Earnings Call Details
• Date: July 27, 2024
• Announcement: Transcript available on July 31, 2024
• Key Management: Ramesh Kannan (Founder and Managing Director), Jairam Sampath
Financial Performance
• Revenue: INR 5,040 million (70% year-on-year growth)
• EBITDA: INR 669 million (66% increase)
• Profit After Tax: INR 508 million (106% increase)
• Order Book: INR 50,386 million
• Net Debt: INR 5,771 million
• ROE: 17.4%, ROC: 18.8%
Growth and Investments
• Revenue Target for FY2025: Exceeding INR 30,000 million
• EBITDA Margin Target: 15%
• Investments: New facility in Telangana, land acquisition in Gujarat
• Sector Focus: Industrial, EV, aerospace, railways
Sector Insights
• Industrial Sector: Strong demand for smart meters; potential for increased export orders
• Medical Equipment: Slower growth but new significant contract expected to enhance order book
• Aerospace and Defense: Strong order inflows with multi-year contracts
Operational Challenges
• Receivables Pressure: Temporary due to advanced purchases
• Inventory Levels: Higher due to election-related disruptions
• Net Working Capital Cycle: Currently at 120 days, aiming for improvement
Future Projections
• OSAT Revenue Target: Exceeding INR 3,500 crores by FY'30
• $1 Billion Revenue Target: By FY'28, including contributions from OSAT and PCB
• Capacity Utilization: Expected to reach 70%-80% by year-end
Strategic Discussions
• Export Orders: Currently 15% of order book, expected to rise to 20-25% by FY'26
• Component Sourcing: 60% imported, 40% locally manufactured
• Government Support: Anticipated for domestic manufacturing and export growth
Conclusion
• Management Outlook: Optimistic about growth prospects across various sectors, with a focus on strengthening customer relationships and operational capacity.

Earnings Call Notification
• Date: May 21, 2024
• Transcript availability for Q4 FY'24 earnings call held on May 17, 2024.
Financial Performance
• Annual Revenue: ₹18,046 million (60% YoY increase)
• Profit After Tax: ₹1,833 million (93% growth)
• Q4 Revenue: ₹6,373 million (75% YoY increase)
• EBITDA:
• Q4: ₹952 million (60.5% increase)
• Annual: ₹2,542 million (51% increase)
• Margins:
• Q4: 14.9%
• Annual: 14.1%
Operational Highlights
• Current Order Book: ₹41,152 million
• Working Capital Cycle: Reduced to 83 days
• Facility Expansion: New integrated facility in Chamarajanagar and operational capabilities in Pune.
• Future Growth Target: Over 60% revenue growth for FY'25.
Strategic Focus
• Balancing high-volume, lower-margin sectors (automotive, industrial) with higher-margin sectors (aerospace, medical).
• Plans for international expansion and enhancing production capabilities through US acquisition.
Revenue Guidance and QIP Utilization
• ₹14 billion raised through QIP earmarked for OSAT and high-density interconnection PCB projects.
• Current revenue guidance based solely on EMS business, targeting 60% growth.
Market Outlook
• Anticipated average order book execution period: 1.25 years.
• Projected margin improvement of 100 basis points for FY'25.
• Confidence in moderate competition driven by domestic demand.
Growth Drivers
• Significant contributions expected from the automotive sector.
• Strong demand for smart meters and high-performance computing servers.
• Ongoing projects in aerospace, defense, and railway sectors.
Working Capital Management
• Aim to reduce net working capital days from 83 to 70-72 by FY'25.
Conclusion
• Kaynes Technology remains committed to reaching $1 billion in revenue by FY'28, with expectations of improved margins as high-tech segments mature.

Earnings Performance
• Date of Call: January 31, 2024
• Revenue Growth:
• Q3 FY24: INR 5,093 million (76% YoY)
• Nine months: INR 11,673 million (53% increase)
• EBITDA:
• Q3 FY24: INR 699 million (70% YoY)
• Nine months: INR 1,589 million (46% increase)
• PAT:
• Q3 FY24: INR 452 million (98% YoY)
• Nine months: INR 1,022 million (89% increase)
Strategic Focus
• Sectors of Demand: Electric vehicles, railways, and advanced technology partnerships (cybersecurity, medical applications).
• Acquisition: U.S. acquisition to enhance market presence.
• Future Growth: Confidence in navigating challenges and capitalizing on opportunities in the electronics industry.
Financial Management
• Net Working Capital: Decreased from 135 to 117 days, with further reductions expected.
• Capex Plans: Sufficient funds from IPO to support projected 45% growth in ESDM business.
Project Timelines
• New Projects: OSAT and high-density interconnection PC boards expected to generate revenue by FY27 and FY28.
• Exports: Currently 15-20% of order book, expected to increase to 25% next year.
Inventory and Supply Chain
• Inventory Management: Anticipated reduction in net working capital through decreased inventory levels.
• IT Hardware Initiatives: Collaborations with government for high-performance computing servers.
Industrial EV Segment
• Client Engagement: Working with leading Indian clients on charging infrastructure.
• OSAT Business: Focus on branded semiconductors and advanced packaging technologies.
Future Developments
• Kavach Technology: Ongoing development with commercial production expected in 1 to 1.5 years.
• Operating Leverage: Expected to improve gross margins and reduce costs.
Concerns and Responses
• Gross Margin Decline: Attributed to reduced contributions from medical, IoT, and consumer products.
• Subsidy Approvals: Emphasis on securing government support before significant investments.
Conclusion
• Optimism: Confidence in meeting timelines and maintaining progress despite external uncertainties.
• Engagement: Call concluded with an invitation for further questions and gratitude for participation.

Earnings Call Notification
• Date: November 4, 2023
• Transcript available on the company's website
• Discussed financial results for Q2 and half-year ending September 30, 2023
Key Financial Highlights
• Revenue Growth:
• Q2 revenue: INR 3,608 million (32% YoY growth)
• First half revenue: INR 6,580 million (39% YoY growth)
• Profitability:
• EBITDA: INR 488 million (13% increase)
• Profit After Tax (PAT): INR 323 million (54% YoY rise)
• Future Projections:
• Revenue target for the year: INR 1,700 to 1,800 crores
• Expected EBITDA margin recovery to around 15%
Strategic Developments
• Technology Transfer Agreement: With CDAC for high-performance computing servers
• Local Manufacturing: Emphasis on reducing import dependency
• Semiconductor Facility: Awaiting government approval for a facility in Telangana
Sector Expansion
• Electric Vehicle (EV) Sector:
• Expanded client base, serving multiple manufacturers
• Anticipated EV revenues to account for 10-20% of total revenues
• High-Performance Computing (HPC):
• Successful pilot leading to future procurements
• Potential partnerships for server manufacturing
Diversification and Growth
• Increasing contributions from IT, IoT, aerospace, and medical sectors
• Focus on high-tech products for superior margins
Operational Insights
• Inventory Management: Temporary increase affecting cash flow, but improvements expected
• Railway Sector Opportunities: Key areas include electronic interlocking and Vande Bharat production
OSAT and PCB Initiatives
• OSAT Facilities: Planned in Telangana and Karnataka for higher-end capabilities
• PCB Focus: Emphasis on high-tech, high-mix PCBs to differentiate from competitors
Working Capital and Incentives
• Similar working capital requirements for new clients with improved management
• Progress on Production-Linked Incentives (PLI) with expectations for revenue generation
Conclusion
• Management optimistic about future growth and revenue inflows, particularly from high-value IT hardware server deals.

Earnings Call Announcement
• Date: August 4, 2023
• Transcript available on the company's website
• Hosted by IIFL Securities
• Key participants: Ramesh Kannan (Founder & MD), Jairam Sampath (CFO)
Financial Performance Highlights
• Revenue Growth: 49% YoY increase to Rs. 2,972 million
• EBITDA: Rs. 403 million, reflecting 64% growth
• PAT: Increased 145% to Rs. 246 million, PAT margin at 8.3%
• Order Book: Robust order book of Rs. 30,004 million
Strategic Initiatives
• Focus on sectors: automotive, IT infrastructure, railway, and OSAT (Outsourced Semiconductor Assembly and Test)
• Plans for a new facility in Karnataka with an investment of Rs. 1,493 million
• Emphasis on high-tech, low to medium volume sectors for better margins
Production-Linked Incentive (PLI) Scheme
• Trials have begun; billing expected in the upcoming quarter
• Potential growth in the telecom sector noted
Capital Expenditure (CAPEX) Plans
• Total CAPEX allocation: INR 960 crores
• Chamarajanagar facility nearing completion for high-end PCB manufacturing
• Expected CAPEX of Rs. 100 to Rs. 200 crores for electronic manufacturing in the coming years
Market Opportunities and Challenges
• Railway signaling business growth with a new multinational client
• Focus on maintaining margins in consumer electronics
• Concerns about margin sustainability amid increasing EMS sector competition
Capacity and Growth Projections
• New plant could enable revenue of around Rs. 3,000 crores
• Current capacity allows for approximately Rs. 2,000 crores
• Chamarajanagar plant projected to generate Rs. 1,000 crores in peak revenue
Working Capital and Cash Flow Management
• Plans to improve efficiency by reducing working capital days
• Use of factoring to enhance cash flow
• Optimism about improving cash flow conversion rates by year-end
Conclusion
• Management expressed commitment to monitoring cash flow generation and return on capital
• Call concluded with thanks to participants and acknowledgment of connectivity issues.

Earnings Call Overview
• Date: May 20, 2023
• Host: Ambit Capital
• Key Management: Ramesh Kunhikannan (Founder & MD), Jairam Sampath (CFO)
• Transcript availability announced for Q4 FY23 financial results.
Financial Highlights
• Q4 FY23 Revenue: INR 3,646 million (53% YoY increase)
• Annual Revenue: INR 11,261 million (59% growth)
• EBITDA FY23: INR 1,683 million (up from INR 937 million)
• Profit After Tax (PAT): INR 952 million (compared to INR 417 million in FY22)
Expansion Plans
• Significant capital expenditures planned for facility upgrades and new projects.
• Focus on enhancing production capacity to meet demand.
Customer and Market Insights
• New significant clients added in various sectors, including EV, medical equipment, and semiconductors.
• Ongoing work with defense and aerospace customers.
Working Capital Management
• Strategies to improve working capital despite higher inventory levels.
• Aim to reduce working capital days from around 99 to the 70s in the next couple of years.
Revenue and Profitability Targets
• Projected revenue of INR 1,700 crores for FY24.
• Current order book valued at INR 2,650 crores, representing about 1.5 years of orders.
Supply Chain Challenges
• Delays in critical components due to global tensions and semiconductor capacity issues.
• Efforts to indigenize production, particularly in PCB manufacturing.
Future Opportunities
• Anticipated growth in IT hardware sector and data center initiatives.
• Plans for CAPEX of INR 260 crores to triple production capacity, targeting revenues between INR 2,700 and INR 3,000 crores.
Demand Trends
• Varying demand across sectors; high-volume consumer sectors face short-term fluctuations.
• Long-term growth trends in non-consumer sectors, particularly telecom and medical.
Export Growth and PLI Programs
• Current exports account for 15-20% of the order book; expected to increase in the coming years.
• Participation in Production Linked Incentives (PLI) programs for telecom and white goods sectors.
R&D and Technological Developments
• R&D expenses for FY23 were approximately 1.1% to 1.2% of sales, with expectations for a slight increase.
• Plans to manufacture high-quality, multi-layer PCBs in India.
Conclusion
• Management expressed optimism about future growth and encouraged further engagement from participants.

Earnings Call Overview
• Date: February 7, 2023
• Hosted by: DAM Capital Advisors
• Transcript available on the company's website
Financial Performance Highlights
• Quarterly Revenue: INR 2,917 million
• Year-on-Year Growth: 57.16%
• Quarter-on-Quarter Growth: 6.52%
• Year-to-Date Revenue: INR 7,655 million
• Year-on-Year Growth: 62.22%
• EBITDA: INR 411.58 million
• Year-on-Year Increase: 87.24%
• EBITDA Margin: 14.24%
• PAT: INR 228.69 million
• Year-on-Year Increase: 112.87%
• PAT Margin: 7.9%
• Order Book: INR 25,579 million
Sector Performance
• Strong demand in:
• Automotive
• Railway
• Industrial sectors
• Anticipated growth in:
• Aerospace
• Medical segments
Management Insights
• Customer Additions: New clients from industrial sectors relocating from China to India.
• Capital Allocation: Funds from IPO for facility expansions and investments.
Future Projections
• Fiscal Year 2023 Guidance: Revenue of INR 1,200 Crore, PAT around 8.6%.
• Fiscal Year 2024 Target: Revenue of INR 1,700 Crore with improved margins.
Operational Challenges
• Concerns about:
• Sustainability of margins in PCBA business.
• High working capital cycle (135 days).
• Management's response:
• Long-term order commitments support higher margins.
• Steps to reduce working capital needs.
Capacity and Expansion Plans
• New facility in Chamarajanagar expected to start output in April.
• Ongoing discussions with European companies for future orders.
Production-Linked Incentive (PLI) Updates
• Two PLIs confirmed in telecom and air conditioning sectors.
• Expected benefits in FY '24.
Working Capital Management
• Increased receivables at 98 days due to longer cash conversion cycles.
• Efforts to improve cash flow through supply chain financing.
Capital Expenditure Plans
• FY '24 investment projected at INR 250 crores, focusing on operationalizing projects.
Market Adaptation
• Strategies to adapt to market conditions, including impacts from China's reopening.
• Focus on energy sector and green technologies for future growth.
Customer Dynamics
• 80% of business from existing clients.
• Long customer lifecycle, with significant opportunities for import substitution.
Revenue Breakdown
• Automotive: 39%
• Industrial: 26%
• Railways: 13.5%
• Exports: 20% of the order book
Margin Insights
• Export margins generally higher than domestic.
• Expected return on capital expenditure projected to improve by FY '24.
Closing Remarks
• Ramesh Kannan thanked participants for attending the earnings call.