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

PUNE: Automotive software firm LPIT Technologies said that it expected its Q4FY20 and FY21 revenues to be impacted as a result of the disruptions at development centres globally on account of the Covid-19 outbreak.

In a business update issued today, the company said that certain teams are being moved offshore from client locations and global centres, which will drive offshore volume up and adversely impact FY21 dollar revenue.

Lower offshore realisations and travel restrictions are also likely to impact revenue. It expects to have better clarity in 30-60 days as the situation is fluid and constantly changing.

KPIT Technologies is among the first few tech companies to provide guidance on how the Covid-19 outbreak will impact its revenues. It added that it had a healthy pipeline and that large deal discussions were progressing as per agreed timelines.

So far, there had been no cuts in engineering spends and while most manufacturing activities had stopped at present, engineering teams continued to work remotely.

All non-critical capital expenditure is on hold, with cost reduction initiatives identified and actions having started, as cash conservation is the need of the hour, said the company in the statement.

KPIT is also in discussions with its top 25 clients to decide immediate action and to understand the medium term thought process. Almost 95% of its employees are now working from home, with the company working towards a 100% work from home situation across locations.

The company works with most of the biggest global automotive OEMs and has a significant presence in Europe, USA and India.