to higher mix of EURO, JPY and GBP revenues (~63% of total revenue) impacted Reported $ Revenue

02 EBITDA margin expanded to 20.6% (20% last qtr.) up ~200 bps Y-o-Y, post addition of ~600 freshers and quarterly promotions. Margin expansion led by improved productivity and operating leverage coupled with a better realized rate.

03[Q3FY24][PAT] grew 54.6% Y-o-Y. Other income was as to last due to on higher compared quarter gains hedging contracts. ETR was slightly higher as compared to last quarter, in-line with our annual outlook on ETR. Net Cash Balance at the end of the quarter stood at ₹ 8.29 04 billion, depicting a net cash addition of ₹ 3.1 billion. DSO at the end of the quarter stood at 46 Days.

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Additional facts - timeseries

Revenue $ Million

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[149]
[145]
124 [134]
110
94
87 90
84
71 73 77 77 77 70 74 77 80
65 65
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Consistent Performance

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14 Consecutive Quarters of Steady Revenue Growth

EBITDA ₹ Billion

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2.4 [2.6]
1.9 [2.2]
1.7
1.3 1.4
1.2 1.2
0.6 [0.7] [0.7] [0.7] [0.8] 0.7 [0.7] [0.8] [0.9] [1.0] 1.0
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14 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 continue to focus on execution and have been the benefits of our relentlessly consistently reaping focus on the mobility industry, key technologies, key clients and key talent. The Q3FY24 revenues have been in line with our expectations, while we have delivered ahead of on the front. Basis our so slightly expectations profitability performance far, robust pipeline and the consistency of demand driven by new technology investments by our strategic clients, we are confident of meeting our upward revised outlook for the year”.

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Sachin Tikekar, President and Joint MD, KPIT said, "We are witnessing broad based traction across technologies, clients, sub-verticals and geographies. We are increasing our strategic engagements in the quest to move towards being Trusted Partners for our strategic clients. As we have seen over the last 4 quarters, the attrition continues to fall and is now at historically low levels. We have significantly moved the needle in our quest for inclusive sustainability across KPIT. We have increased our investments in new technologies and competency development to enable us deliver complex engagements, successfully”.

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Cash Flow – Major Movement

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₹ M
Increase in Working
–
Capital 2,269
–
N-Dream Payout 271
–
PathPartner Payout 64
–
Capex 232
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Cash and Cash Equivalents break-up ₹ M In Investment Accounts (in India) 1,829 In Investment Accounts (outside India) 1,966 In Operating Accounts 4,941 TOTAL 8,736

NET CASH (₹ M) Q3FY24 Q2FY24 Gross Cash 8,736 6,275 Long Term Debt NIL NIL Short Term Debt 447 1,151 NET CASH 8,289 5,124

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DSO Q3FY24 end : 46 Days

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New Engagements

TCV of new engagements won during the Quarter : $ 189 million

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A Leading Asian Car Manufacturer selected KPIT for multiple engagements in the Autonomous Driving and Vehicle Engineering domains.

Strategic engagements in the System Engineering for Body electronics domains for a leading European Car Manufacturer.

Several strategic engagements in the E-Powertrain domain for leading European OEMs in partnership with a leading Tier-1.

in the domain for a Strategic engagement Autonomous Driving leading European Car Manufacturer.

in domain for a Several engagements Vehicle Engineering leading American Commercial Vehicle Manufacturer.

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Other Updates

Q3FY24

Reimagining Mobility with YOU

KPIT announced strategic investment in N-Dream AG, one of the early movers in the in-car casual gaming space

KPIT announced strategic investment in N-Dream AG , one of the early movers in the in-car gaming space. With N-Dreams' easyto-launch casual gaming platform AirConsole , and KPIT’s integration expertise, this collaboration enables OEMs to . transform experiences in the Cockpit of the Future

Families and friends will now enjoy their time while charging their cars, and the same experience can be seamlessly carried back into their homes.

Through these immersive in-cabin experiences, Automotive and mobility OEMs will be able to unlock new opportunities for consumer engagement and monetization, in their existing fleet of vehicles as well as in upcoming models.

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1/30/2024

KPIT unveiled breakthrough Sodium-ion battery technology to alleviate Lithium dependency

KPIT won the Digital Impact Awards (Silver) 2023

KPIT has recently achieved a significant milestone by being awarded Silver at the Digital Impact Awards .

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This recognition acknowledges KPIT’s outstanding performance in the category of " Best Use of Existing Social Media Platforms ."

KPIT has joined a small and elite group of sustainability-focused organizations worldwide that have developed sodium-ion-based battery technology.

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This indigenous battery technology’s cornerstone is utilizing earthabundant raw materials, thereby making electric mobility more affordable.

This marks another milestone towards sustainable mobility in line with KPIT vision.

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– KPIT Thought Leadership snippets

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KPIT Chief Technology
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KPIT Co-founder,
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KPIT Co-founder, Managing Director, and CEO, Mr. Kishor Patil spoke to ET Auto about KPIT’s autonomous driving programs, future opportunities, strong tech talent growth, and trends in SDV programs.

KPIT Chief Technology Officer and Board Member, Mr. Anup Sable’s interview was featured on Financial Express where he shares how automakers increasingly ask KPIT’s expertise and cuttingedge solutions to accelerate their SDV virtualization programs.

KPIT was at the ELIV - Electronics in Vehicles 2023 in Bonn, Germany

KPIT showcased how its accelerating the transformation towards software-defined vehicles and demonstrating how our cutting-edge work can make their validation strategy SDV ready.

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KPIT was proud to be at the Reuters Automotive USA Conference in Detroit as gold sponsor

Mr. Chinmay Pandit , Head KPIT Americas and Board Member, spoke on ‘ Success Factors for Realizing SDV: Are car makers ready for their biggest bet yet? '

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Activities from #LifeAtKPIT

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KPIT celebrated the third edition of
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KPIT celebrated the third edition of 'Awards of Excellence ' to recognize and honor teams who have made remarkable contributions to the organization and have shown exemplary performance in their respective fields.

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KPITians around the US came together for the Annual Picnic with their respective families where they also interacted with KPIT leadership team .

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KPITians in Columbus came
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KPITians in Columbus came together to teach the concept of Force & Motion to the students at W. D. Richards Elementary School as part of the Chhote (Junior) Scientists program.

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Financial & Data Operational

Snapshot Reimagining Mobility with YOU

INR MN

Profit & Loss Account Snapshot

DETAILS	Q3FY24	Q2FY24	Q3FY23
Revenue from Operations	12,569.62	11,991.57	9,171.15
Other Income	173.87	85.94	210.59
Total Income	12,743.49	12,077.51	9,381.74
OperatingExpenses	9,984.56	9,592.23	7,472.50
EBITDA	2,585.06	2,399.34	1,698.65
Depreciation	499.59	480.93	404.05
EBIT	2,085.47	1,918.41	1,294.60
Finance Costs	157.51	135.70	82.82
Change in FMV of Investments	14.04	8.72	(29.37)
Profit Before Exceptional Items	2,115.87	1,877.37	1,393.0
Exceptional items	-	-	-
Profit/(loss) from equity accounted investee	-	-	0.74
PBT	2,115.87	1,877.37	1,393.74
Tax	548.33	463.36	353.17
PAT	1,567.54	1,414.01	1,040.57
Profit Attributable to owners of Company	1,553.31	1,408.54	1,004.90
Profit Attributable to non-controlling interest	14.23	5.47	35.67

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INR MN

Balance Sheet Snapshot

ASSETS	Q3FY24	Q2FY24		EQUITY & LIABILITIES	Q3FY24	Q2FY24
NON-CURRENT ASSETS				Equity Share Capital	2,711.33	2,710.13
Property, Plant & Equipment Right-of-use Assets	2,224.30 2,934.29	2,174.94 2,818.33		Other Equity Equityattributable to owners Non-controllinginterests	17,750.58 20,461.91 145.53	15,862.06 18,572.19 131.20
Other Tangible Assets	87.43	42.18		TOTAL EQUITY	20,607.44	18,703.39
Goodwill & Other Intangibles	14,645.95	14,211.21		NON-CURRENT LIABILITIES
Other Non-Current Assets TOTAL NON-CURRENT	1,619.20 21,511.17	1,287.73 20,534.39		Borrowings Lease Liabilities Other Non-Current Liabilities	NIL 2,128.75 2,965.12	NIL 2,054.93 2,827.00
CURRENT ASSETS				TOTAL NON-CURRENT	5,093.87	4,881.93
Inventories	925.67	890.50		CURRENT LIABILITIES
Cash and Cash Equivalents	8,736.37	6,275.16		Borrowings	447.07	1,151.21
Trade Receivables	7,502.28	6,926.29		Trade Payables	2,450.32	2,491.95
				Lease Liabilities	604.18	549.90
Other Current Assets	1,790.94	2,819.66
TOTAL CURRENT	18,955.26	16,911.61		Others TOTAL CURRENT	11,263.55 14,765.12	9,667.62 13,860.68
TOTAL ASSETS	40,466.43	37,446.00		TOTAL EQUITY AND LIABILITIES	40,466.43	37,446.00

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USD MN

Revenue Break-up

Verticals*	Q3FY24	Q2FY24	Q3FY23	Q-o-Q	Y-o-Y
Passenger Cars	116.85	110.07	86.00	6.2%	35.9%
Commercial Vehicles	25.90	29.06	23.49	(10.9)%	10.3%

• The balance revenues comefromothers,whichis not a big areaas of now

Business Units#	Q3FY24	Q2FY24	Q3FY23	Q-o-Q	Y-o-Y
Feature Development & Integration	93.11	89.72	71.53	3.8%	30.2%
Architecture & Middleware Consulting	27.61	29.40	18.07	(6.1)%	52.8%
Cloud Based Connected Services	28.42	26.08	20.85	9.0%	36.3%

• FeatureDevelopment& Integration- Electrification, AD-ADAS, Body Electronicsand VED Architecture & Middleware Consulting – Middleware,AUTOSAR

CloudBasedConnectedServices – IntelligentCockpit,Digital Connected SolutionsandDiagnostics

Geography	Q3FY24	Q2FY24	Q3FY23	Q-o-Q	Y-o-Y
US	44.55	44.15	35.39	0.9%	25.9%
Europe	78.81	76.37	56.96	3.2%	38.4%
Asia	25.77	24.69	18.10	4.4%	42.4%

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P&L Metrics

&L Metrics
Q3FY24 Q2FY24 Q3FY23 Q-o-Q Y-o-Y Revenue by Contract Type Time & Material Basis 46.0% 48.6% 51.0% (2.8)% 21.8% Fixed Price Basis 54.0% 51.4% 49.0% 7.9% 48.8% Clients Strategic ClientRevenue 85.0% 84.0% 81.4% 3.9% 41.0% Active Clients (Period End) 60 60 60 Revenue per Devp. Employee USD 49,926 51,773 45,105 R&D Expenditure (USD MN) 3.51 3.31 2.50 EBITDA Margin 20.6% 20.0% 18.5% EBIT Margin 16.6% 16.0% 14.1% PAT Margin 12.4% 11.7% 11.0% Effective Tax Rate 25.9% 24.7% 25.3% EPS (Basic) 5.73 5.20 3.72 EPS (Diluted) 5.69 5.16 3.68	Q3FY24	Q2FY24	Q3FY23	Q-o-Q	Y-o-Y
	46.0%	48.6%	51.0%	(2.8)%	21.8%
	54.0%	51.4%	49.0%	7.9%	48.8%
	85.0%	84.0%	81.4%	3.9%	41.0%
	60	60	60
R&D Expenditure (USD MN)
EBITDA Margin
EBIT Margin
PAT Margin
Effective Tax Rate
EPS (Basic)
EPS (Diluted)

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Currency wise revenues, Hedging Details

Currency wise revenue USD	Q3FY24	Q2FY24	Q3FY23
	31.1%	31.1%	35.0%
EUR	45.9%	44.8%	46.1%
GBP	6.6%	7.1%	5.6%
JPY	10.6%	11.4%	6.5%
INR	3.3%	3.8%	4.3%
Others	2.5%	1.9%	2.5%

O/s Hedge Details	Q3FY24
Hedge Rates
USD/INR	83.95
EUR/INR	92.78
GBP/INR	105.47
JPY/INR	0.60
Hedge Amounts(Mn)
USD/INR	65.35
EUR/INR	34.92
GBP/INR	10.48
JPY/INR	3,175.00

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Headcount Data

Period End Headcount	Q3FY24	Q2FY24	Q3FY23	Q-o-Q	Y-o-Y
Development	11,949	11,219	9,795	-	-
Enabling & Sales	778	752	695	-	-
Total	12,727	11,971	10,490	-	-

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1/30/2024

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Contact Us

Reimagining Mobility with YOU

Conference Call Details

Conference Call Details	Conference Call Details	Conference Call Details
Conference name : KPIT Technologies Q3 FY2024 Post Earnings Conference Call
Date	: Tuesday January 30, 2024
Time	: 1730 Hrs.
Participants	: Mr. Kishor Patil, Co-founder, CEO & MD
	Mr. Sachin Tikekar, President, Joint MD
	Mrs. Priya Hardikar, CFO
	Mr. Anup Sable, CTO
	Mr. Sunil Phansalkar, Head-IR
Dial-in Numbers for	all participants
	Primary number	: +91 22 6280 1116
Local Access Click here for your Diamond Pass		: +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), 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

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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 !!

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KPIT Technologies Ltd.

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