Kaynes Technology India Ltd
NSE:KAYNES
Kaynes Technology India Ltd
Nestled in the bustling city of Mysore, Kaynes Technology India Ltd. emerges as a pivotal player in the realm of electronic manufacturing services (EMS), a sector often regarded as the backbone of the technological world. Founded with a vision to bridge the gaps in the electronics value chain, Kaynes Technology specializes in the end-to-end solutions of designing, engineering, and manufacturing electronics systems. From humble beginnings, the company has steadily evolved to cater to a diverse clientele spanning sectors such as industrial, automotive, medical, and IT. By providing extensive design services, prototyping, and electronic manufacturing, Kaynes ensures that innovative ideas seamlessly transform into tangible products. This integrated approach not only amplifies efficiency but also significantly reduces the time-to-market for its customers, making it an indispensable partner in the fiercely competitive electronics marketplace.
At the heart of Kaynes Technology’s operational model lies a robust framework of vertically integrated services, which is crucial for revenue generation. By offering comprehensive solutions, the company capitalizes on multiple revenue streams within the product lifecycle. Its revenue model predominantly relies on Original Equipment Manufacturer (OEM) contracts, where it manufactures products based on the designs provided by these firms. Additionally, it extends its expertise in Original Design Manufacturing (ODM) services by creating customized designs that meet the specific demands of different industries. This blend of OEM and ODM services not only diversifies its revenue avenues but also cements its status as a well-rounded EMS provider. Through strategic investments in cutting-edge technology and a relentless focus on quality assurance, Kaynes Technology continues to thrive, marking its presence both domestically and internationally while securing a robust and enduring position in the electronics supply chain.
Nestled in the bustling city of Mysore, Kaynes Technology India Ltd. emerges as a pivotal player in the realm of electronic manufacturing services (EMS), a sector often regarded as the backbone of the technological world. Founded with a vision to bridge the gaps in the electronics value chain, Kaynes Technology specializes in the end-to-end solutions of designing, engineering, and manufacturing electronics systems. From humble beginnings, the company has steadily evolved to cater to a diverse clientele spanning sectors such as industrial, automotive, medical, and IT. By providing extensive design services, prototyping, and electronic manufacturing, Kaynes ensures that innovative ideas seamlessly transform into tangible products. This integrated approach not only amplifies efficiency but also significantly reduces the time-to-market for its customers, making it an indispensable partner in the fiercely competitive electronics marketplace.
At the heart of Kaynes Technology’s operational model lies a robust framework of vertically integrated services, which is crucial for revenue generation. By offering comprehensive solutions, the company capitalizes on multiple revenue streams within the product lifecycle. Its revenue model predominantly relies on Original Equipment Manufacturer (OEM) contracts, where it manufactures products based on the designs provided by these firms. Additionally, it extends its expertise in Original Design Manufacturing (ODM) services by creating customized designs that meet the specific demands of different industries. This blend of OEM and ODM services not only diversifies its revenue avenues but also cements its status as a well-rounded EMS provider. Through strategic investments in cutting-edge technology and a relentless focus on quality assurance, Kaynes Technology continues to thrive, marking its presence both domestically and internationally while securing a robust and enduring position in the electronics supply chain.
Strong Revenue Growth: Kaynes Technology reported 9-month revenue of INR 23,837 million, up 37% year-on-year, driven mainly by EMS business.
Margin Expansion: EBITDA margin rose to 15.9%, an increase of 190 basis points YoY, with operational EBITDA up 55% YoY.
Order Book Health: The order book stands at INR 90,000 million, representing about 1.5 years of forward revenue, and is growing at approximately 50% per annum.
Working Capital Focus: Management acknowledged elevated working capital (139 days), but reaffirmed guidance to reduce it to 85 days by March '26, citing higher Q4 sales and initiatives to improve receivables.
Guidance Adjustment: Revenue guidance for the year was revised down to INR 4,100 crores from INR 4,400 crores, mainly due to the deferral of a large railway order (Kavach) worth INR 3 billion.
Cash Flow Outlook: Operating cash flow was slightly negative for 9 months (minus INR 55 crores), but management expects positive OCF for the full year.
Strategic Progress: OSAT facility at Sanand is now operational with government approvals in place, and the HDI PCB initiative is ramping up.
Long-term Target Reiterated: Management reiterated its $1 billion revenue target for FY '28, supported by EMS, OSAT, and PCB businesses.
