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(28 Jan 2025, 12:36)

Kaynes Tech shares plunge after revenue guidance cut

Kaynes Technology India dropped 18.65% to Rs 4286.25 after the company revised its revenue growth guidance for the current fiscal year downwards.


The company reported a strong 47% jump in net profit to Rs 66.5 crore in the December quarter (Q3FY25) from Rs 45.2 crore in the same period last year. A substantial portion of this profit growth can be attributed to a 161% YoY surge in the company's other income to Rs 24.64 crore in Q3FY25.

Revenue grew by nearly 30% to Rs 661.2 crore in Q3FY25, up from Rs 509.30 crore in the corresponding quarter of the previous year.

EBITDA rose 35% YoY to Rs 94 crore in Q3FY25. EBITDA margin improved to 14.2% in Q3FY25 compared to 13.7% in the same period last year.  

The company's order book surged from Rs 3798 crore in Q3FY24 to Rs 6047.10 crore in Q3FY25.

However, the management lowered its revenue guidance for FY25 to Rs 2,800 crore from the earlier target of Rs 3,000 crore. This downward revision was attributed to delays in executing certain orders in the industrial segment worth Rs 100 crore, which are now expected to be completed in the March quarter.

The company's net debt stood at Rs 599.6 crore as of December 2024, higher than 244.9 crore as of December 2023.

Ramesh Kunhikannan, managing director & promoter, Kaynes Technology India said: "We continue to invest in high potential & high margin segments and expect these to help us sustain the growth momentum and make Kaynes, a differentiated player in this segment. We are consistently adding new capabilities, new geographies and looking to expand our customer base, with specific focus on large customers and high growth segments."

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India, having capabilities across the entire spectrum of Electronics System and Design Manufacturing (ESDM) services. It has experience in providing Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support for major players in the Automotive, Industrial, Aerospace, Outer-space, Strategic electronics, Medical, Railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments. The company also has Service centres in Cochin and Mumbai, catering to Railway, Aerospace, Defence and Industrial Clients.


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