KPIT Technologies Ltd. expects to grow 15% over the next few years as it focuses on rapid changes within the automobile industry.
The mid-sized information technology firm, whose clients include as many as 12 among the top-15 global automotive original equipment manufacturers and nine tier-I suppliers, grew 7% sequentially in the fourth quarter. Ravi Pandit, the company’s co-founder and chairman, however, said investors must look at its annual growth rates, and not bracket it as just another IT company.
That’s because KPIT will continue to receive orders and execution opportunities from the automobile firms, Pandit told BloombergQuint’s Niraj Shah in an interview. “As the complexity of work that we do rises, we’re slowly moving from being vendors to being partners,” he said, adding steady growth rates over the next few years are expected.
“While KPIT’s solutions have been tried and tested in such complex vehicles, vendors have the confidence of working with us,” Pandit said. As a result, deal sizes have improved, he said, with BMW AG being its latest client.
With clients consolidating suppliers, tried and tested vendors like KPIT will stand to gain more and larger contracts, he said.
- Significant change in profitability expected going ahead.
- Will focus on commercial vehicles, which is very big market.
Watch the full interview here: