IT firm KPIT said its consolidated net profit for the December 2018 quarter grew 3.63 per cent to ₹63.9 crore.
The total income of the company for the quarter stood at Rs 566.7 crore as against Rs 569.47 crore in the same period previous fiscal.
Last year, KPIT and Birlasoft had announced an amalgamation scheme, which was approved by the National Company Law Tribunal (NCLT) with the written order coming on December 18, 2018.
“Hence the results for the quarter... are published only for the continuing business, which is Business IT and only the Profit Before Tax, Tax and Profit after Tax numbers are published for the discontinued business, which is the engineering business being demerged,” the filing noted.
Kishor Patil, co-founder, CEO and MD of KPIT, said the Board has adopted the composite scheme of merger and demerger with January 15, 2019 as the effective date.
“We look forward to the exciting journey of focus and value creation in both the entities viz Birlasoft in Enterprise Digital IT and KPIT in Automotive Engineering and Mobility Solutions,” he added.
In January last year, the two companies had announced an amalgamation scheme, under which shareholders of CK Birla Group firm Birlasoft will get 22 equity shares of the combined KPIT-Birlasoft entity for every nine equity shares of Birlasoft.
KPIT and Birlasoft had said they will first merge Birlasoft into KPIT and later split the combined entity into two public companies. One of the entities will focus on automotive engineering and mobility solutions, while the other will engage in enterprise digital business.
Patil said while the current quarter revenue was affected by lower billing days and completion of a couple of large projects in IT, the company is on track with its annual revenue guidance and well ahead of the operational margins guidance.
At the beginning of the year, KPIT had given a guidance of constant currency revenue growth of 8 - 10 per cent and operational EBITDA ranging between 11.5 - 12.5 per cent.
“Though this quarter was soft due to seasonality, our pipeline continues to be healthy. As we get ready to start a new journey, we believe both KPIT and Birlasoft look forward to the enthusing opportunities ahead,” KPIT President and Board member Sachin Tikekar said.
Patil, Tikekar, Vinit Teredesai (Chief Financial Officer) and other board members have resigned as part of the development.
Amita Birla (founding Chairman of Birlasoft and the Co-Chairman of the CK Birla Group) and CK Birla have been appointed as additional directors of KPIT, while Rajeev Gupta has been named as CFO.
The KPIT Board also approved the change in designation of Anjan Lahiri (a nominee of Birlasoft) as Managing Director and Chief Executive Officer of the company for a period of 3 years with effect from January 16, 2019, the filing said.