KPIT Technologies reported a mixed performance for the third quarter, with profitability coming under pressure even as revenue posted modest growth on a year-on-year basis.
For Q3, KPIT Technologies’ net profit declined sharply by 21% to ₹133.4 crore compared with ₹169 crore in the same period last year. The fall in bottom-line performance came despite a 2% increase in revenue, which rose to ₹1,617.4 crore from ₹1,587.7 crore on a year-on-year basis.
Operating performance also softened. EBIT for the quarter slipped 4.8% year-on-year to ₹234 crore from ₹246 crore, while operating margin narrowed to 14.5% compared with 15.5% in the corresponding quarter last year.
A key factor weighing on profitability was the impact of labour code-related adjustments, which stood at ₹59.7 crore during the quarter.
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