KPIT Technologies Ltd — Interim / Quarterly Report 2020

May 27, 2020

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KP 11·

May 27, 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

Subject: Investor release for Q4 FY 2020.

Dear Sir / Madam,

Please find enclosed the investor release for Q4 FY 2020.

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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May 27, 2020 Investor Update Q4FY20 & FY20 KPIT Technologies Ltd.

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1

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

• FY20 and Q4FY20

3

FY20 Performance Overview

KPIT registers Comparable Constant Currency growth of 14.5% in FY20 over FY19

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Reported USD revenues grow 14.2% on a comparable basis in FY20 over FY19

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EBITDA for FY20 stood at 13.7%

Net Profit for FY20 stood at ₹ 1,466 Million, EPS at ₹ 5.4

Net Cash as at FY20 end stood at ₹ 3,278 Million

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Q4FY20 Performance Overview

KPIT Q4FY20 Net Profit registers a 23.2% growth Y-o-Y

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Q4FY20 Y-o-Y comparable revenue growth of 11.5% in CC terms

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Q4FY20 Y-o-Y reported revenue growth of 8.3%

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Q4FY20 EBITDA at 13.5%

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Net revenue loss of around 1.5% due to Covid-19 disruption during the quarter

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Q4FY20 and FY20 additional facts

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

Qtr End Net Cash ₹ M Qtr End DSO Revenue $ M
3,278
87 76.88 76.94
2,584
64 66
71.05
900
Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20
----- End of picture text -----

11.5% 13.7% FY19 FY20 Annual EBITDA %
	FY20 Reported Revenue ($ M)	303.81
	FY20 Reported EBITDA (₹ M)	2,953.61
	FY20 Reported PAT (₹ M)	1,465.90

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Management Quotes

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Commenting on the performance of FY20, Ravi Pandit, Co-founder and Chairman, KPIT said,” FY20 was the first full year after demerger and we are happy to report industry leading comparable organic growth of 14%+ in FY20. FY20 has been a of further of focus and While the year sharpening energies. world is undergoing major changes due to Covid pandemic, I am confident of KPIT a role in the new performing prominent global mobility ecosystem”.

Kishor Patil, Co-founder, CEO and MD, KPIT said,” We experienced good traction in strategic accounts, which have cumulatively grown by ~20% in FY20. We have a strong Balance Sheet and have consistently built on our cash reserves. While Covid-19 will have a negative impact on business in H1FY21, we are now constructive discussions with our clients and have won some having sizable new deals, the benefit of which will start flowing in H2FY21.”.

Sachin Tikekar, President and Whole-time Director, KPIT said, ” At KPIT, the safety of our employees and deliverables to our clients are of prime importance to us. Our cross-functional teams have done a tremendous job to enable 98%+ work from home for our employees globally, without any disruption. We continue to engage with our clients in a deeper way to create more value for them”.

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Cash Flow – Major Movement

INR Mln Cash Profit – 665 Decrease in Working Capital – 512 Capex – 380 Loans repaid – 21 Dividend - 325 Cash and Cash Equivalents INR break-up Million In Investment Accounts 1,437 In Operating Accounts 2,383 TOTAL 3,820

	NET CASH (INR Mln) Q4FY20 Q3FY20 Gross Cash 3,820 3,117 Long Term Debt 376 533 Short Term Debt 166 NIL NET CASH 3,278 2,584 Q-o-Q Increase in Net Cash of INR 694 Million FCF/EBITDA – 100% Net Cash/MCap – 28%	Q-o-Q Increase in Net Cash of INR 694 Million

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FCF = Cash Flow from Operations minus capex and excludes cash received on sale of Birlasoft Shares by Employee Welfare Trust

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Movement in Profit – Q3FY20 to Q4FY20

Q3 FY20 PAT	Rupee depreciation	Finance Cost & Depreciation	MI & non-operating costs		Tax	Q4 FY20 PAT

• Operational EBITDA flattish QoQ

• Rupee depreciation positive impact of 0.3%

▪ Reduction in PAT due to onetime Tax credit (Q3FY20) and delta in non-operating costs

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Significant Deal Win

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KPIT wins multi-million-dollar deal from a strategic leading Automotive Tier 1 for a European Automaker’s electrification program.

The in excess of 5 and deal value engagement pans years is estimated at USD 50+ million.

KPIT will set a dedicated software center up competence in Munich and India. This software strategic program spans across development, integration and software maintenance start of . post production

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Other Major Deal Wins

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

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A leading US Car Manufacturer selected KPIT for a project in AUTOSAR domain

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A leading US Tier I Supplier selected KPIT for a project in the electric powertrain area

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

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

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Important Updates

Re-classification of KPIT Promoters from Promoters to public shareholders in Birlasoft Re-classification of Birlasoft Promoters from Promoters to public shareholders in KPIT

We have initiated both the mentioned above and would seek shareholder and other processes for the same. statutory approvals required achieving

Resignation of Vinit Teredesai, CFO and Key Management Personnel (KMP)

The Board of Directors in its meeting today, accepted the resignation of Vinit Teredesai as CFO and KMP. Vinit will continue in his current role till early June 2020. Mrs. Priyamvada Hardikar, will take over as Sr. Vice President, Head of Finance and KMP.

In tendering his resignation, Vinit said ,” I am grateful to the Board and Management of KPIT for providing me the opportunity to work in this wonderful organization. As I pursue a different career opportunity, I wish the whole KPIT family a great future. I am sure KPIT will continue to prosper as a global leader in engineering for the Mobility ecosystem”.

Kishor Patil, CEO and MD , said,” I thank Vinit for his admirable contribution to KPIT, especially in the crucial execution of the complex merger-demerger and discipline in cash conversion. I wish him success in his future endeavors. I also wish success to Priya, who has successfully steered the accounting, taxation, auditing and treasury functions in KPIT, over the last 10+ years. ”.

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1

2

3

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KPIT Promoters pledged shares - update

Proficient and Kishor Patil purchased shares of KPIT from Birlasoft Promoters for which they respectively raised funds.

As of date, Proficient has repaid all its loans and its shares are completely free. Proficient owns 32.4% of the total outstanding shares of KPIT

Shares of Kishor Patil are not the primary security for the above-mentioned loan. The loan is planned to be fully repaid within 2 years from now

Thus as of today, only 17% of KPIT Promoter shareholding is pledged

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Covid-19 Updates

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Covid-19 Update – Our Actions

RAPID RESPONSE TASKFORCE

Cross functional team comprising of Senior Management, Project Teams, Facilities & Infra, IT Support, Security, HR and Marketing

CLIENT COMMUNICATION

Proactive, regular, transparent communications with clients to drive change in mindset for changing the norms and set processes while ensuring BCP

Business Continuity Planning (BCP)

EMPLOYEE COMMUNICATION

Periodic and concise communication for building trust, care for personal hygiene, health and well being PHYSICAL & TECHNICAL INFRA Stable technical infrastructure, availability of systems, connectivity, hardware, Taking care of Information security

PHYSICAL & TECHNICAL INFRA

RAPID ADAPTATION

CHANGES IN MINDSET

Review set policies, norms and processes. Working with clients on required quick change in mindset, approvals & enablement

Exploring new ways and tools for digital delivery

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Covid-19 Update – Work From Home Timeline

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

100% 95% 97% 98%
•
Ensuring client approvals –
90% change in mindset against set
•
norms - 95% of projects Only < 5% mission
critical & essential
smoothly enabled WFH
80% • With the increase in cases in services continue to
other parts of the world, travel work from office
70% advisory, personal hygiene and •
Operations started
other social distancing
getting back to
60% measures implemented across normal in China
global offices
• BCP activated &
50%
project wise WFH
initiated in India.
40% • Widespread in China & Japan
• Operations slowed down in • WFH initiated for
•
Rapid Implementation
30% China & parts of Japan. WFH non-critical 25%
of digital techniques
issued in these regions functions initiated
to further increase
20% in Europe & US 15% WFH to 98%+
7%
10%
2% 2%
0%
0%
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FY21 Outlook

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We are cautious about FY21 owing to uncertainty due to the current disruption and possibility of a relapse of the pandemic globally. Hence, we refrain from giving any outlook for FY21 at this juncture. H1FY21 revenues will be impacted and significant effect will be in Q1FY21. New deal wins benefit will be seen from H2FY21. We expect the current disruption in Automotive industry to create new opportunities in the medium term.

Conserve Cash, Improve Liquidity Further Current Focus Increase share of wallet in strategic accounts Areas Deliver and O erational Excellence y p

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Updates

18

Thought Leadership Updates

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Mr. Ravi Pandit appointed to the Board of Governors at AcSIR

The Honourable Prime Minister of India, Shri Narendra Modi, as the president of the Council of Scientific and Industrial Research (CSIR) has nominated Mr. Ravi Pandit as a member to the Board of Governance of the Academy of Scientific and Innovative Research

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Kishor Patil’s keynote address at NASSCOM e-Confluence

Mr. Patil spoke on the thrust on Execution Excellence. He elaborated by pointing out at the key areas : 1) Setting up a taskforce and building rigor, 2) Being flexible and nimble, 3) Collaboration, 4) Building milestonebased plans over time-based ones, 5) Building domain skills and competencies & 6) Cleaning up unnecessary processes.

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Other Updates

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Innovation in Retention Strategy Award

KPIT Shodh Awards

KPIT and Indian Institute of KPIT Technologies Limited was Science Education and Research awarded with Innovation in (IISER) Pune concluded the 2nd Retention Strategy award for Annual IISER Pune KPIT achieving and sustaining International Conference on industry leading retention by Energy & Mobility. This platform World HRD Congress in Mumbai. provides opportunity to PhD Our CEO, Kishor Patil was researchers across the nation to awarded “ CEO with HR present & recognize their Orientation” for transformative research work in the area of people initiatives and impact “Energy & Mobility

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Sparkle 2020

At Sparkle 2020, students & their faculties presented ideas & projects across Energy & future Mobility. More than 20,000 students from across 1,100+ colleges all over India participated. Team Detox from Army Institute of Technology, Pune won the Gold Award

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Financial and Operational Data

• Snapshot

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INR MN

Profit & Loss Account Snapshot

	DETAILS Q4FY20 Q3FY20 Q4FY19 FY20	DETAILS Q4FY20 Q3FY20 Q4FY19 FY20
	Revenue from Operations 5,562.28 5,500.92 5,012.68 21,561.69
	Other Income 76.79 101.79 36.39 283.17
	Total Income 5,639.07 5,602.71 5,049.07 21,844.86
	Operating Expenses 4,810.91 4,764.06 4,397.16 18,608.08
	EBITDA 751.37 736.86 639.30 2,953.61
	Depreciation 293.95 283.22 186.86 1,080.48
	EBIT 457.42 453.64 452.44 1,873.13
	Finance Costs 44.96 48.12 48.05 198.20
	Change in FMV of Investments 47.43 5.62 319.01 (56.92)
	Profit Before Exceptional Items 536.68 512.93 736.01 1,901.18
	Exceptional items (64.15) (31.2) (342.91) (95.09)
	PBT 472.53 481.73 393.1 1,806.09
	Tax 91.53 72.39 83.27 338.34
	PAT 381.0 409.34 309.83 1,467.75
	Profit Attributable to owners of company 371.36 428.53 301.49 1,465.90
	Profit Attributable to non-controlling interest 9.64 (19.19) 8.34 1.85

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INR MN

Balance Sheet Snapshot

ASSETS	Q4FY20	Q3FY20
NON-CURRENT ASSETS
Property, Plant & Equipment	2,128.87	2,140.08
Right-of-use Assets	1,627.62	1,427.97
Other Tangible Assets	51.70	48.43
Goodwill & Other Intangibles	1,507.85	1,579.20
Other Non-Current Assets	892.39	640.97
TOTAL NON-CURRENT	6,208.43	5,836.65
CURRENT ASSETS
Inventories	115.27	174.82
Cash and Cash Equivalents	3,820.53	3,116.88
Trade Receivables	4,486.77	4,731.30
Other Current Assets	1,719.62	1,944.07
TOTAL CURRENT	10,142.19	9,967.07
TOTAL ASSETS	16,350.62	15,803.72

EQUITY & LIABILITIES		Q4FY20	Q3FY20
EquityShare Capital		2,688.8	2,687.37
Other Equity		7,780.77	7.636.78
Equityattributable to owners		10,469.57	10,324.15
Non-controllinginterests		35.71	25.22
TOTAL EQUITY		10,505.28	10,349.37
NON-CURRENT LIABILITIES
Borrowings		-	178.07
Lease Liabilities		1,143.95	966.71
Other Non-Current Liabilities		150.67	252.81
TOTAL NON-CURRENT		1,294.62	1,397.59
CURRENT LIABILITIES
Borrowings		542.67	355.09
Trade Payables		846.74	1,080.64
Lease Liabilities		313.51	283.73
Others		2,847.80	2,692.39
TOTAL CURRENT		4,550.72	4,056.76
TOTAL EQUITY AND LIABILITIES		16,350.62	15,803.72

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USD MN

Revenue Break-up

	Geography	Q4FY20	Q3FY20	Q4FY19	Q-o-Q	Y-o-Y	Y-o-Y
	US	30.41	30.72	28.43	(1.0)%	7.0%
	Europe	31.91	31.44	23.81	1.5%	34.0%
	Asia	14.62	14.72	18.82	(0.7)%	*(22.3)%
	TOTAL	76.94	76.88	71.05	0.1%	8.3%
	Practices	Q4FY20	Q3FY20	Q4FY19	Q-o-Q	Y-o-Y 11.9% 45.1% (23.9)% (1.7)%
	Powertrain	25.01	25.02	22.35	0.0%	11.9%
	AD-ADAS	19.87	18.99	13.69	4.6%	45.1%
	Connected Vehicle	8.07	9.94	10.60	(18.8)%	(23.9)%
	Others	23.99	22.92	24.41	4.7%	(1.7)%

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• Comparable decline excluding products is 10%

P&L Metrics

	Q4FY20	Q3FY20	Q4FY19	Q-o-Q	Y-o-Y
Revenue by Contract Type
Time & Material Basis	48.6%	45.6%	52.0%	6.8%	1.2%
Fixed Price Basis	51.4%	54.4%	48.0%	(5.5)%	16.0%
Clients
Strategic T25 Accounts Revenue	82.61%	83.95%	76.40%	(1.5%)	17.1%
Active Clients	58	55
			45,091 12.8% 9.0% 6.0% 21.2% 1.12 1.12
Revenue per Devp. Employee USD 46,675 45,403
EBITDA Margin	13.5% 13.4%
EBIT Margin	8.2% 8.2%
PAT Margin	6.7% 7.8%
Effective Tax Rate	19.4% 15.0%
EPS (Basic)	1.38 1.59
EPS (Diluted)	1.38 1.59

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Currency wise revenues, Hedging Details

Currency wise revenue	Q4FY20	Q3FY20	Q4FY19	FY20
USD	41.2%	41.4%	43.1%	42.5%
EUR	32.7%	33.5%	23.0%	30.9%
GBP	8.1%	6.7%	9.4%	7.4%
JPY	9.6%	10.9%	13.8%	10.8%
INR	5.9%	4.9%	7.6%	5.6%
Others	2.7%	2.7%	3.1%	2.8%
Realized Rate Q4FY20 Q3FY20 Q4FY19 INR/USD 72.29 71.55 70.55
Realized Rate Q4FY20 Q3FY20 Q4FY19
INR/USD 72.29 71.55 70.55

Hedge Details	Q4FY20
Hedge Rates
USD/INR	73.30
EUR/INR	82.90
GBP/INR	95.0
Hedge Amounts(Mn)
USD/INR	19.55
EUR/INR	6.0
GBP/INR	5.15

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Headcount Data

Period End Headcount	Q4FY20	Q3FY20	Q4FY19	Q-o-Q	Y-o-Y
Development	6,594	6,773	6,303	-	-
Enabling & Sales	531	530	311	-	-
Total	7,125	7,303	6,614	-	-

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Contact us

• Contact

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Conference Call Details - TBU

Conference name : KPIT Technologies Q4 FY2020 Post Earnings Conference Call Date : Thursday May 28, 2020 Time : 1600 Hrs. Participants : Mr. S.B. (Ravi) Pandit, Co-founder & Chairman Mr. Kishor Patil, Co-founder, CEO & MD Mr. Sachin Tikekar, President & Board Member Mr. Vinit Teredesai, CFO Mrs. Priya Hardikar, SVP & Head of Finance Mr. Sunil Phansalkar, AVP & 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, 29visit 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

5/27/2023 0

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

5/27/202031

Thank You

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