KPIT Technologies reported a 31.8% decline in consolidated net profit to ₹117.17 crore for the quarter ended June, signaling mounting pressure on margins for the automotive software provider.
The results, released on Wednesday, revealed that while the company managed to grow revenue from operations by 8.85% to ₹1,674.99 crore, the top-line expansion was insufficient to offset cost pressures or maintain previous profitability levels.
This sharp decline follows a broader sell-off over the past five trading days, during which the stock dropped 25% to reach ₹558.
The company’s headcount remained stable at 12,303 employees, suggesting that workforce expansion has not yet translated into proportional earnings growth.
The market reaction was immediate and severe.
Shares of KPIT Technologies crashed 10% to hit the lower circuit at ₹604.40 on the National Stock Exchange, wiping out significant market value in a single session.
This sharp decline follows a broader sell-off over the past five trading days, during which the stock dropped 25% to reach ₹558.65.