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KPIT Technologies (BOM:542651) Beneish M-Score : -2.59 (As of May. 25, 2024)


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What is KPIT Technologies Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for KPIT Technologies's Beneish M-Score or its related term are showing as below:

BOM:542651' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Med: -2.57   Max: -1.48
Current: -2.59

During the past 7 years, the highest Beneish M-Score of KPIT Technologies was -1.48. The lowest was -3.10. And the median was -2.57.


KPIT Technologies Beneish M-Score Historical Data

The historical data trend for KPIT Technologies's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KPIT Technologies Beneish M-Score Chart

KPIT Technologies Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial -1.87 -3.10 -2.57 -1.48 -2.59

KPIT Technologies Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.48 - - - -2.59

Competitive Comparison of KPIT Technologies's Beneish M-Score

For the Information Technology Services subindustry, KPIT Technologies's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KPIT Technologies's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, KPIT Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where KPIT Technologies's Beneish M-Score falls into.



KPIT Technologies Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of KPIT Technologies for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8222+0.528 * 0.9951+0.404 * 0.9243+0.892 * 1.4477+0.115 * 0.883
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.097707-0.327 * 1.0416
=-2.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹9,558 Mil.
Revenue was ₹48,715 Mil.
Gross Profit was ₹17,012 Mil.
Total Current Assets was ₹20,164 Mil.
Total Assets was ₹41,679 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,434 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1,958 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹15,126 Mil.
Long-Term Debt & Capital Lease Obligation was ₹2,168 Mil.
Net Income was ₹5,945 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹10,018 Mil.
Total Receivables was ₹8,031 Mil.
Revenue was ₹33,650 Mil.
Gross Profit was ₹11,693 Mil.
Total Current Assets was ₹15,016 Mil.
Total Assets was ₹34,006 Mil.
Property, Plant and Equipment(Net PPE) was ₹4,795 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1,464 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,798 Mil.
Total Current Liabilities was ₹11,681 Mil.
Long-Term Debt & Capital Lease Obligation was ₹1,867 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(9558.41 / 48715.41) / (8030.71 / 33650.38)
=0.196209 / 0.238651
=0.8222

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(11693 / 33650.38) / (17011.55 / 48715.41)
=0.347485 / 0.349203
=0.9951

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (20164.48 + 5433.88) / 41678.96) / (1 - (15015.72 + 4794.66) / 34005.75)
=0.385821 / 0.41744
=0.9243

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=48715.41 / 33650.38
=1.4477

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1463.79 / (1463.79 + 4794.66)) / (1957.93 / (1957.93 + 5433.88))
=0.23389 / 0.264878
=0.883

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 48715.41) / (1797.67 / 33650.38)
=0 / 0.053422
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2168.07 + 15125.89) / 41678.96) / ((1866.54 + 11680.54) / 34005.75)
=0.414933 / 0.398376
=1.0416

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5945.33 - 0 - 10017.67) / 41678.96
=-0.097707

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

KPIT Technologies has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.


KPIT Technologies Beneish M-Score Related Terms

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KPIT Technologies (BOM:542651) Business Description

Traded in Other Exchanges
Address
Plot No. 17, Rajiv Gandhi lnfotech Park, MIDC-SEZ, Phase-Ill, Maan, Taluka- Mulshi, Hinjawadi, Pune, MH, IND, 411057
KPIT Technologies Ltd is a global technology company specializing in providing IT Consulting and Product Engineering solutions and services to Automotive, Manufacturing, Energy, and Utilities companies. The Company derives revenues primarily from providing engineering services which includes design engineering services, embedded software development with its related services and from the sale of licenses and products. Geographically, it derives a majority of revenue from the Americas.

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