KPIT Cummins to raise revenues from engg services

MUMBAI (Reuters) - Software and engineering services firm KPIT Cummins Infosystems Ltd is looking to make high-yielding engineering services its dominant revenue earner in three years, a top official said on Thursday.

"We are focussing on boosting revenue from engineering services,especially in our niche segment of embedded electronic software," President and Executive Director Girish Wardadkar told Reuters in an interview on the sidelines of a conference.

It is targeting raising revenues from the segment to 45 percent in three years from 25 percent now, and reduce IT services contribution to 40 percent from 55 percent, he said. The rest would come from back office services.

The company is looking to broaden its automotive segment to include aerospace and marine transportation, he said.

"Focus on the engineering services is essential and our solution for continued growth for the next two decades."

"Opportunities in the engineering space worldwide are reducing but in our niche area we see prices remaining secure," he said.

Revenues from parent Cummins Inc is also seen going down to 25 percent from just about 40 percent in the next five years, he said.

"Our engagement with them is increasing but the share of non-Cummins revenue is increasing. This will be even more so with our renewed focus on engineering services."

The company also sees higher price realisations in its niche area of operations.