Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — Q3 FY24 Earnings Presentation
41 slides from Kaynes Technology India's earnings presentation, Jan 30, 2024
Slide 1: Exchange filing cover letter
January 30, 2024 The Secretary The Secretary National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, Plot no. C/1, G Block, Corporate Relationship Dept., Bandra-Kurla Complex, 14th floor, P. J. Tower, Bandra (E), Dalal Street, Fort Mumbai - 400 051 Mumbai - 400 001 Stock Code – KAYNES Stock C
Slide 2: Kaynes Technology India Limited Earnings Presentation January 2024
Kaynes Technology India Limited Earnings Presentation | January 2024
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Kaynes Technology India 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 disse
Slide 4: Quarterly Financial Highlights
Quarterly Financial Highlights
Slide 5: Q3FY24 Results Snapshot (Consolidated)
Q3FY24 Results Snapshot (Consolidated) ₹ 37,890 mn ₹ 5,093 mn ₹ 699 mn 13.7% Order Book Revenue EBITDA EBITDA Margin ₹ 26,482 mn in FY23 76% YoY 70% YoY - 52 bps YoY ₹ 452 mn 8.9 % ₹ 24,599 mn ₹ 2,449 mn Profit After Tax PAT Margin Networth Net Debt 98% YoY +96 bps YoY ₹ 9,577 mn in FY23 ₹ 473 mn in
Slide 6: Consistent quarterly financial performance
Consistent quarterly financial performance Revenue (₹ Mn) EBITDA (₹ Mn) 5,093 699 594 3,646 3,608 488 2,891 2,972 412 403 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 16.3% 452 413 14.3% 13.5% 13.5% 13.7% 323 229 246 Q3FY
Slide 7: Diversified Revenue Mix
Diversified Revenue Mix Revenue across verticals 9MFY24 9MFY23 7% 14% 11% Automotive 31% Automotive Industrial incl EV 3% Industrial incl EV 38% 11% 2% Aerospace, Outerspace & Aerospace, Outerspace & Strategic electronics Strategic electronics 6% Medical Medical Railways Railways 2% IoT / IT, Cons a
Slide 8: Consistent quarterly financial performance
Consistent quarterly financial performance Gross Block (₹ Mn) Asset Turnover ratio (x)1 2,816 6.3 5.5 1,609 9MFY23 9MFY24 9MFY23 9MFY24 Debt/Equity (x) Networth (₹ Mn) 24,599 0.3 9,164 0.2 9MFY23 9MFY24 9MFY23 9MFY24 1 – Annualized: The above data is based on unaudited financial statements 7
Slide 9: Consistent quarterly financial performance
Consistent quarterly financial performance Net Working Capital Days Inventory Days 135 117 120 115 9MFY23 9MFY24 9MFY23 9MFY24 Receivable Days Payable Days 91 65 72 68 9MFY23 9MFY24 9MFY23 9MFY24 Net working capital is calculated as average inventory days plus average receivable days less average pa
Slide 10: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (₹ Mn) Q3 FY24 Q3 FY23 Y-o-Y 9MFY24 9MFY23 Y-o-Y Revenue from operations 5,093 2,891 76% 11,673 7,615 53% Raw material cost 3,854 2,029 90% 8,513 5,348 59% Employee expenses 249 191 30% 708 554 28% Other expenses 292 260 12% 863 624 38% EBITDA 699 4
Slide 11: Company Overview
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Slide 12: Company Overview
Company Overview Over 3 decades of experience in providing conceptual design, process engineering, integrated manufacturing and life-cycle support to OEMs Leading integrated and IoT enabled solutions provider, having capabilities across the entire spectrum of ESDM1,2 Caters to multiple industry vert
Slide 13: 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 14: Applications 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 15: Diversified product portfolio
Diversified product portfolio Aerospace, Outerspace & IOT/IT, Cons and others Automotive Industrial & EV Railways Medical Strategic electronics Cluster PCBA Engine Control Panel UM71 - Receiver Endoscopy cart & ICP HH Sonar Bar Code sensor module Scanner & RFID gateway LED Headlamp/Tail Lamp/LED Pos
Slide 16: Capacity for Manufacturing at Scale Augmented by Technical Capabilities
Capacity for Manufacturing at Scale Augmented by Technical Capabilities Navi Mumbai Kaynes International Design & Manufacturing Pvt Ltd Ahmedabad o 18 SMT Lines Mysuru Unit I o 70 THD Lines Parwanoo Manesar Unit I o 26 Cable Harness Lines Manesar Unit II o 15 plastic moulding machines Bengaluru Unit
Slide 17: R&D, Certifications and Supply Chain
R&D, Certifications and Supply Chain Research and Development Certifications Supply chain Focused on development of new Long term relationship with products and improvement existing suppliers leading to better products credit terms Dedicated research facility at Mysore, Bangaluru & Ahmedabad with a
Slide 18: Well Diversified Business Profile
Well Diversified Business Profile… Revenue across verticals FY23 Revenue across segments FY23 Automotive 14% 30% Industrial incl EV OEM-Turnkey-PCBA Aerospace, Outer-space & 38% OEM- Turnkey- Box Build 12% Strategic electronics ODM Medical Prod. Eng. & IoT Solutions Railways 6% 62% 3% IoT / IT, Cons
Slide 19: Marquee customer base
Marquee customer base Industry Key Customers Long standing relationship with clients Average order inflow per month INR Mn Average business period relationship of top 10 customers in each vertical3 Leading global mfg of electronic instruments and 11 Industrial electromechanical devices 10 10 2,741 2
Slide 20: Business evolution and key milestones
Business evolution and key milestones Started exporting sensor electric Listed on NSE/BSE assembly to Phoenix, Established manufacturing Arizona Received approval Established unit in facility at Manesar Growth in aerospace, under the Got approval for Bengaluru defense, power Production Linked Establ
Slide 21: The Kaynes Advantage - Key Strengths
The Kaynes Advantage - Key Strengths Well diversified End to end design and Internationally Longstanding business profile across engineering recognized and relationships with top industry verticals : capabilities enabled certified manufacturing global & domestic Address the Low with IoT solutions fa
Slide 22: Business Strategy
Business Strategy
Slide 23: Well Positioned To Capitalize On Strong Industry Tailwinds
Well Positioned To Capitalize On Strong Industry Tailwinds… Global ESDM – A trillion dollar industry India all set to be a large ESDM Market 1,203 Global ESDM Market, INR Bn Indian ESDM Market, INR Bn FY23 928 69 Indian Electronics market 10,860 CAGR: 8.2% 47 327 Domestic CAGR: c.34% Electronics 8,4
Slide 24: Strong industry tailwinds: semiconductors
1 Strong industry tailwinds (cont’d) Global semiconductor market is expected to be a trillion dollar industry India is a growing semiconductor market Global semiconductor market value by vertical (US$bn1) The electronics ecosystem and valuechain Indian semiconductor market (US$bn) Government support
Slide 25: Strong industry tailwinds: PCB market
1 Strong industry tailwinds (cont’d) Global PCB market overview PCB Market (US$bn) PCB Market share by industry 2 Key Trends CAGR: c.3% 107.7 Lighting Strategic HDI PCB1 market is expected to witness the highest growth due to the 4% Electronics 3% Telecom/Mobile ✓ growing demand for smart wearables
Slide 26: The Way Forward
The Way Forward Focus on full product / box build capabilities Catering to OEMs with in-house test fixtures for reliability, faster turn-around, complex prototypes, zero defects, and upgrading facilities to expand consumer portfolio and provide full box build services to secure a larger revenue shar
Slide 27: Backward integration into OSAT and Bare PCB manufacturing
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Backward integration into OSAT and Bare PCB manufacturing Backward integration into OSAT and Bare PCB Current Operations of Kaynes manufacturing PCB SMT2 Assembly IC1 Frontend IC Backend System Design IC1 Design manufacturing fr
Slide 28: Bare PCB manufacturing process
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Bare PCB manufacturing process Inner Layer Manufacturing Process CCL (Copper Clad Plated through Hole Image Transfer Etching Lamination Panel Plating Laminate) (PTH) CCL is a raw material for Image transfer using The inner layer
Slide 29: OSAT and Bare PCB manufacturing capabilities offer strategic benefits
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy OSAT and Bare PCB manufacturing capabilities offer strategic benefits Supply Chain & Future Market Vertical Integration Readiness ◼ Integrated offerings to customers with OSAT and PCB fabrication ◼ Greater supply chain resilienc
Slide 30: Financial Highlights
— Financial Highlights
Slide 31: Proven record of consistent financial performance (1/4)
Proven record of consistent financial performance (1/4) Revenue (₹ Mn) EBITDA (₹ Mn) 11,261 1,683 45% CAGR 60% CAGR 7,062 937 3,682 4,206 413 409 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 14.9% 952 13.3% 11.2% 117% CAGR 9.7% 417 94 97 FY20 FY21 FY2
Slide 32: Proven record of consistent financial performance (2/4)
Proven record of consistent financial performance (2/4) 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 1812 1473 1142 916 2,018 958 1,365 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROCE and ROE are adju
Slide 33: Proven record of consistent financial performance (3/4)
Proven record of consistent financial performance (3/4) 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 Working capital is computed based on a
Slide 34: Proven record of consistent financial performance (4/4)
Proven record of consistent financial performance (4/4) 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 35: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (₹ Mn) FY20 FY20 FY21 FY21 FY22 FY22 FY23 FY23 Revenue from operations 3,682 4,206 7,062 11,261 Raw material cost 2,417 2,861 4,894 7,801 Employee expenses 424 459 602 771 Other expenses 428 477 629 1,006 EBITDA 413 409 937 1,683 EBITDA margin (%) 1
Slide 36: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (₹ Mn) FY20 FY20 FY21 FY21 FY22 FY22 FY23 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 To
Slide 37: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Particulars (₹ Mn) FY20 FY20 FY21 FY21 FY22 FY22 FY23 FY23 Cash flow from operating activities Profit before tax 113 109 590 1,260 Adjustment for non-operating items 314 333 386 452 Operating profit before working capital changes 427 442 976 1,713 (Increase)/ decre
Slide 38: Expansion Update
Expansion Update Manesar (Haryana) Chamrajanagar (Karnataka) Work going on at full swing Both the factories are operational Phase wise operationalization Ongoing – Alpha & Beta Blocks ready, Gamma block getting ready Pune (Maharashtra) Upgradation existing facilities Facility acquired Mysore Unit 1
Slide 39: Experienced board of directors and leadership team
6 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.Tec
Slide 40: Awards and Recognition
Awards and Recognition Electronics Company of the Exports Award Year 2022-23 ELCINA ELCINA – EDY, 2018 Emerging Best EMS Co. Entrepreneur IESA Make in India, India Today Proud Contributor Defennovation To Awards Chandrayaan-3 Excellence in 2023 Manufacturing ,2022 39
Slide 41: Thank You
Thank You COMPANY Kaynes Technology India Limited Jairam P Sampath Whole-time Director & Chief Financial Officer Email: ir@kaynestechnology.net INVESTOR RELATION ADVISORS Neeraj Vinayak Orient Capital Head Investor Relations (A division of Link Intime India Pvt Ltd) Email: neeraj.vinayak@kaynestechn
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