A leading semiconductor player has returned to the spotlight after setting a robust 60 percent revenue growth target for the current fiscal year. The company, known for its strong presence in sectors such as automotive, industrials, and consumer electronics, has outlined a confident outlook backed by expanding order books, new client additions, and capacity enhancements.
During Thursday’s trading session, the shares of Kaynes Technology India Ltd reached an intraday high of Rs.5,823.50 apiece, rising 1.4 from the previous close of Rs.5,737.50 apiece. The shares retreated since the peak and are trading at Rs.5,804.50 per share. Over the past five years, the stock has delivered over 670 percent returns.
Future Outlook
Kaynes Technology has shown strong financial and operational performance as of March 2024. The company’s order book stands at Rs.6,597 crore, reflecting robust business momentum and a healthy pipeline for future growth. Its EBITDA is Rs.411 crore, representing a notable 62 percent year-on-year increase, while the EBITDA margin has improved to 15.1 percent, up by 101 basis points.
The company’s net worth has risen to Rs.2,837 crore, indicating enhanced financial stability and a solid balance sheet. Additionally, Kaynes Technology maintains a manageable net debt position at Rs.681 crore, ensuring prudent leverage and financial discipline. These metrics collectively highlight the company’s operational efficiency, financial strength, and sustained growth trajectory.
In the latest conference call, Mr. Jairam Sampath, CFO and Managing Director of Kaynes Technology expressed confidence in the company’s growth trajectory for FY26. He stated that a minimum revenue growth of 60 percent would take the company to approximately Rs.4,350 crores. He further added that, if operations progress smoothly, this target could be surpassed. Additionally, the company is aiming for at least a 50 basis point expansion in EBITDA margins, reflecting strong internal planning and a focus on improving profitability.
Financial Highlights
In the Q4 of FY25, Kaynes Technology India Ltd reported revenue of Rs.1,004.9 crore, marking a strong year-on-year growth of approximately 50.7 percent compared to Rs.666.7 crore in Q4 FY24. On a sequential basis, revenue rose by around 46.5 percent from Rs.685.9 crore in Q3 FY25, reflecting solid operational execution and growing demand across key segments.
Net profit for Q4 FY25 stood at Rs.116.2 crore, up by 43.1 percent year-on-year from Rs.81.2 crore in the corresponding quarter of the previous year. Sequentially, net profit surged by 75 percent from Rs.66.4 crore in Q3 FY25, indicating a significant improvement in profitability and operating leverage.
Segmental Revenue
In FY25, Kaynes Technology’s revenue breakdown across segments reveals a varied portfolio. The largest portion at 43 percent stems from OEM Turnkey PCBA solutions which focus on printed circuit board assemblies. Following this 39 percent comes from OEM Turnkey Box Build involving full product assembly. The remaining 18 percent arises from ODM Product Engineering and IoT solutions highlighting innovation-driven services.
Looking at industry verticals Kaynes Technology earns 55 percent of its revenue from the Industrial sector including Electric Vehicles. The Automotive sector accounts for 26 percent reflecting its involvement in vehicle electronics. Aerospace and Strategic Electronics contribute 1 percent while Medical adds 2 percent. Railways contribute 7 percent while IoT IT Consumer and other segments together make up 8 percent showing a wide market reach.
Geographical Revenue
In FY25, Kaynes Technology’s revenue distribution across geographies shows a dominant 91 percent from India. North America contributes 5 percent, while Europe accounts for 4 percent. SE Asia and other regions each add 1 percent, reflecting a strong domestic focus with a minor international presence.
Written by – Siddesh S Raskar
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