Semiconductor stock which is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer jumped 11 percent in the day’s trade upon declaring robust Q1FY25 results with a 106 percent jump in Net Profits and new JV, acquisition to expand railway business vertical.
Price Action
With a market capitalization of Rs. 28,953 Crores, the shares of Kaynes Technology India Limited were trading at Rs. 4,530 per equity share, up 7 percent from its previous day’s close price of Rs. 4,249.10.
Q1FY25 Results
Its Revenue from operations grew by 70 percent YoY from Rs. 297.17 Crores in Q1FY24 to Rs. 503.97 Crores in Q1FY25 and it declined by 21 percent QoQ from Rs. 637.30 Crores in Q4FY24 to Rs. 503.97 Crores in Q1FY25.
Its Net Profit grew by 106 percent YoY from Rs. 24.64 Crores in Q1FY24 to Rs. 50.77 Crores in Q1FY25 and it declined by 38 percent QoQ from Rs. 81.25 Crores in Q4FY24 to Rs. 50.77 Crores in Q1FY25. Its Net Profit Margin increased by 178bps from 8.3 percent in Q1FY24 to 10.1 percent in Q1FY25.
Coming to the EBITDA it grew by 66 percent from Rs. 40.3 Crores in Q1FY24 to Rs. 66.9 Crores in Q1FY25, accompanied by EDITBA margins from 13.5 percent to 13.3 percent a decline of 27bps.
New JV and Acquisition for Expansion of Railway Business Vertical
In Addition, Kaynes Holding Pte. Ltd a wholly-owned subsidiary of Kaynes Technology India Limited has executed a joint venture agreement with Sensonic GmbH and other existing shareholders of Sensonic Austria, for the proposed subscription of shares and acquisition of a 54 percent stake by Kaynes Singapore in Sensonic Austria.
Sensonic Austria is engaged in the development, manufacture, sale, and operation of Distributed Acoustic Sensing (“DAS”) for the rail industry and is in the business of providing Information as a Service (IAAS) solutions for railway monitoring applications via the use of unique fiber optic sensing (FOS) technology.
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Other Highlights
Kaynes Technology India Limited Q1FY25 Growth was led by strong demand across all the verticals, more notably Industrial & EV, Aerospace, Outer-space & Strategic Electronics, and Railways segment. It is consistently adding new capabilities across verticals and expanding the customer base, with a specific focus on large customers and high-growth segments.
Its order book surged from Rs. 4115.2 Crores in Q4FY24 to Rs. 5,038.6 Crores in Q1FY25, indicating a growth of 23 percent QoQ.
In Q1FY25 Kaynes Technologies Limited revenue breakup across business verticals consists of Insdustrial+EV 55 percent, Automotive 29 percent, Railways 8 percent, IOT / IT, Cons, and Others 5 percent, Aerospace & Strategic Electronics 2 percent, Medical 1 percent.
About the Company
Kaynes Technologies India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer. It has a strong customer base with major players like Hitachi, Siemens, Tonbo Imaging, and many more.
It offers Solutions for Box Build, Printed Circuit Board Assemblies (PCBAs), ODM, Product Engineering, loT Solutions, smart metering technology, smart street lighting, and inverter technology. It also offers conceptual design and product engineering services.
Kaynes Technologies India Limited offers its products and services to major players in the automotive, industrial, nuclear, medical, railway, aerospace and defense, outer space, nuclear, medical, railways, loT, information technology, and other segments.
Kaynes Technologies India Limited is also investing Rs. 2,800 Crores to set up a semiconductor OSAT (Outsourced Semiconductor Assembly and Test) and compound semiconductor facility at Kongara Kalan near Hyderabad.
In terms of Return ratios, it has reported a return on equity(ROE) of 10.6 percent, and a return on capital employed (ROCE) of 14.5 percent. It is a debt-free company with a debt-to-equity ratio of 0.13
Written by: Bharath K.S
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