Latest news with #KPITTechnologies
Time of India
a day ago
- Automotive
- Time of India
KPIT CEO calls for increased R&D, deeptech investments
KPIT CEO Kishor Patil emphasised the need for India to boost R&D investment, foster deeptech innovation, and improve export quality to compete in the global automotive sector. Highlighting geopolitical shifts and India's growth potential, he called for stronger government support, citing KPIT's own rising R&D spend and global expansion efforts. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India needs to push investments into research and development in technology and deeptech, and boost quality exports to compete in the automotive sector , said Kishor Patil , cofounder and chief executive of mid-tier engineering and technology services firm KPIT Technologies 'If you look right now, the innovation index of India is still very extremely low; Rundefined educational reforms which are happening should help over time. And we have to build our exports…there quality will be key. It is headed in that direction but not what we need.'India's R&D expenditure as a percentage of GDP was around 0.7% in 2024, compared with 2.68% in China, as per a discussion paper by government think tank NITI to Patil, with the ongoing geopolitical conflicts, supply chain issues hurting China, and Europe and the US being slow markets due to tariffs and other macro factors, 'India is the only market which is growing and open. So, my view is, this is the time we have to really build a very strong ecosystem.'One of the strengths of China has been the ecosystem built with support from its government, he said, adding that in India, the government needs to push infrastructure and automotive-focused software services provider, KPIT has increased its own R&D investments to around 6-7% of revenue from 2-3% about five years ago, he the financial year ended March 2024, KPIT spent $13.53 million on R&D as compared to $9.6 million in the previous year, as per its annual report. The FY24 spending was around 2.3% of the revenue.'For KPIT, we have a 6-7% investment into R&D, typically around 2-4% is organic and inorganically it is 2-3%,' Patil Pune-headquartered company made three investments in 2023-24, worth over Rs 400 crore (around $47 million). In May this year, KPIT said it acquired US-based Caresoft Global Technologies ' Engineering solutions for up to $191 million to expand its business in the off-highway commercial vehicle company will increase investment in the off-highway commercial vehicle segment, he said. The Caresoft acquisition is for that, he said, adding that it will also open the China market for KPIT along with cost reduction to compete with China's automotive FY25, KPIT's revenue grew 18% to $691 is the company's fastest growing market is Asia, with an around 20% market share, he said. 'Europe and the US are similar over 30% each. But India, Japan and, this year, Europe look better for us.'Patil expects the three regions to be key growth areas for the company with technologies like cybersecurity, autonomous vehicles and artificial intelligence being integral to the deal pipeline worth $280 million that the company indicated during its FY25 results announcement.
Time of India
3 days ago
- Automotive
- Time of India
ETAuto Tech Summit 2025: India's automotive tech dreams need a bold R&D reset, industry leaders at the event
The message from the ETAuto Tech Summit 2025 in Bengaluru was loud and clear: if India wants to position itself as a global hub for automotive technologies, it must significantly step up its R&D investments and build a deep, future-ready talent pool. Industry stalwarts expressed concern over India's lagging progress and emphasised the urgent need to capitalise on the growing opportunities already unfolding within the country. 'R&D spending is key to long-term growth. One of our biggest misses has been underutilising opportunities to create IP, drive deep-tech innovation, and foster a strong research culture,' said Kishor Patil , Chairman, NASSCOM ER&D Council , MD and CEO, KPIT Technologies. He added that global growth trends clearly correlate with high R&D expenditure, and it is time for Indian OEMs to move beyond their acquisition mindset and instead embrace grassroots innovation to build a solid base of patented technologies and indigenous products. Drawing comparisons with innovation-driven nations like the US and China, Patil pointed out that those countries follow a well-structured, multi-pronged approach - government-led identification of key focus areas, direct project allocation to OEMs, strong academia-industry ties, and active support for startups. 'India is only beginning to build this ecosystem,' he said. 'We need to treat this as a fire-fighting exercise if we intend to close the gap.' The numbers back his concern. India's R&D investment in the automotive sector stands at just 0.65per cent of GDP, significantly behind China (2.56per cent ), the US (3.59per cent ), Japan (3.41per cent ), and Germany (3.13per cent ). 'We have just 4,552 global patents, while China has 70,160 and the US 54,087,' Patil said. India currently ranks 39th on the Global Innovation Index 2024, while China sits at 11th. Dr. Pawan Goenka, Chairman, IN-SPACe (Indian National Space Promotion and Authorisation Centre), echoed the call for change. 'We must focus on building 'Brand India' by developing technologies indigenously, instead of always looking to acquire them abroad,' he said. 'We have fallen behind in R&D, now is the time to realign and push forward with renewed intent.' Adding further perspective, Dr. Reji Mathai, Director, ARAI, emphasised the need for localised solutions. 'Increasing the localisation of components is critical,' he said. 'We also need India-specific datasets and software solutions tailored to real-world use cases in the country.' Dr. Andy Palmer, global automotive veteran and Chairman, Inobat Auto, captured the shifting paradigm, 'The race in the automotive world today is for technology leadership over market share.' Reflecting on the current geopolitical landscape, he highlighted the importance of strategic alliances and self-reliance. 'India must act now to protect and strengthen its supply chains.'
Time of India
4 days ago
- Business
- Time of India
KPIT Technologies: This stock has surged remarkably since hitting its 52-week low in April; should you invest?
Price analysis indicates that whilst the stock trades under 5 and 200-DMA, it maintains positions above 10,20,30,50 and 100-DMA in daily charts. (AI image) KPIT Technologies Ltd, a prominent Indian IT company, has seen a significant increase of over 30% from its lowest point in April 2025. KPIT Technologies' shares have demonstrated robust performance, breaking through after five weeks of stable trading on weekly charts, whilst approaching a technical pattern formation on daily charts. Experts suggest that risk-tolerant traders seeking short-term gains could consider purchasing KPIT Technologies shares, with expectations of reaching Rs 1,520 within 3-4 weeks, says an ET report. KPIT Technologies share price trend & outlook The company's shares reached Rs 1,928 on July 12, 2024, before losing momentum and experiencing a sharp decline. By June 20, 2025, the share price settled at Rs 1,393, representing a 27% decrease. Following a 52-week low of Rs 1020 on April 7, 2025, which aligned with the 200-weeks Exponential Moving Average, the stock began its recovery phase. KPIT Technologies Since April 2025, the shares have shown a remarkable 36% increase, indicating strong buying interest. Continued positive momentum could potentially drive the price towards Rs 1,500, the ET report said. The stock showed a breakthrough from a 5-week consolidation period in the previous week and is approaching a decisive point near Rs 1,420-1,430 levels. Price analysis indicates that whilst the stock trades under 5 and 200-DMA, it maintains positions above 10,20,30,50 and 100-DMA in daily charts. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like [Click Here] 2025 Best Luxury Hotel Prices Expertinspector Learn More Undo The daily RSI stands at 59.8, with readings under 30 indicating oversold conditions and above 70 suggesting overbought conditions, as per Trendlyne data. The daily MACD remains positioned above its centre and signal Line, indicating positive momentum. "KPIT Technologies stock price has seen good base formation on monthly scale while on weekly scale the stock gave a range breakout after five weeks," Arpit Beriwal Analyst - Derivatives, Wealth Management, Motilal Oswal Financial Services Ltd, was quoted as saying. "On daily scale the stock is on the verge of Cup and Handle pattern breakout which is a bullish price pattern and holding well above its 20 DEMA," he added. "Good buying interest is visible across Midcap IT stocks and holding well in spite of market weakness," highlighted Beriwal. "Thus, we are recommending to buy the stock with keeping stop loss below 1370 levels on a closing basis for a target towards 1520 zones," he recommends. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Standard
4 days ago
- Automotive
- Business Standard
KPIT Tech drops after mid-quarter update flags near-term challenges
KPIT Technologies slipped 5.29% to Rs 1317.25 after the company released its mid-quarter update for June 2025, which painted a mixed picture of near-term business momentum and execution risks. The update included an announcement on the acquisition of Caresoft's Global Engineering Solutions business, approved by the board in May 2025. While KPIT confirmed that the deal is progressing, it clarified that certain closing conditions still need to be met. The company expects to complete the acquisition by the end of the current quarter, with revenue contributions from the acquired business likely to begin in Q2 FY26. Management estimates that the deal could add around 4% growth in FY26 compared to FY25, while also enhancing KPITs capabilities in the truck and off-highway segment, manufacturing engineering solutions, and aiding its entry into the China market. However, investors were more focused on the cautionary signals in the broader business commentary. While the deal pipeline remains strong, KPIT noted that conversions are slower than anticipated. Although Europe is showing signs of recovery, the US and Asia are still facing uncertainties, and the pace of ramp-ups has been even more sluggish than previously expected. Some new business wins are also partially cannibalizing existing revenues due to tight client budgets and a shift in spending priorities. Adding to investor concerns, KPIT indicated that it does not expect any one-time gains in Q1 FY26 like it saw in Q4 FY25. The company also flagged potential pressure on other income due to recent forex fluctuations, further dampening the near-term outlook. Despite the long-term strategic benefits of the Caresoft acquisition, the mid-quarter update appears to have triggered a reality check for the market. Slower execution, deal ramp-up delays, and muted Q1 guidance have collectively contributed to the stocks sharp decline, as investors reassess the near-term earnings visibility. KPIT Technologies is a global software development and integration partner for the automotive and mobility industry, focused on enabling software-defined vehicles. The company specializes in embedded software, AI, and digital solutions, supporting clients in adopting next-generation mobility technologies. On a consolidated basis, the company's net profit surged 48.91% to Rs 244.73 crore on 15.98% increase in net sales to Rs 1,528.34 crore in Q4 March 2025 over Q4 March 2024.
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Business Standard
5 days ago
- Business
- Business Standard
KPIT stock slips 6% after mid-quarter update; should you buy, hold or sell?
KPIT Technologies share price today Shares of KPIT Technologies slipped 6 per cent to ₹1,310.45 on the BSE in Tuesday's intra-day trade after the company in its mid-quarter update said that the overall business environment continues to be uncertain with rising geopolitical concerns and ambiguity around the overall tariff scenario. In the past four trading days, the stock price of the computer software & consulting company has dipped 8 per cent. It had hit a 52-week low of ₹1,020.60 on April 7, 2025. At 11:23 AM; KPIT was trading 5 per cent lower at ₹1,318.75 on the BSE. In comparison, the BSE Sensex was trading higher by 1.2 per cent at 82,848. The average trading volumes at the counter jumped nearly two-fold, with a combined 3.2 million shares changing hands on the NSE and BSE. KPIT mid-quarter update KPIT in its mid-quarter update said the 100 per cent acquisition of Caresoft's Global Engineering Solutions business, approved by the board on May 6, 2025, was expected to close by the end of the current quarter. Revenue from the acquired business is expected to be consolidated from Q2FY26, contributing an estimated 4 per cent growth in FY26 over FY25. Additionally, the company expects increased offshoring to help optimise costs but has guided for the absence of one-time gains in Q1FY26 and a potential dip in other income due to forex volatility. Early but strategic wins have emerged in the Trucks and Off-highway segment, though some are partially cannibalising existing revenues due to clients' limited budgets. The deal pipeline remains strong, however, conversions and ramp-ups are slower than anticipated, especially in the US and Asia, while Europe shows relatively stronger momentum. 'For KPIT, the pipeline continues to be strong, though the conversions are much slower than expected. Substantial pipeline however is moving in a positive direction. In geographic, Europe is looking positive. USA /Asia are a bit uncertain. The ramp-ups for the wins are progressing at an even slower pace than what was anticipated at the end of the last quarter,' the company said. Track LIVE Stock Market Updates ICICI Securities view on KPIT post mid-quarter update KPIT's acquisition of Caresoft's Global Engineering Solutions business is a strategically aligned move that enhances its presence in the Trucks and Off-highway segment while strengthening its manufacturing engineering capabilities and supporting its entry into the China market. While the consolidation is expected to contribute around 4 per cent growth in FY26, the overall outlook remains tempered by macro uncertainties, including geopolitical risks and tariff-related ambiguity, ICICI Securities said in a note. According to the brokerage view, the slower pace of deal conversions and ramp-ups (in the US and Asia), alongside some revenue cannibalisation from budget-constrained clients, could weigh on near-term performance. That said, continued offshoring and steady traction in Europe may offer some cushion, it added. JM Financial Institutional Securities view on KPIT KPIT did not provide any guidance for growth or margin for FY26. It cited difficulty in determining the pace of deal to revenue conversion as reason for the same. Though it did mention that some of these deals are already in the transition phase, suggesting imminent pick-up once clarity emerges. Management indicated that while the macro environment remains fluid, the medium-term growth drivers are intact. They expect broad-based growth across geographies, with Europe anticipated a rebound as trade dynamics stabilize over the next few months. KPIT emphasized that transformation and large program ramps are expected to meaningfully contribute from H2 FY26. Margin stability remains a priority, with focus on AI-led productivity improvements, cost-effective delivery models, and platform-based engagement approaches. Analysts at JM Financial Institutional Securities post Q4 results, lowered FY26 cc growth estimate by 300bps. However a 500bps favourable cross-currency swing (based on current FX) results in higher USD estimates, limiting changes to EPS. KPIT's order backlog and execution should help it navigate the current macro, the brokerage firm said in the result update.
