KPIT Technologies posted a net profit of Rs 55 crore during the first quarter of the fiscal in comparison to Rs 43.2 crore in the same period of last year, translating into a rise of 27 per cent year-on-year.

On a sequential basis though, net profit for the Pune-based Information Technology company declined by 41 per cent against a profit of Rs 93.6 crore in Q4 16.

In rupee terms, revenue in the April-June 2016 quarter stood at Rs 803 crore, a growth of 5.78 per cent over the corresponding period of last year. The geography that took the major hit was USA which accounted for 67.5 per cent of the income, and saw a growth of a mere 2.5 per cent year-on-year.

Europe, which accounted for 18.4 per cent of revenue fared better growing by 16 per cent.

Commenting on the Q1 performance, Ravi Pandit, co-founder, Chairman & Group CEO, KPIT said, “The current quarter results are in line with our communication earlier. In the changing world of IT where investments are directed more towards new technologies and are based on critical customer needs, we are getting ready with our investments in Digital Technologies, IoT, Industry Specific Solutions and Account Management.”

Kishor Patil, co-founder, CEO & MD, KPIT added, ”The revenue decline in the current quarter coupled with the wage hikes, has affected the profitability during the quarter. The revenue decline is a result of reduction in IT spend by some of our customers. While we continue to maintain our wallet share, we are working on new technology and business domains to further our partnership with these customers”

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