KPIT - CASE (connected, autonomous, shared, electric) - Focused Automotive Play

You can checkout the Alphastreet India youtube channel in their description they have mentioned the link for PDF of Key Questions asked in Concall but for more indepth Listen Audio.

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Heard, KPIT added two Chinese OEMs recently, anybody can confirm the area of engagement, size, and value if it is significant?

My personal view is even if the value is low, it is very important to gain Chinese OEMs, as Chinese OEMs will conquer the world market within no time.


is KPIT related anywhere?

This is good development for Indian companies in EV ford: Ford takes a U-turn on electric vehicles - Times of India

you can check Home - for call transcripts


Fantastic results by KPIT !
Total deal won in this quarter - $125M !


Good results from KPIT! Clearly beat street estimates.

5.2% Q-o-Q revenue growth and 12.7% Q-o-Q PAT growth. Management projects 18-21% constant currency revenue growth and 18-19% EBITDA margins for FY23, bullish commentary.

I have a few tax accounting questions on KPIT. Looking forward to an accounting expert in helping answer these please :slight_smile:

Since listing, KPIT has on an average paid income taxes at the rate of 17-18%. This year that rate has climbed upwards of 20%. The FY21 annual report has this to say regarding reconciliation of taxes paid:

My questions:

  1. Why is the statutory tax rate mentioned as 35%? Isn’t it 25.17% for all Indian corporates now?
  2. I understand that SEZ tax holidays (Which are available till FY27 as per commentary) and differential overseas tax rates reduce the tax out-go for KPIT from the statutory rate.
    Can somebody help understand how to project an effective tax rate for KPIT for the coming few FYs considering the above?

KPIT working with Cochin Shipyard to develop hydrogen cell fueled shipping vessels.


Good interview


No wonder why a car / truck is going to have more lines of code than a aeroplane, very good documentary that explains how technology is used for the road safety.



Valuation 2.92 times to sales

Looks like a start-up from Oxford


Very good results. Revenue growth 6% QoQ and 23% YoY. Profit growth 8% QoQ and 41% YoY

Investor Update

  1. CC Revenue Growth of 23% Y-o-Y, 6.0% Q-o-Q. $ Revenue Growth of 16.4% Y-o-Y and 3.2% Q-o-Q ( CC Revenue Growth : 18% to 21% )
  2. Q1FY23 EBITDA at 19.4% against 18.6% last qtr. Y-o-Y EBITDA growth of 35.7%, 9.7% Q-o-Q ( EBITDA Margin : 18% to 19%)
  3. Net Profit at ₹ 854 million. Net Profit growth of 41%+ Y-o-Y, 8.3% Q-o-Q
  4. New wins continue to be stronge.r TCV of $ 155 million won during the quarter
  5. Sequential CC growth of 6% led by Electric Powertrain and architecture and middleware domains. Growth steered by passenger car vertical. Higher cross currency impact due to Euro, GBP and Yen depreciation against the INR.
  6. EBITDA expansion of 80 bps despite supply side constraints, fresher additions and cross-currency headwinds. Operating efficiency, net realization improvement and revenue growth leading to consistent improvement in margins
  7. Healthy growth in net profit aided by improvement in operating margins and higher other income. ETR for the quarter higher as compared to last quarter, as a result of one-time benefit last quarter.
  8. High cash conversion continued post acquisition payout, with DSO at 46 days. Net Cash at quarter end ₹ 10.6 billion. 14th consecutive quarter of increase in net cash and healthy cash conversion
  9. Net Cash Available (INR Million) 10,627

New Engagements ( TCV of new engagements won during the Quarter : $ 155 million)

  • A leading European Car Manufacturer selected KPIT for a multiyear engagement in the electric powertrain domain
  • A leading Asian Car Manufacturer awarded KPIT multiple programs in the connected and middleware domains
  • A leading American Commercial Vehicle Manufacturer selected KPIT for a A leading European Car Manufacturer selected KPIT for a strategic program in the middleware domain multiyear engagement in the Vehicle Engineering and Design domain
  • A leading American Tier I awarded KPIT multiple programs in the powertrain domain

KPIT expands its team and global infra-structure footprint

  • KPIT expands its team and global infra-structure footprint
  • KPIT unveiled its brand-new office in Novi, Michigan, USA
  • KPIT expands its local tech center in China - KPIT has taken the initiative to add 20 AUTOSAR engineers in Phase 1 to build a Local Tech Center in China. This workforce will consist of 10 senior engineers and ten fresh graduates / Interns. The team has already onboarded seven senior
    engineers and five interns.
  • KPIT to create opportunities in cutting edge automotive software in Kochi

The vehicle manufacturers are aiming to earn revenues over the life of the vehicle for sustainable growth. This change will be enabled by CASE and centralized architecture programs, essentially Software Driven Vehicles. KPIT is uniquely positioned as a software integrator, helping global OEMs accelerate this journey. We have started the year on a positive note with an all-round performance, with growth in-line with our plan and healthy margin expansion, despite cross-currency headwinds. We remain optimistic on the overall growth environment

  • Few projects started bit early
  • Top Block attrition slowed down
  • 11% QoQ head count increase
  • Out of the total engagements in the industry KPIT as a specialized player has 75% engagement in these programs
  • There is no signs of slowdown at the moment but cannot be ruled out, this will comes into picture when it comes to R&D related projects. KPIT works more on products where the budgets are already approved.
  • Most of the new engagements are 3-5 years long

Sustainable mobility: Council of Scientific and Industrial Research (CSIR) along with KPIT has launched the first indigenously built Hydrogen Fuel Cell bus



If we look clearly on the image, it is written SENTIENT Labs on the bus, not KPIT. But in the news it is mentioned as KPIT. As far as I know, KPIT is not into hydrogen bus business. It is done by Sentient labs which is another company in which Ravi Pandit is also a director. Not sure what are the financial advantages for KPIT. It is not clear. They are mixing Sentient Labs and KPIT name in various places. so it is getting difficult.

Annual report for last 2 years show some related party transactions between KPIT and Sentient Labs. I sent the below mail to investor relations to get this clarified. But they didnt respond to it.

Dear Sir/Madam,

I had asked a question during the AGM via writing. But it was not answered during the meeting. So I am asking the same question again via mail. It would be great if you could answer my question.

Can you please give some insight into the financial transactions between KPIT and Sentient Labs? For FY22 it was around 189.74 million as per the annual report page 220. For FY21 it was around 87.30 million (Annual report Page 315). It would be great if you could explain the expenses incurred for KPIT with respect to Sentient Labs. What are the financial benefits for KPIT in having this collaboration?

I am asking this especially because of this type of news coming in newspapers.

India's first indigenous Hydrogen fuel cell bus unveiled in Pune - Times of India

The news says it was developed by KPIT and CSIR. So I would like to actually know if it is really KPIT or Sentient Labs.

Can some one clarify the relationship between KPIT and Sentient Labs especially the financial benefits of this association for KPIT? I am wondering if they are trying to setup a new company using the money and name of KPIT.

FY21 Annual Report

FY22 Annual Report

Disclosure: Invested


Just googling I saw several results indicating that Sentient is a start-up incubated by KPIT. I presume then that it is a subsidiary or associate company of KPIT. Sentient Labs launches 1st indigenously developed hydrogen fuel cell bus | The Financial Express

As per this link: SENTIENT LABS PRIVATE LIMITED - Company, directors and contact details | Zauba Corp

The contact details for Sentient is :

which is also KPIT email id.

Based on Nida is a senior employee of KPIT:


Sentient Labs is not a subsidiary or associate company of KPIT. If it is such a company it should be mentioned in annual report. But no mention of that.

As you posted, they are using resources of KPIT. Also it is giving money to Sentient Labs. But no clarification what will KPIT get in back for spending this resources and money.

Below is a video of Ravi Pandit where he clearly says KPIT and Sentient Labs are 2 separate companies:

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This is a serious corporate governance issue then if listed company funds, management bandwidth is being used for some private foray of the management, or some pride project. If they believe in the product, this activity should happen in the listed entity. I hope you get a cogent reply from the company, and please let us know as well when you do.


What email did you write on? I also just mailed the IR head and the company secy.