KPIT Tech plunges 24% in 3 months as auto demand weakens

ET Intelligence Group: The stock of KPIT Technologies has fallen by 24% over the past three months compared with a 4% gain in the BSE Infotech index. The sharp underperformance by the mid-tier IT exporter can be attributed to weakness in demand from global automotive sector. The company offers software solutions in areas including autonomous driving, advanced assisted driving, and electric powertrains. It reported 29% sequential and 32% year-on-year drop in the June quarter net profit amid engineering budget cuts and delayed project execution by some of the major automobile companies in Europe.