Shares of auto software solutions provider KPIT Technologies surged as much as 9% on Wednesday after the company announced its partnership with Japanese carmaker Honda.
The auto software solutions company's stock jumped 9% to ₹848.55 apiece on the National Stock Exchange (NSE) after the announcement.
KPIT Technologies' partnership with Honda aims to realise the journey of Honda's Software-Defined Mobility (SDM). "With Honda's next-generation software architecture and control-safety technology and KPIT's deep domain & software expertise in the areas of autonomous driving, vehicle electrification, in-vehicle infotainment systems and platform software, Honda will continue to provide various services and enhanced value to customers around the world in the future," the company said in a stock exchange filing.
KPIT has worked closely with Honda for the last eight years. The partnership in mid to long-term will expand to over 2,000 software and vehicle system professionals from KPIT across the globe to power Honda's Software-Defined Mobility (SDM) roadmap until year 2030 and beyond, said Kishor Patil, CEO, KPIT Technologies.
"Honda is well respected for its DNA of Innovation, Excellence, and Quality. KPIT echoes Honda's core principles, creating a solid foundation for a long-term, strategic partnership. Our broad experience in developing SDV roadmaps for several industry leading car and truck makers coupled with an ecosystem of Alliances gives us the confidence to create something unique for Honda," said Sachin Tikekar, president & joint managing director, KPIT Technologies.
In November 2022, KPIT Technologies was selected by Renault Group as a strategic software scaling partner for its next-generation software-defined vehicle platform. KPIT has two decades of experience in automotive and mobility software, cross-domain competencies, global scale, and ecosystem of alliance partners, along with the expertise in developing SDV roadmaps for several industry leaders.
KPIT Technologies reported a 49% rise in total income to ₹938 crore for the third quarter of FY23, up from ₹754 crore in the September 2022 quarter. Its net profit also rose 44% to ₹100 crore in Q3, compared to ₹70 crore in the same quarter last fiscal. The profit stood at ₹83 crore during the September quarter.