KPIT Q4 FY20 Updates – Investometry

Reading Time: 3 minutes


Net cash- INR 3278 Millions

Revenue growth- 8.3% and 11.5% in cc terms Yoy

EBITDA- 13.5% compared to 11.5% in Q3

Net Revenue loss around 1.5% due to Covid disruption in this quarter.

DSO- 66 compared to 64 in Q3 20

Long term debt- INR 37.6 Cr

Short term debt- INR 16.6 Cr

Financial Snapshot:

P&L Statement:

Balance Sheet:

Revenue Break-up for Q4 FY20:

Based on Geography:

Geography Revenue (INR in Mill)
US 30.41
Europe  31.91
Asia 14.62

Based on Verticals:

Verticals Revenue (INR in Mill)
Passenger vehicles 58.33
Commercial vehicles 16.67
New mobility 0.83
Others 1.11

Key Points:

  • Management expects a 15% drop in Revenue of Q1 FY21 as compared to Q4 FY20. The drop will be volume driven and also expects H2 will be better than H1. Please note that these are just assumptions due to covid disruption and might vary.
  • KPIT won a $50+ Million deal by a tier 1 European automaker’s electrification program and the management sees more good long term big deals and are very optimistic.
  • Due to covid, demand for passenger vehicles are likely to increase rather than public vehicles in self driven or autonomous cars.
  • Management believes to continue being the leader in these technologies. 
  • WFM will be the new normal and they have taken steps to reduce 3 facilities in India and 2 facilities in Germany.
  • Increased VPI 10-15% compared to previous year. Usually they give 2 VPIs but this year only 1 VPI will be given at the end of the year depending upon their employee’s performance.
  •  The management has set 3 goals due to covid situation which are 
  1. Improve service and maintain time and quality.
  2. Spend on training and improving the WFM system. At present 98% of their employee work from home.
  3. Keep good cash on hand as customers are not likely to pay on time.
  • DSO is likely to increase in H1.
  • Powertrain and Autonomous verticals contribute over 60% of the revenue and also are growth drivers for upcoming years. Autonomous may show the most growth ahead.
  • Proficient being the major shareholder of KPIT holding 32.41% shares repaid all its loans and shares are now completely free. 4.28% shares were pledged.
  • Kishor Patil (CEO) has 100% shares pledged and he said that this is not because of any loans but to buy additional shares. Currently Kishor Patil holds 7.07% shares and if we look at the holding in previous quarter it stands at 6.44%.
  • Total pledged shares of promoters stands at 17%.
  • Sees risks with 3-4 customers from their T25 so they are increasing their deal pipeline with other customers (not a part of T25) who can replace them if needed.
  • Electrification, autonomous and Connected are the 3 areas which are getting more new deals especially electrification.
  • The company provides majority of its T25 customers all the 3 services which are Elect., ADAS and shared. 
  • Germany will drive the future of Mobility.
  • Profitability level is less in Europe than the US because of their investments in electrification and autonomous in Europe. 
  • Management is showing empathy towards the auto companies as they are in deep pain right now and believes that will create a good value in the long run. 
  • Usually 2-3% of the sales were put into capex and now 1-1.25% will be used this year and IT security updates will be happening.
  • Tesla is the company who works in-house and its market share is more than the combination of many large companies. Management sees an opportunity to work with Tesla.
Also Read on FinMedium:  Survive to Thrive Part 3: Follow Just 3 Steps And You May Not Need Professional Investment Advice

Thank you for reading this article. Hope it helps. If you like the article then do share it with your friends and family and don’t forget to SUBSCRIBE.

Source link

Disclaimer: The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the FinMedium or its members. The presentation of material therein does not imply the expression of any opinion whatsoever on the part of the FinMedium concerning the legal status of any company, country, area, or territory or of its authorities. For more info. please read our ToU & Privacy Policy here. If you have any concerns regarding this post, please reach out to us at

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!

Meet Mehta

Meet Mehta

21 | Small & Mid Cap Investor | CFA L1 candidate | Blogger | Reader | Engineer | Life-Long Learner
Please Share Now :)