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KPIT Technologies says Covid-19 will impact FY20-21 revenues

PUNE: Automotive device firm LPIT Technologies said that it expected its Q4FY20 and FY21 revenues to be impacted because of the disruptions at development centres globally because of the Covid-19 outbreak.

In a trade update issued these days, the corporate said that certain groups are being moved offshore from client places and global centres, which is able to pressure offshore quantity up and adversely impact FY21 buck revenue.

Lower offshore realisations and shuttle restrictions are also prone to impact revenue. It expects to have higher clarity in 30-60 days as the situation is fluid and repeatedly changing.

KPIT Technologies is one of the first few tech companies to provide guidance on how the Covid-19 pandemic will impact its revenues. It added that it had a wholesome pipeline and that giant deal discussions were progressing as in keeping with agreed timelines.

So far, there had been no cuts in engineering spends and whilst most manufacturing actions had stopped at the present, engineering groups persisted to paintings remotely.

All non-critical capital expenditure is on hold, with price reduction initiatives recognized and actions having started, as cash conservation is the desire of the hour, said the corporate in the remark.

KPIT could also be in discussions with its best 25 clients to come to a decision quick action and to understand the medium term thought process. Almost 95% of its workers at the moment are running from home, with the corporate running against a 100% work from home situation throughout places.

The company works with many of the largest global automotive OEMs and has a vital presence in Europe, USA and India.

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