KPIT Technologies shares slipped more than 3% in early trade after the company reported its Q3 results, as investors reacted to a sharp year-on-year decline in profitability and margin compression, even though revenues posted modest growth.
For the quarter, KPIT Technologies reported a net profit of Rs 133.4 crore, marking a 21% decline compared with Rs 169 crore in the same period last year. The drop in profit came despite revenue rising 2% year-on-year to Rs 1,617.4 crore from Rs 1,587.7 crore, highlighting pressure on operating performance.
Earnings before interest and tax (EBIT) declined 4.8% year-on-year to Rs 234 crore, compared with Rs 246 crore in Q3 last year. As a result, EBIT margin narrowed to 14.5% from 15.5% a year ago. The company also disclosed a labour code impact of Rs 59.7 crore during the quarter, which weighed on overall profitability and margins.
During the session, KPIT Technologies shares slipped to a low of Rs 1,063.60, after opening at Rs 1,109.00. The stock touched an intraday high of Rs 1,110.10, compared with the previous close of Rs 1,105.80. On a longer-term basis, the stock remains well below its 52-week high of Rs 1,479.00, though still above the 52-week low of Rs 1,020.60.
