KPIT Q1 net profit rises 39% to Rs 77 cr
IT firm KPIT today said its net profit grew 39.6 per cent to Rs 77.43 crore in the first quarter ended June 30.
It had reported a net profit of Rs 55.45 crore in the year- ago period, KPIT said in a statement.
The company's sales increased 16.4 per cent to Rs 1,013.84 crore in the reported period from Rs 870.36 crore in the same quarter a year ago, it added.
"We continue to focus on improving profitability and growth. We improved our operational margins by 50 basis points during the quarter. We are on track with respect to the milestones on the proposed merger and then demerger of IT and Automotive Engineering businesses," KPIT co-founder, CEO and MD Kishor Patil said.
The statement said the growth during the quarter was led by the services business viz engineering, digital technologies and Oracle.
The products business is still in a nascent stage and hence, will witness quarterly fluctuations, it added.
The company said it had incurred around Rs 10.8 crore as expenses towards the merger-demerger transaction during the quarter.
Earlier in the year, the company had announced a merger-demerger transaction, involving KPIT and Birlasoft. The merger of KPIT and Birlasoft will create an over USD 700 million entity that will be demerged into two separate companies.
"We are progressing well on the regulatory front as per the anticipated timelines. We received the approval from the Competition Commission of India (CCI) and filed the scheme with the National Company Law Tribunal (NCLT), Mumbai Bench, for their approval," KPIT said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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