In the dynamic and fast-growing semiconductor sector, a prominent company is emerging as a strong contender. With a targeted approach toward integrated electronics manufacturing and a dedication to innovation, it is well-positioned to make a meaningful impact on India’s expanding semiconductor ecosystem.
Price Action
With a market capitalization of Rs.34,128 Crores, the shares of Kaynes Technology India Limited were trading at Rs.5,540.00 per equity share, up 2 percent from its previous day’s closing price.
Business Overview
Kaynes Technology India Limited is positioning itself as a key player in India’s semiconductor industry, focusing on integrated electronics manufacturing to meet the rising domestic demand.
The company has received letters of intent from clients in sectors like automotive, consumer electronics, and industrial applications, reflecting its growing footprint across various industries. With planned increases in production capacity and substantial R&D investments, Kaynes aims to support India’s efforts to build a robust semiconductor supply chain.
Strategic Initiatives
Kaynes Technology India Limited’s wholly-owned subsidiary, Kaynes Semicon Private Limited, received Union Cabinet approval on September 2, 2024, for its proposal to establish a semiconductor facility in Sanand, Gujarat, with a planned investment of Rs.3,307 crore.
Backed by government support, including a 50 percent subsidy for this new Gujarat facility, Kaynes aims to manufacture six million chips daily and achieve a revenue target of $250 million within the next four years.
Additionally, Kaynes Technology India Limited is committing Rs.2,800 crore to develop a semiconductor OSAT (Outsourced Semiconductor Assembly and Test) and compound semiconductor facility at Kongara Kalan near Hyderabad.
Management Guidance
Jairam Sampath of Kaynes Technology India, in an interview with ETNOW, stated that the company is on track to achieve its revenue target of Rs.3000 crore with an EBITDA margin exceeding 15 percent.
Over the next 5-10 years, he anticipates feasible growth of 40-60 percent. For its EMS segment, the company plans a capital expenditure of Rs.200-250 crore by year-end, with capex expected to grow by 50 percent annually starting next year.
Additionally, Sampath projects that the company’s semiconductor business will generate Rs.4000 crore in revenue by FY30.
Financial Performance
Kaynes Technology India Limited reported a 59 percent YoY increase in revenue from operations, rising from Rs.360.84 crore in Q2FY24 to Rs.572.11 crore in Q2FY25. On a QoQ basis, revenue grew by 14 percent, up from Rs.503.97 crore in Q1FY25.
Net profit also saw substantial growth, with an 86 percent YoY increase from Rs.32.3 crore in Q2FY24 to Rs.60.2 crore in Q2FY25, and a 19 percent QoQ rise from Rs.50.77 crore in Q1FY25. The company’s net profit margin improved as well, increasing from 8.73 percent in Q2FY24 to 9.94 percent in Q2FY25.
The company’s order book grew from Rs.5,038.6 crore in Q1 FY25 to Rs.5,422.8 crore in Q2 FY25, demonstrating a healthy increase in business and a strong pipeline of future projects.
About the Company
Kaynes Technology India Limited, headquartered in Mysore, Karnataka, India, is a leading provider of integrated electronics manufacturing services (EMS). Founded in 1988, the company has grown to become a key player in the Electronics System Design and Manufacturing (ESDM) industry, offering comprehensive solutions with a strong focus on Internet of Things (IoT) capabilities.
The company provides its products and services to key players across various sectors, including automotive, industrial, nuclear, medical, railway, aerospace and defense, space, IoT, information technology, and other industries.
Written by – Siddesh S Raskar
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