The core business activity of implementation of the SAP or Oracle projects and the other IT projects, and with the Cummins dependency, all have been growing with around 25-30% rate of growth.
The trigger in this particular company is the new product. Their JV with Bharat Forge is likely to launch the energy saving device Revolo for the automobiles in this financial year and KPIT Cummins has the IPR for that, so they get 7.5% royalty. At the same time being the 50% partner in this company, they have the advantage of getting the revenue coming into it.
In the full year 2012-13, this product could self generate between Rs 300-500 crore of top line and KPIT's shares with royalty could be between Rs 55-60 crore. For a Rs 9 crore equity company, a sizeable chunk of money is likely to come next year from this area of activity.
The company has successfully started building IPR-based embedded product, which could find its way into some other products going forward. A Rs 1,000 crore company transforming into Rs 2,000 crore over next two-and-a-half and three years looks pretty interesting from investment point of view.
