23 July 2015
1QFY16 Results Update | Sector:
Technology
KPIT Technologies
BSE SENSEX
28,371
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val (INRm)/Vol ‘000
Free float (%)
Financials & Valuation (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. INR
RoE (%)
RoCE (%)
P/E (x)
EV/EBITDA
( )
Estimate change
TP change
Rating change
14%
2015
29.9
3.3
2.4
11.8
-7.9
64.9
18.4
17.9
9.4
5.6
2016E
31.5
3.4
1.9
9.7
-18.2
75.0
13.9
17.9
11.5
5.2
2017E
34.1
4.5
2.7
13.3
37.1
88.3
16.3
21.6
8.4
3.4
n
n
S&P CNX
8,590
KPIT IN
196.0
40.8/0.7
233 / 124
-32/-27/-48
225/1195
78.3
CMP: INR115
n
TP: INR125 (+9%)
Upgrade to Neutral
Product segment drags revenues; margins begin to recover
Revenues decline on sharp seasonal swing in ITS:
Revenues declined 3.3%
QoQ to USD118.3m, below our estimate of USD123m. Revenue miss was a
function of greater-than-anticipated impact in the Products & Platforms
segment, which declined by over USD7.5m QoQ due to cyclical nature of
Intelligent Transportation Solutions (ITS). ITS declined to USD1.16m from
USD6.13m in 4Q. Excluding ITS, revenues were flat QoQ. Cummins declined
8.2% QoQ, in line with our estimate.
Steady start to margin recovery:
EBITDA margin was 9.5% (in line) compared
with normalized EBITDA margin (excluding one-offs) of 8% in the previous
quarter. Steady uptick in profitability through FY16 would be a positive. At
INR444.13m, PAT was slightly ahead of our estimate of INR421m. This was led
by lower depreciation of INR164m compared to our estimate of INR203m.
Outlook of revenue growth from 2Q:
KPIT cited that the profitability actions
have been put in place and those should drive margin expansion from
3QFY16. Focus from 2Q has returned to revenue growth. KPIT expects to stem
two consecutive quarters of revenue decline and deliver growth, going
forward.
Downside limited; upgrade to Neutral:
KPIT has corrected ~33% post last
quarter’s results. Despite weak revenues during the quarter, we don’t see any
significant downside from current levels, especially with gradual revenue
uptick anticipated in the remainder of the year, accompanied with margin
recovery. Margin recovery should drive near-term valuations. Further re-
rating would be driven by full-year revenue growth, which is likely to be
evident only from FY17. We upgrade our rating to
Neutral,
with a price target
of INR125 (9x FY17E EPS).
n
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 3982 5424
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

KPIT Technologies
1QFY16 Revenue: product seasonality drags revenues
n
n
n
KPIT’s 1QFY16 revenue declined 3.3% QoQ to USD118.3m, below our estimate
of flat QoQ at USD123m.
Decline during the quarter was caused due to sharp fall in the Products &
Platform seasonality, dragged by seasonality in Intelligent Transportation
Solution deal, where revenues fell to USD1.16m from USD6.13m in the previous
quarter.
In Rupee terms, revenue was INR7,583m, down 0.6% QoQ, v/s our estimate of
INR7,837m (+2.7% QoQ).
Exhibit 1: USD revenues declined for second consecutive quarter, this time on products
seasonality
USD revenue - m
Growth - QoQ (%)
125.0
105.5
2.0%
108.8
3.1%
112.2
3.1%
109.7
-2.3%
113.6
3.6%
115.2
8.5%
1.4%
1.2%
-3.2%
-3.3%
126.4
122.4
118.3
Source: MOSL, Company
Margins: In line, led by currency, utilization and SAP
n
n
EBITDA margin was 9.5% (in line), and compared with normalized EBITDA
margin (excluding one-offs) of 8% in the previous quarter.
Drivers of uptick in margins during the quarter were: [1] growth in SAP (+17%
QoQ), [2] uptick in utilization (+130bp QoQ at onsite and +80bp QoQ at
offshore) and [3] 2.8% QoQ depreciation in INR.
Exhibit 2: Adjusting for 4QFY15 one-offs, EBITDA margin improved 150bp QoQ
EBITDA margin (%)
18.9 18.2 19.8 18.1 18.5
18.1 17.4
SGA (%)
20.7
16.9
15.7
15.9
14.4
16.4 17.2
18.5
15.3 14.0 15.1 16.7 15.7 17.7 15.9 15.5
15.4 16.1 12.1 13.3 13.9
4.5
9.5
Source: MOSL, Company
n
n
Depreciation during the quarter was INR164m well below our estimate of
INR203m, while other income at INR106m and interest cost at INR47m were in
line.
PAT at INR444.13m is slightly ahead of our estimate of INR421m. This was led by
lower depreciation of INR164m, compared to estimate of INR203m.
2
23 July 2015

KPIT Technologies
Segment-wise performance: SAP rebounds, Products & Platform and top
account drag
n
Growth during the quarter was driven by SAP (17% QoQ) in America (4.5% QoQ)
while Auto & Engineering declined ~17%, primarily on revenues from ITS coming
down to USD1.16m from USD6.13m in the previous quarter. Excluding
Automotives & Transportation, all other verticals saw growth. Even Automotives
should return to growth from the next quarter.
Exhibit 3: America grew strong, while APAC was dragged by ITS revenues in 1QFY16
Geographies
America
Europe
APAC
Contr. to
1QFY16 Rev. (%)
69.7
16.7
13.6
Growth - QoQ
(%)
4.5
-4.0
-29.5
Contr. to FY15
Rev. (%)
66.8
15.5
17.7
Growth
- YoY (%)
1.7
20.1
43.7
Exhibit 4: Auto & Engg segment hit by products seasonality, IES dragged by top account
Lines of Business
IES
Auto & Engg
SAP
BTU
Contr. to
1QFY16 Rev. (%)
39.0
30.2
21.0
9.8
Growth - QoQ
(%)
-1.6
-16.9
17.0
3.2
Contr. to FY15
Rev. (%)
38.8
30.2
21.5
9.5
Growth - YoY
(%)
8.4
34.2
-4.2
-6.1
Exhibit 5: Automotive and Transportation should pick up from 2Q onwards
Verticals
Automotive & Transportation
Manufacturing
Energy & Utilities
Others
n
Contr. to
1QFY16 Rev. (%)
37.1
35.8
18.7
8.4
Growth - QoQ
(%)
-13.0
3.9
1.7
6.3
Contr. to FY15
Rev. (%)
37.0
33.8
20.1
9.2
Growth - YoY
(%)
15.4
-5.5
45.5
-1.2
While Top clients Cummins saw ~8% decline in 1QFY16 and may decline for
another quarter in 2Q. Top 2-5 accounts grew 6% QoQ while 6-10 accounts
declined 3.5%
Exhibit 6: Top accounts Cummins was down on expected lines
Top Clients
Top Client - Cummins
Top 2-5 Clients
Top 6-10 Clients
Contr. to
1QFY16 Rev.
(%)
14.2
16.6
11.5
Growth –
QoQ (%)
-8.2
5.9
-3.5
Contr. to FY15
Growth - YoY
Rev. (%)
(%)
15.1
-0.6
15.5
-16.3
10.3
25.1
Source: Company, MOSL
23 July 2015
3

KPIT Technologies
Exhibit 7: Cummins declined sharply, should stabilize in 2H
Top Client (USD m)
10.9
1.0
4.2
1.6
6.1
QoQ Gr (%)
7.9
3.6 1.9
-1.8
Exhibit 8: SAP surged on the base of one-time hit in 4QFY15
SAP (USD m)
-1.4 0.5
-5.8 -4.8
-8.7
28.7
30.2
28.3
28.4
26.0
3.6
QoQ Gr (%)
8.7
-3.4
28.2
26.0
4.5
17.0
-1.1 -0.8
-3.0
-8.2
-10.2
-11.5
18.3
20.2
18.2
19.6
19.8
18.4
20.4
17.5
18.5
17.6
18.6
18.3 16.8
32.0
32.6
26.9
-27.9 24.9
29.5 21.3
Source: MOSL, Company
Source: MOSL, Company
Takeaways from management commentary
n
n
n
Expect revenue growth from 2Q:
With profitability actions in place, margin
improvement should be visible from 3QFY16. Focus from 2Q, has consequently
shifted back towards revenue growth. It expects to stem 2 consecutive quarters
of revenue decline and turn a corner on revenues going forward.
2Q may not see margin expansion:
Wage hikes that become effective from
2QFY16 will be 200bp headwind to margins,. Uptick in product revenues and
utilization are key margin levers that will cushion the decline in 2Q, and margins
should start seeing expansion from 3Q, with people productivity measures
kicking in.
On low cash conversion:
Higher DSO (88 days, +3 QoQ) contributed towards
weaker start in terms of Operating cash flow generation. KPIT expects the
Operating Cash conversion ratios to be comparable to FY15, implying
improvement in the remainder of the year. Capex will be higher this year
(~INR1.2-1.3b) due to investments in Bangalore campus and internal Digital
initiatives.
Change in estimates: Cutting revenue estimates 1.8%/3.2%
n
n
Our revenue estimates for FY16/17 are lower by 1.8%/3.2% after 1Q miss and
pressure in top account. 1Q operating performance lends incremental
confidence on gradual margin recovery, with utilization still a big lever.
Our earnings uptick of 0.5%/2.3% is a function of lower normalized depreciation
rate v/s our earlier estimates.
Exhibit 9: Change in estimates
Revised
FY16E
FY17E
63.6
64.0
494.6
533.2
1.1
7.8
10.8
13.1
9.7
13.3
(18.2)
37.1
Earlier
FY16E
FY17E
63.5
64.0
503.8
550.9
3.0
9.3
10.8
12.6
9.6
13.0
(18.6)
34.6
Change
FY16E
FY17E
0.2%
0.0%
-1.8%
-3.2%
-190bp
-150bp
-10bp
50bp
0.5%
2.3%
Source: MOSL, Company
INR/USD
USD Revenue (m)
USD revenue growth (%)
EBITDA Margin (%)
EPS (INR)
EPS Growth (%)
23 July 2015
4

KPIT Technologies
Valuation and view
n
n
n
n
n
n
KPIT remains focused on select verticals, evidenced as the company added ERP
capabilities to its Engineering prowess by acquisitions of CPG, Sparta and
Systime. Going forward, it is looking to expand to new-age services like
Analytics, PLM and even IMS. Its focus on Auto engineering services and
leadership position in the same given the segment’s healthy growth potential in
the foreseeable future.
After some growth rebound in 2Q and 3QFY15, 4Q was a significant miss,
profitability plummeted to the lowest levels in history. While this was marred by
multiple one-offs, the company’s commentary of dire need for productivity
uptick suggests greater structural issues.
In FY16, challenges to growth will come from Cummins, where KPIT has lost
some business, and also pruning of a long tail of accounts, which have not
yielded sufficient profitability. As a result, Product Engineering services remains
the sole growth segment, which contributed 30.2% to FY15 revenues.
KPIT’s SAP segment is finally witnessing some stability – after volatile swings in
performance of both revenues as well as margins in the segment. The shift to
cloud through SuccessFactors has hit deal sizes in the segment and KPIT is now
building on a reset base as a consequence.
KPIT trades at 11.5xFY16E and 8.4xFY17E EPS. We expect the company to grow
its USD revenues at a CAGR of 4.4% over FY15-17E and EPS at a CAGR of 6%
during this period. Contribution to our EPS CAGR comes from EBITDA margin
expansion of 230bp by FY17 to 13.1%.
KPIT has corrected ~33% post last quarter’s results. Despite weak revenues
during the quarter, we don’t see any significant downside from current levels,
especially with gradual revenue uptick anticipated in the remainder of the year,
accompanied with recovery in margins. Margin recovery makes a case for near
term valuations. Recovery in revenue growth is unlikely to play out before FY17,
which, if demonstrated, will drive valuations further from re-rating. We upgrade
our rating to Neutral, with a price target of INR125, which discounts FY17E EPS
by 9x.
Key triggers
n
n
n
Improved growth outlook from segments other than Product Engineering
Sharp margin uptick in quick time
Growth recovery in SAP
Key risk factors
n
n
n
Continued revenue decline in top account Cummins
Risk from increasing adoption of cloud based Oracle services
Prolonged execution challenges in Engineering business
23 July 2015
5

KPIT Technologies
Exhibit 10: 1-year forward PE band
32
24
16
8
0
11.2
2.0
9.9
PE (x)
Peak(x)
Avg(x)
Min(x)
23.1
Exhibit 11: 1-year forward PB band
60
30
0
-30
-60
-90
KPIT Tech. PE Relative to Sensex PE (%)
LPA (%)
-31.9
-41.1
Exhibit 12: Comparative valuation
Mkt capRating
(USD b)
Mphasis
1.4 Neutral
Mindtree
1.7 Neutral
KPIT Tech
0.3 Neutral
Hexaware
1.3 Sell
Persistent Sys. 0.8 Neutral
Tier-II Agg
8.2
Company
TP (INR) Upside
EPS (INR)
(%) FY15E FY16E FY17E
32.3 35.8 38.2
400
-7.4
1250
-2.9
63.9 70.6 88.5
115
8.2
11.8
9.6 13.0
225
-17.5
10.6 13.5 16.9
665
4.0
36.3 36.9 47.3
FY15E
13.4
20.2
9.0
25.6
17.6
16.9
P/E (x)
FY16E
12.1
18.2
11.0
20.2
17.3
15.5
FY17E FY15E
11.3 12.8
14.5 29.4
8.2 18.5
16.1 25.7
13.5 22.1
12.6 19.5
RoE (%)
FY15-17E CAGR (%)
FY16E FY17E USD rev.
EPS
13.4 13.6
4.6
8.8
26.9 28.0
15.4
17.7
13.9 16.1
6.1
4.7
30.4 35.9
15.1
26.1
19.7 22.0
14.6
14.1
19.8 21.8
Source: Company, MOSL
23 July 2015
6

KPIT Technologies
Story in charts
Exhibit 13: Offerings focused on select verticals, with mix of
IT and Engg
Vertical distribution
Others, 9.2
Energy &
Utilities,
20.1
Exhibit 14: Auto Engg to be the key growth driver going
forward
Auto & Engg Revenues (USD)
34.6%
YoY growth
34.1%
24.4%
11.1%
Automotive
, 37.0
Manufactur
ing, 33.8
Source: Company, MOSL
59.1
FY11
79.6
FY12
99.0
FY13
110.1
FY14
147.6
FY15
Source: Company, MOSL
Exhibit 15: SAP dragged FY14 performance, followed by only
marginal growth in FY15
SAP revenues (USD m)
37%
28%
110
-4%
105
FY15
Growth (YoY)
Exhibit 16: India-based Telematics deal and acquisition of
iCubed facilitated FY15 growth
USD revenue (m)
38.6
444
YoY growth (%)
489
33.6
508
307
410
8.3
10.1
3.9
70
FY11
97
FY12
124
FY13
-11%
FY14
FY12
FY13
FY14
FY15
FY16E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 17: Lower margins drive miss on PAT outlook shared
at the beginning of the year
PAT (INR m)
2,391
2,371
Exhibit 18: Unlikelihood of large acquisitions to help
improve FCF
FCF (INR m)
1,620
2,009
857
948
1,215
659
-400
-2,068
-611
-1,463
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY11
FY12
FY13
FY14
FY15
Source: Company, MOSL
Source: Company, MOSL
23 July 2015
7

KPIT Technologies
Exhibit 19: Operating metrics
1QFY14
Geography Analysis (%)
USA
Europe
ROW
LOB Analysis (%)
Integrated Enterprise Solutions
Auto & Engg
SAP
Business Transformation Unit
Customer Details
No. of Customers Added
No. of Active Customers
Customers with a runrate of > $1m
Top Customer - Cummins
Top 5 Customers (%)
Top 10 Customer (%)
Revenue Split (%)
Onsite Revenues
Offshore Revenues
Contract Type (%)
T&M
FP
Debtor Days
HR - Details
Development Team:
Onsite (Avg)
Offshore (Avg)
Onsite FTE
Offshore FTE
Total FTE
Development
Support
Marketing
Total
Utilization (%)
Onsite
Offshore (Incl. Trainees)
75.0
13.1
11.9
2QFY14
71.9
13.8
14.5
3QFY14
72.7
15.4
12.0
4QFY14
69.8
14.5
15.8
1QFY15
69.1
15.8
15.1
2QFY15
66.5
13.7
19.8
3QFY15
67.3
15.5
17.2
4QFY15
64.5
16.9
18.6
1QFY16
69.7
16.7
13.6
38.5
23.6
26.0
11.9
39.5
24.2
25.3
11.0
40.5
25.3
23.7
10.6
39.2
25.9
23.7
11.2
40.4
26.3
22.6
10.7
38.0
30.0
22.6
9.4
38.7
29.1
23.3
8.9
38.3
35.1
17.4
9.2
39.0
30.2
21.0
9.8
6.0
189.0
78.0
16.8
38.6
47.3
3.0
192.0
78.0
16.5
38.0
46.3
3.0
195.0
78.0
17.9
38.2
47.6
3.0
198.0
80.0
15.5
35.7
45.8
3.0
201.0
83.0
15.9
34.3
45.1
3.0
204.0
84.0
14.9
32.1
42.8
3.0
206.0
87.0
14.6
28.6
39.4
2.0
208.0
90.0
14.9
30.1
41.6
2.0
210.0
87.0
14.2
30.7
42.2
54.2
45.8
54.6
45.4
52.8
47.2
54.3
45.7
57.2
42.8
51.1
48.9
53.5
46.5
52.4
47.6
55.3
44.7
76.9
23.2
77
76.4
23.6
75
75.6
24.4
76
72.9
27.1
87
71.6
28.4
82
65.1
29.6
80
62.9
33.8
83
63.7
31.3
82
72.9
26.2
85
1,176
6,553
1,107
4,809
5,916
7,771
545
140
8,456
94.2
73.4
1,243
6,708
1,148
4,888
6,036
8,122
548
146
8,816
92.4
72.9
1,274
6,987
1,123
4,985
6,108
8,430
554
152
9,136
88.1
71.3
1,366
7,139
1,231
5,064
6,295
8,583
558
155
9,296
90.1
70.9
1,423
7,224
1,293
5,068
6,361
8,757
568
165
9,490
90.8
70.2
1,456
7,518
1,327
5,383
6,710
9,191
572
170
9,933
91.1
71.6
1,494
7,868
1,348
5,519
6,867
9,541
575
175
10,291
1,534
8,317
1,316
5,456
6,772
10,213
586
181
10,980
1,564
8,514
1,362
5,654
7,016
10,062
585
192
10,839
90.2
85.8
87.1
70.2
65.6
66.4
Source: Company, MOSL
23 July 2015
8

KPIT Technologies
Financials and valuations
Key Assumptions
Y/E March
INR/USD Rate
Revenues (USD m)
Offshore Revenue (%)
Total Headcount
Net Addition
Per capita productivity (USD)
Offshore Utilization (%)
Onsite Utilization (%)
FY10
47.3
154.6
59.8
4,918
342
31,440
71.2
91.2
FY11
45.7
221.7
57.2
6,514
1,596
34,031
68.5
89.8
FY12
48.5
307.3
52.1
7,719
1,205
39,808
72.6
91.9
FY13
54.5
410.4
46.2
8,321
602
49,326
73.9
94.1
FY14A
60.6
444.3
46.0
9,296
975
47,798
72.1
91.1
FY15
61.1
489.0
46.5
10,980
1,684
44,536
69.3
89.5
FY16E
63.6
494.6
46.2
10,816
(164)
45,730
69.7
89.5
FY17E
64.0
533.2
47.1
11,377
561
46,870
73.2
91.5
Income statement
Y/E March
Sales
Change (%)
Cost of Services
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Minority Interest
PAT
Extraordinary
Net Income
Change (%)
FY10
7,316
-7.8
4,091
1,611
1,614
22.1
308
27
-253
1,026
169
16.5
0
857
0
857
30.2
FY11
10,120
38.3
6,492
2,106
1,522
15.0
411
26
18
1,103
155
14.0
0
948
0
948
10.5
FY12
14,897
47.2
9,934
2,885
2,078
13.9
445
78
128
1,683
437
25.9
-31
1,215
100
1,315
38.8
FY13
22,386
50.3
14,640
4,096
3,650
16.3
466
154
-170
2,860
766
26.8
-86
2,009
-13
1,996
51.7
FY14
26,940
20.3
18,180
4,528
4,233
15.7
540
287
-74
3,332
941
28.2
0
2,391
98
2,489
24.8
FY15
29,899
11.0
21,473
5,155
3,271
10.9
851
279
345
2,486
114
4.6
0
2,371
0
2,371
-4.7
(INR Million)
FY16E
31,478
5.3
22,455
5,630
3,393
10.8
701
275
252
2,669
724
27.1
0
1,945
0
1,945
-18.0
FY17E
34,127
8.4
23,943
5,702
4,482
13.1
772
293
221
3,637
982
27.0
0
2,655
0
2,655
36.5
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loan & other long term liabilities
Capital Employed
Fixed Assets
Other LT assets
Curr. Assets
Debtors
Cash & Bank Balance
Loans & Advances
Current Liab. & Prov
Net Current Assets
Application of Funds
E: MOSL Estimates
FY10
312
3,559
3,871
51.2
1,108
5,030
1,522
950
3,117
1,388
1,052
677
1,306
1,811
5,030
FY11
340
5,692
6,032
63.7
1,105
7,201
1,581
1,300
5,719
2,525
2,096
1,097
1,875
3,844
7,201
FY12
356
6,769
7,125
333.7
1,189
8,649
1,853
4,527
6,983
4,380
1,838
766
4,714
2,269
8,649
FY13
386
9,976
10,362
270.2
1,602
12,235
2,005
5,785
8,005
4,673
1,921
1,412
5,597
2,409
12,235
FY14
381
12,355
12,736
-
1,549
14,285
2,161
5,994
10,122
6,743
1,908
1,471
6,949
3,173
14,285
FY15
381
12,573
12,954
-
1,211
14,165
2,328
5,088
13,149
6,979
4,228
1,942
8,536
4,613
14,165
(INR Million)
FY16E
381
14,630
15,011
-
818
15,829
2,893
5,293
13,135
7,444
3,903
1,788
7,882
5,254
15,829
FY17E
381
17,285
17,666
-
818
18,484
2,921
5,293
16,141
7,987
6,235
1,919
8,457
7,684
18,484
23 July 2015
9

KPIT Technologies
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
FY10
5.4
7.4
24.5
0.7
12.9
FY11
5.7
7.7
34.4
0.7
12.3
FY12
8.0
9.1
39.0
0.7
8.7
13.8
12.2
9.2
1.3
2.8
0.6
30.9
32.8
69
4.3
19.1
18.2
91
6.5
18.5
20.6
107
8.8
FY13
10.6
12.5
52.2
0.9
8.5
10.5
8.9
5.8
0.9
2.1
0.8
23.0
30.5
76
11.5
FY14
12.9
14.7
63.8
1.1
8.6
8.6
7.6
5.0
0.8
1.7
1.0
20.5
29.4
91
12.9
FY15
11.8
16.1
64.9
1.2
10.1
9.4
6.9
5.6
0.6
1.7
1.1
18.4
17.9
85
13.5
FY16E
9.7
13.2
75.0
1.5
15.5
11.5
8.4
5.2
0.6
1.5
1.4
13.9
17.9
86
12.2
FY17E
13.3
17.1
88.3
2.0
15.1
8.4
6.5
3.4
0.4
1.3
1.8
16.3
21.6
85
11.8
Cash Flow Statement
Y/E March
CF from Operations
Cash for Working Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proc. from equity issues
Proceeds from LTB/STB
Dividend Payments
Cash Flow from Fin.
Net Cash Flow
Exchange Diff/Cash from sub.
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
E: MOSL Estimates
FY10
1,245
-169
1,076
-905
171
-530
-1,435
27
-104
-55
-132
-491
47
1,671
-491
1,052
FY11
1,217
-574
643
-882
-239
207
-675
1,203
-96
-64
1,043
1,011
115
1,052
1,011
2,096
FY12
1,874
-870
1,005
-3,002
-1,998
174
-2,828
65
1,091
-72
1,084
-739
477
2,096
-739
1,838
FY13
2,286
-1,083
1,204
-1,730
-526
-1,769
-3,499
1,706
1,192
-145
2,753
458
-3
1,838
458
1,921
FY14
2,760
-1,730
1,030
-2,023
-994
112
-1,912
75
951
-197
829
-53
57
1,921
-53
1,908
FY15
3,150
880
4,029
-1,184
2,845
85
-1,099
0
-610
0
-610
2,320
-184
1,908
2,320
4,228
(INR Million)
FY16E
3,050
-965
2,084
-1,266
819
0
-1,266
0
-1,144
0
-1,144
-325
-2,676
4,228
-325
3,903
FY17E
3,523
-99
3,425
-800
2,625
0
-800
0
-293
0
-293
2,331
-3,038
3,903
2,331
6,235
23 July 2015
10

KPIT Technologies
Corporate profile: KPIT Tech
Company description
KPIT Cummins is a leading technology solutions
partner for global manufacturing corporations, with
special focus on automotive, energy & utilities,
industrial equipments and semiconductor industries.
With over USD463m revenue (LTM) and 9,933
employees, company continues to focus on its
chosen areas to grow, with equal thrust on organic
and inorganic approaches.
Exhibit 20: Sensex rebased
KPIT Tech.
240
200
160
120
80
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Sensex - Rebased
Exhibit 21: Shareholding pattern (%)
Jun-15
Promoter
DII
FII
Others
21.7
7.7
29.2
41.4
Mar-15
21.7
11.2
31.2
36.0
Jun-14
22.2
7.7
37.7
32.4
Exhibit 22: Top holders
Holder Name
Warhol Ltd
Fidelity Puritan Trust-Fidelity Low-Priced Stock Fund
Van Dyck
Acacia Partners Lp
CX Partners Fund 1 Ltd
% Holding
9.9
4.6
4.0
3.0
2.6
Note: FII Includes depository receipts
Exhibit 23: Top management
Name
Ravi Pandit
Kishor Patil
Sachin Tikekar
Anil K. Patwardhan
Designation
Chairman & Group CEO
Managing Director & CEO
President – Strategic Relationships
SVP & Head – Corp. Finance
Exhibit 24: Directors
Name
Ravi Pandit
Kishor Patil
B V R Subbu*
Adi Engineer*
Amit Kalyani*
Dr. R. A. Mashelkar*
Name
Lila Poonawalla*
Prof. Alberto Vincentelli*
Sanjay Kukreja*
Sachin Tikekar
Anant Talaulicar
Dwayne Allen
*Independent
Exhibit 25: Auditors
Name
BSR & Co LLP
Type
Statutory
Exhibit 26: MOSL forecast v/s consensus
EPS (INR)
FY16
FY17
MOSL forecast
9.7
13.3
Consensus
forecast
10.9
14.1
Variation (%)
-11.0
-5.6
23 July 2015
11

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