KPIT Technologies reported a nearly 29% decline in Q2 FY27 net profit to ₹121 crore as Chinese competition pressured global automakers and slowed deal-making, despite a 6.5% rise in revenue. | Photo: Official Website
KPIT Technologies reported a nearly 29 per cent decline in consolidated net profit to Rs 121 crore in the second quarter ended September, mainly on account of pressure on the automobile market from Chinese vehicle makers slowing down deals.
The company had posted net profit of Rs 169 crore in the same period a year ago.
KPIT expects losses to come down from the third quarter onwards.
"Two of our largest clients are where you have seen a large decline. One is in Europe, one is in Japan. We do believe that both these accounts will bottom out over the next couple of quarters. Two or three quarters at the most is what we are looking at. However, for some of our existing OEMs' clients in passenger cars, trucks and off-highway, we will see growth come bit by bit," KPIT Technologies co-founder and joint managing director Sachin Tikekar said during the company's earnings call.