To buy to sell KPIT technology to share
KPIT Technologies management told CNBC-TV18 that the company may revise its revenue forecast after completing the acquisition of four companies from Germany’s Technica group, which is not factored into its existing forecast. “Once we determine the day it will start to consolidate, at the end of the quarter, we will give that perspective on that specific part,” said Kishor Patil, co-founder, managing director and CEO of KPIT Tech.
The overhaul, the CEO said, will be “something more than we predicted”. In July, the company reported revenue growth of 18 to 21 in constant currencies for the year ending March 2023.
KPIT management estimates the acquisition can add at least 10% additional revenue in the year ending March 2024, Patil said.
“It really depends on how the other business grows, so I think we’re in that situation,” he said. KPIT Technologies will wholly own Technica group after the operation, which should close by the end of October.
KPIT Tech management has previously said the acquisition will be earnings per share accretive.
The Pune-based company has previously stated that all four Technica companies offer:
Technica Group’s two largest customers are among KPIT Tech’s top 25 customers, Patil said. “There’s a synergy, but it’s complementary… There are a couple of notable disruptors (that) they’re working with and that’s something we’re passionate about,” he said.
KPIT Technologies will wholly own Technica group after the operation, which should close by the end of October.