INCOME STATEMENT

ANALYSIS AND
FORECASTING OF
KPIT TECHNOLOGY
Submitted by

Nisha G. Ghodake
Roll No. 17019
 INTRODUCTION

Income statement one of the most heavily scrutinized

financial statements issued by every organization and KPIT
as well.
In this project, on the basis of last year income
statement help to estimate income statement of March -
2019 and March-2020. Because of this, it is critical for users
to have a sound understanding of the story KPIT income
statement is trying to tell.
 INTRODUCTION OF KARVY

KARVY is one of the top financial services companies offering customized

financial solutions to its investors. The KARVY group is today a well-diversified
conglomerate. Its
businesses straddle the entire financial services spectrum as well as data
processing and managing segments. The Group offers stock broking, depository
participant, distribution of financial products (including mutual funds, bonds
and fixed deposits), commodities broking, personal finance advisory services,
merchant banking & corporate finance, wealth management, NBFC (loan to
individuals, micro and small businesses). Data management, forex &currencies,
Registrar & transfer agents, Data analytics, Market Research among others.
 OBJECTIVE

The study has the following objectives.

❖ To study the future growth of the company
❖ To show Apply forecasting techniques to determine a
company’s target volume
❖ Try to develop investing recommendations for KPIT
clients based on the results
of the income statement analysis.
❖ Reviewing the KPIT performance over past periods.
 RESEARCH METHODOLOGY
Sources of Data Collection For the success of the present
study data was collected mainly from secondary sources
like annual reports of KPIT the FY 2010-11 to FY 2017-
18,Newsletter, analysist transit call, magazines and journals
of the company. Tools used for data analysis: The last 7
years annual report of the company is compiled and
tabulated for the purpose of study. The techniques used are:
• Comparative study of Income statement for the FY 2014-
15& 2017-18
• Estimated income statement for the FY 2018-19& 2019-20
• comparison with competitors
 Data analysis

Income statement and forecasting income statement for

the year 2015 to 2020
..\Downloads\kpit final temp.xlsx
 STOCK INFORMATION

STOCK INFO
Bloomberg KPIT IN
Equity shares 200.2
52WeekRange(INR) 223/105
1,6,12 Rel.per(%) 16/60/33
M.cap(INRb) 41.3
M.cap(USDb) 0.6
Avg., val, INRm 242
Free float(%) 81.1
MARKET PERFORMANCE
FINANACIAL SNAPSHOT

Y/E 2018A 2019E 2020E

Sales 36.3 39.958 43.547
EBITDA 3.7 4.22 4.25
PAT 2.4 3.352 3.363
EPS(INR) 12 17.6 18.3
EPS Gr.(%) 0.8 16.6 13.03
RoE(%) 14.3 13.8 15.4
RoCE(%) 15.6 16.2 18.6
P/E 17.4 15.7 12.2
 SHAREHOLDING PERFORMANCE

Share holiding pattern

Particulers No of shares 18-Mar
promoters 3735353000.00% 18.91%
foreign institutions 97867030 49.55%
general public 26944214 13.64%
Others 17921382 9.07%
NBankMutualfunds 9267695 4.69%
GDR 7567388 3.83%
financial institution 537503 0.27%
foreign promoters 40000 0.02%
 COMPARISON WITH COMPETITORS

COMPARISION WITH COMPETITORS

COMPANY CMP EPS PE(X)

FY19E FY20E FY19 FY20

cyient 628 41.2 47.1 15.2 13.3

l&t technology 1278 52.7 61.7 24.3 20.7

tata elxsi 1083 40.6 45.9 26.7 23.6

 FINDINGS

• sales have increased by 11.15%

• software development expenses had increased by 15.81%,
• increase in Gross Profit is 3.67%.
• In the year 2014-015 having revenue of INR 29899.17 Mi. and continued to grow
• to INR 36655.82 Mi. till 2017-18.
• In the year 2014-015 having EBITDA of INR 3244.07 Mi. and continued to grow
• to INR 3,785.05 Mi. till 2017-18.
• In the year 2014-015 having PAT of INR 2369.88 Mi. and continued to grow to
• INR 2,2528.55 Mi. till 2017-18.
 CONCLUSION

Analyzing the financial report of the company is a mandatory activity for each party,
currently or potentially involved in its activity. Company’s statements indicate facts
and trends, which should cause awareness of the business’ management, as well as
of its creditors and investors. The income statement is important for KPIT because it
clarifies the different revenues and expenses of company and continues grow of
revenue. It provides important insights into how effectively management is
controlling expenses, the amount of interest income and expense, and the taxes
paid. KPIT technology is good growing company, for investing purpose its good
option. Forecasting income helps to find out how much growth of the company for
the year 2019 and 2020.This good investing recommendations for KPIT clients based
on the results of the income statement analysis. After Reviewing the KPIT
performance understand that company have great future.