Shares of a leading semiconductor company surged 9 percent in today’s trading session after the firm reported a robust 75 percent quarter-on-quarter increase in net profit and revenue growth, signaling strong demand and operational performance.
With a market capitalization of Rs.42,710 crores, the shares of Kaynes Technology India Limited reached an intra-day high of Rs.6,834.50 per share on Friday, rising 9 percent from its previous day’s closing price of Rs.6,297.50 apiece.
Financial Performance
Kaynes Technology India Limited experienced a significant rise fueled by strong net profit and revenue growth, as reflected in its latest financial results. In Q4 FY25, the company reported revenue of Rs.1,004.9 crore, up 50.8 percent from Rs.666.7 crore in Q4 FY24. On a sequential basis, revenue rose by 46.5 percent compared to Rs.685.8 crore in Q3 FY25, highlighting strong operational momentum.
Net profit for the quarter came in at Rs.116.2 crore, representing a 43.1 percent increase from Rs.81.2 crore in the same quarter last year. Compared to Q3 FY25, net profit jumped 75 percent from Rs.66.4 crore, indicating a significant boost in profitability.
On a yearly comparison, the company reported Rs.2,828.7 crore in FY25, up 52 percent from Rs.1,860.5 crore in FY24. The net profit rose to Rs.293.4 crore in FY25, up 60 percent from Rs.183.2 crore in FY24.
As of the latest update, the company’s order book stood at Rs.6,596.9 crores, significantly higher than Rs.4,115.2 crores recorded in March 2024, indicating strong future demand. EBITDA for the period was Rs.410.7 crores, marking a 62 percent year-on-year growth, while the EBITDA margin improved by 101 basis points to 15.1 percent.
The PAT margin rose to 10.8 percent, up by 62 basis points year-on-year, reflecting improved profitability. Net worth increased to Rs.2,837.3 crores from Rs.2,484.8 crores as of March 2024. Meanwhile, net debt rose to Rs.681.3 crores, up from Rs.217.7 crores during the same period, indicating a shift in the capital structure.
The company has a Return on Capital Employed (ROCE) of 19.2 percent and a Return on Equity (ROE) of 19.4 percent. Its Price-to-Earnings (P/E) ratio stands at 156.04, higher than the industry average of 87.25. Furthermore, the company maintains a current ratio of 5.67, a debt-to-equity ratio of 0.2, and an Earnings Per Share (EPS) of Rs.40.37.
In FY 2025, the company generated the largest portion of its revenue, 55 percent, from the Industrial segment including electric vehicles, showing a strong focus in this area. The Automotive segment contributed 26 percent to the total revenue, maintaining its significance in the company’s business mix. Other verticals included Railways with 8 percent, Medical with 7 percent, and IoT, IT, Consumer, and other sectors making up 2 percent.
Revenue from Aerospace, Outer-space, and Strategic Electronics accounted for 1 percent. This distribution highlights the company’s diversified presence across several important and growing industries.
Semiconductor Developments
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.
Kaynes Semicon is set to deliver India’s first packaged semiconductor chip samples by July 2025. The OSAT facility in Sanand, Gujarat is nearing completion, with machinery and clean rooms expected to be installed by early May. Qualification testing will begin in June, followed by deliveries to US-based Alpha and Omega Semiconductor.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
