Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — FY2023 Earnings Presentation
34 slides from Kaynes Technology India's earnings presentation, May 17, 2023
Slide 1: Exchange filing cover letter
May 16, 2023 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14th floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock Code 3 543664 Stock Code
Slide 2: Kaynes Technology India Limited Earnings Presentation May 2023
Product Design ODM OEM IoT Solutions and Engineering Kaynes Technology India Limited Earnings Presentation May 2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Kaynes Technology Limited (“Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminate
Slide 4: Financial Highlights
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Slide 5: FY23 Results Snapshot (Consolidated)
FY23 Results Snapshot (Consolidated) ₹ 26,482 mn ₹ 11,261 mn ₹ 1,683 mn 14.9% Order Book Revenue EBITDA EBITDA Margin ₹ 15,166 mn in FY22 59% YoY 80% YoY + 168 bps YoY ₹ 349 mn ₹ 952 mn 8.5 % ₹ 473 mn Finance Cost Profit After Tax PAT Margin Net Debt 37% YoY 128% YoY +255 bps in YoY ₹ 1,480 mn in FY
Slide 6: Q4FY23 Results Snapshot (Consolidated)
Q4FY23 Results Snapshot (Consolidated) ₹ 3,646 mn ₹ 594 mn 16.3% Revenue EBITDA EBITDA Margin 53% YoY 48% YoY 16.8% in Q4FY22 ₹ 81 mn ₹ 413 mn 11.3% Finance Cost Profit After Tax PAT Margin 14% YoY 108% YoY 8.3% in Q4FY22 5
Slide 7: Proven record of consistent financial performance (1/5)
Proven record of consistent financial performance (1/5) Revenue (₹ Mn) EBITDA (₹ Mn) 3,646 2,891 594 2,732 432 412 2,385 400 1,993 246 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 16.8% 16.3% 413 15.8% 14.3% 12.3% 229 199
Slide 8: Proven record of consistent financial performance (2/5)
Proven record of consistent financial performance (2/5) Revenue (₹ Mn) EBITDA (₹ Mn) 11,261 1,683 +45% +60% 7,062 937 4,206 3,682 413 409 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 14.9% 952 13.3% 11.2% 9.7% +117% 417 94 97 FY20 FY21 FY22 FY23 FY20
Slide 9: Proven record of consistent financial performance (3/5)
Proven record of consistent financial performance (3/5) ROE (%) ROCE (%) 24.5% 24.9% 24.4% 24.2% 14.4% 13.5% 10.5% 8.1% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Net worth (Rs mn) Gross Block (Rs mn) 9,577 1,812 1,473 1,142 916 2,018 1,365 958 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROCE and ROE are a
Slide 10: Proven record of consistent financial performance (4/5)
Proven record of consistent financial performance (4/5) Inventory Days Receivable Days 136 137 108 93 101 104 83 69 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Payable Days Net Working Capital Days 122 121 117 113 98 99 86 73 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 9
Slide 11: Proven record of consistent financial performance (5/5)
Proven record of consistent financial performance (5/5) Net Debt (₹ Mn) Net Debt/EBITDA (x) 1,480 3.2 3.1 1,315 1,252 1.6 473 0.3 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Net Debt/Equity (x) Asset Turnover ratio (x) 1.4 6.2 4.8 0.9 4.0 3.7 0.7 0.0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Net debt is a
Slide 12: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (Rs mn) Q4FY23 Q4FY22 YoY Chg FY23 FY22 YoY Chg Revenue from operations 3,646 2,385 53% 11,261 7,062 59% Raw material cost 2453 1,627 51% 7,801 4,894 59% Employee expenses 217 150 45% 771 602 28% Other expenses 382 207 84% 1,006 629 60% EBITDA 594 4
Slide 13: Revenue Mix – FY23 vs FY22
Revenue Mix – FY23 vs FY22 Revenue across verticals FY23 FY22 9% 8% 5% Automotive 6% Automotive Industrial 38% Industrial 34% 10% Aerospace, Defence & other 12% Aerospace, Defence & other Medical Medical Railways Railways 10% 6% IoT/IT IoT/IT 2% 3% Consumer Consumer 27% 30% Revenue across segments F
Slide 14: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (Rs mn) FY20 FY21 FY22 FY23 Gross Block (tangible assets) 850 979 1,112 1,451 Accumulated Depreciation 348 408 473 549 Net Block (tangible assets) 502 571 640 902 Intangible assets 138 267 352 426 Other non-current assets 236 165 369 552 Total non-current ass
Slide 15: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Particulars (Rs mn) FY20 FY21 FY22 FY23 Cash flow from operating activities Profit before tax 113 109 590 1260 Adjustment for non-operating items 314 333 386 452 Operating profit before working capital changes 427 442 976 1713 (Increase)/ decrease in inventories -2
Slide 16: Expansion Update
Expansion Update Manesar (Haryana) Chamrajanagar (Karnataka) 120k built up space taken Work going on at full swing Planned operationalization Phase 1 to be by Q1FY24 operationalize by Q2FY24 Pune (Maharashtra) Upgradation existing facilities Leased place Mysore Unit 1 & 2, Manesar To be operationali
Slide 17: Utilization of IPO fund (Rs mn)
Utilization of IPO fund (Rs mn) Amount to be Utilized as Utilization up to Utilization up to Objects of the Issue as per Prospectus st st per Prospectus (₹ Mn) 31 March 2023 (₹ Mn) 31 March 2023 (%) Repayment/ prepayment, in full or part, of certain 1,300 1,300 100% borrowings availed by our Company
Slide 18: Company Overview
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Slide 19: Company Overview
Company Overview Over 3 decades of experience Leading integrated and IoT enabled Caters to multiple industry verticals - in providing conceptual design, process solutions provider, having capabilities automotive, aerospace and defense, engineering, integrated manufacturing across the entire spectrum
Slide 20: Leading ESDM player with end-to-end Design & Engineering capabilities
Leading ESDM player with end-to-end Design & Engineering capabilities… Service offering across entire customer value chain Design Industrialization Manufacturing Product End-of-life services services services maintenance services services Prototype OEM Concept to Design manufacturing manufacturing R
Slide 21: Enabled with IoT solutions
… Enabled with IoT solutions End-to-end connected asset platform, including business applications, managed cloud service, and ODM Device solution Capture Cloud Connect Control KPTR Services – Client Business Apps Network: IP and Non-IP Legacy / New Systems KPTR Applications Gateway & Devices Connect
Slide 22: Diversified Product Portfolio
Diversified Product Portfolio Automotive Industrial Aerospace, Defense, Medical Railways IoT / IT Outerspace & Nuclear and others Cluster PCBA Smart Energy Meter Air Data Sensor Ventilator, Endoscopy cart AFTC & Interlocking Eval Kits & Data Logger Head/Tail/Fog/DRL PCBA Street light controller Miss
Slide 23: Internationally certified manufacturing facilities backed by a strong supply chain
Internationally certified manufacturing facilities backed by a strong supply chain R&D and Certifications Capacity for manufacturing at scale augmented by technical capabilities Focused on development of new products and improvement o 11 SMT Lines existing products 1 Parwanoo o 57 THD Lines Dedicate
Slide 24: Well diversified business profile
Well diversified business profile Revenue across verticals FY23 FY23 Revenue across segments 5% 3% 9% Automotive 30% Industrial 6% OEM- Box Build Aerospace, Defence & other 38% OEM- PCBA Medical 12% ODM Railways Product Engineering and IoT solutions IoT/IT 6% Consumer 2% 62% 27% Revenue across geogr
Slide 25: Marquee customer base
Marquee customer base Industry Key Customers Long standing relationship with clients Leading global mfg of electronic Average business period relationship of top 10 customers in each vertical3 instruments and electromechanical devices Industrial 10 10 11 8 7 7 7 Railways Automotive Automtive Industr
Slide 26: Business Evolution and Key Milestones
Business Evolution and Key Milestones o Established o Started exporting sensor manufacturing facility at electric assembly to Manesar Phoenix, Arizona o Got approval for o Established unit in o Collaboration with o Growth in aerospace, defense, o Established as a setting up hardware o Established Ka
Slide 27: The Kaynes Advantage - Key Strengths
The Kaynes Advantage - Key Strengths Well diversified business profile across industry End to end design and Internationally Longstanding verticals : Address the engineering capabilities recognized and certified relationships with top Low Volume, High Value enabled with IoT manufacturing facilities
Slide 28: Strategy
Strategy 27
Slide 29: Well positioned to capitalize on strong industry tailwinds
Well positioned to capitalize on strong industry tailwinds ESDM –a global trillion dollar industry by ‘25 India all set to be a large ESDM Market 2021 – USD 880 Bn 2026E – USD 1,145 Bn FY22 Indian ESDM Market, INR Bn Indian Electronics 33% market 9,263 35% India Domestic 16% 14% Electronics 5,376 5,
Slide 30: The way forward
The way forward Focus on full product / Continue to diversify Continue expanding Expand and set up Improve operational box build capabilities product portfolio and customer base to focus manufacturing facilities effiency and pursue expand across verticals on large customers inorganic growth o Cater
Slide 31: Application specific product roadmap
Application specific product roadmap Medical Devices Aerospace & Defense Space Information Technology Diagnostic, lab, surgical & other Avionics, Communication Components of space Vehicles & High density boards & other equipment LRUs Sub-system products Industrial Consumer TFT Displays Green Energy
Slide 32: Experienced Board of Directors and Leadership Team
Experienced Board of Directors and Leadership Team Ramesh Kunhikannan Anup Kumar Bhat Managing Director & Promoter Independent Director 33 years of experience in the EMS industry Several years of experience Associated with the company since inception Ex. VP Ashok Leyland (subsidiary support) B.Tech
Slide 33: Shareholder Information
Shareholder Information Key Institutional Investors % Holding Shareholding Pattern NSE Ticker KAYNES 15.5% BSE Ticker KAYNES | 543664 Promoter & Promoter Group 4.7% IPO Listing Date 22nd November 2022 Mutual Funds 8.2% AIF Share Price (₹)* 750.95 Foreign Portfolio Investors 4.2% 63.6% Foreign Compan
Slide 34: Thank You
Thank You COMPANY Kaynes Technology India Limited Jairam P Sampath, Whole-time Director & Chief Financial Officer Email: ir@kaynestechnology.net Neeraj Vinayak AVP Investor Relations Email: neeraj.vinayak@kaynestechnology.net CIN: L29128KA2008PLC045825 Website: www.kaynestechnology.co.in INVESTOR RE
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