Kaynes Technology India

“We expect this could take a couple of quarters for profitability to normalize and return to the levels as we had earlier committed to.”

“we are going to have a commercial revenue booking from this year, from third quarter and fourth quarter, and we are committed to that. And the project is on track.”

“Both Kaynes Semicon Unit 2 and Kaynes Circuit Chennai remain on the track to be operational by quarter 3 FY27, and we will continue to update you transparently on our progress every quarter.”

“The capex done in FY26 was INR473 crores for OSAT and INR324 crores for PCB.”

“Cash is not a constraint here. We want to make sure that the modular investment to make sure that we have a checks and balances on our capex spending and revenue.”

“This is the time, I think Kaynes is entering into this, and our commercial production is set to start from the next quarter, and our team is doing the last-minute finishing of the capital, and we are on track as per our commitment.”

“We said we will be funding for this capex for this year is about INR300 crores for OSAT, INR300 crores for PCB, and about INR250 crores for EMS business. We are on track for that.”

“We have a robust order book of around INR9,000 crores.”

“In the first quarter, our team has added more into the order book than what we have opened up or what we have delivered. So, very strong order book of more than about INR8,900 crores is in the system, and things are shaping up much faster.”

“we have taken a conscious decision of growing more in EMS business, which is our traditional and core business, and we have degrown in the smart metering business, not because we don't have capacity, not because we don't have business and orders, but we put our foot down saying that we need to make a collection first”

“we could able to successfully grow at 40% of plus as an overall, and EMS business alone about 48%.”

“I want to reiterate amongst all the metering companies which are doing assembling, we continue to be the number one installation done across the country than any other competition.”

“So as a stand-alone EMS business if you see, our growth is 53%, from INR480 crores of last year to this year of INR639 crores stand-alone EMS business.”

“My overseas entities if you take, from INR24 crores last year to INR102 crores, which has grown at 327%, there is a new acquisition that happened.”

“Along with this, we have onboarded global brands from Germany and France, one of the India's leading wireless communication companies, and a handful of other new logos together. Both our automotive team and non-automotive team are doing an excellent job of bringing more than in a quarter of about 90 days, and wherein we had working days of 75, we had more than 72 customers who have walked into our company”

“We are also happy to say that we have a recent engagement with one of the largest EV manufacturers globally in the automotive sector.”

“In fact, we are now very close to closing the deal, which once finalized would be a significant validation on the quality and scale of what we have built here.”

“And as far as PCB is concerned, our entire capacity is been requested by one large player, a global player. So, their trials are going on in our factory as on today, as we speak. They have also approved and given us a vendor code for that.”

“The first quarter the market has grown at 17% and we have grown at more than 45% in our -- 48% in our EMS business.”

“EBITDA for the quarter was INR147.6 crores, translating into an EBITDA margin of 15.6% and 31% year-on-year growth.”

“But when the growth is good, we also see the impacts on margins due to cost escalation driven by global supply chain issues and the macro factors, such as rise in the energy and the crude prices, the commodity prices, and the forex movement”

“The other income that used to come to us earlier from our QIP fund, which is where the investment has come in, is dropped about 2.5 points on our PBT or PAT”

“Other than that, if you look at, our depreciation has gone up with the various investments that's coming up where the revenue needs to come. And look ahead in the next two quarters, I think this will start coming back when we are going to generate revenues from our Semicon and Circuits”

“Other components, as you rightly said, the prices is going up by 30%-35%, and PCB is the one which is -- it's a challenging today because even order booking has gone with an advance payment.”

“In terms of working capital, even though the number of days has moved from 190 days for the quarter standalone, and if you look at the 12-month rolling, it is about 163 days”

“If you look at the total sales of about INR942 crores, the revenue that has come from the EMS business is INR854 crores, that is including GST, and the team did a remarkable job of collecting INR847 crores”

“However, the sales in our GridCrest business, which is the metering business, is about INR240 crores, whereas our collections is INR88 crores, which is what made us to have take a decision to stop productions and supplies”

“Though our inventory levels in terms of the working capital has gone up by about INR150 crores, as I said, this is a strategic decision that we took in the month of February, looking at the global market situation and the volatility.”

“the receivable from our leading electric vehicle two-wheeler customer, where on most of your right the concern, has come down significantly to below the INR100 crores”

“Even for the approved loan for our long-term capital in Semicon and Circuit, we have not taken at this point of time. They're going through the internal funding, you all know.”

“our acquisition at this point of time shaping up very nicely, a good EBITDA margin business, and we are hopeful that growth will accelerate into our overseas business going forward”

“On OSAT specifically, our partnership between Mitsui and Kaynes Semicon is a major milestone of our subsidiary. I congratulate our team for entering into such a strong partnership, and that gives Kaynes Semicon the opportunity to access the significant market opportunity in Japan.”

“Our first 3U satellite is currently in the prototype development phase, and we expect it to be ready to launch in middle of next year, once the required regulatory testing is complete.”

“We're now awaiting a confirmed launch date from ISRO on the PSLV or GSLV vehicle.”

“our subsidiary Crio Precision and Aerotech Technologies are entering into titanium gas bottle manufacturing to support their flight program, and DRDO has a similar requirement for gas bottle across several of their missile projects”

“This quarter, we completed a full mapping of skills and capabilities for every individual across the organization, and we have begun a special training program to prepare a high-potential talent to the next level of challenging leadership role.”

“Like the rest of the industry, we saw some disruption this quarter from the escalation in the West Asia affecting equipment imports and component logistics globally, not specific to Kaynes. This led to minor timing slippage in our OSAT and PCB ramp-up schedule.”

“The current situation in the places where we are doing the installation of meter, due to the natural calamity of flood, which has also impacted this”

“There is a sharp increase that's happening in the entire supply chain, which is leading to lead time for supply to the extent of more than 6 to 8 months in some categories”

“PCB is one component where it is getting into the global shortage at this point of time. The suppliers are demanding that we need to pay advance, and it takes about 6 to 8 months even for order booking.”

“Yes, its a difficult year. This year is a difficult year, but I don't think for us whatever we have planned, we will try and meet the requirement. But it is not going to be an easy year. It is going to be a tough year.”

“Our total revenue stood at INR946 crores, reflecting an year-on-year growth of 40%, which is largely driven by EMS business.”

“I'm happy to say that that business also helped us to come to some normalcy, and about 30 to 40% of the business has been executed in the last quarter”

“Going forward, we'll also be providing you the rolling 12-month view of these metrics on receivables or payables or net working capital rather than the quarterly average”

“We added one of the India's second largest two-wheeler electric vehicle manufacturer to our existing EV portfolio. The team did a remarkable job of completing the product development, testing in a record of about 8 months, and now we started serial supplies to them.”

“We also received, happy to say that we also received the government subsidy to the tune of INR170 crores in OSAT business till July 26.”