Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — Q1 FY24 Earnings Presentation
38 slides from Kaynes Technology India's earnings presentation, Jul 31, 2023
Slide 1: Cover letter to stock exchanges
July 31, 2023 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 3 KAYNES Stock Code
Slide 2: Kaynes Technology India Limited Earnings Presentation July 2023
Kaynes Technology India Limited Earnings Presentation | July 2023
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: Results Snapshot (Consolidated)
Q1FY24 Results Snapshot (Consolidated) ₹ 30,004 mn ₹ 2,972 mn ₹ 403 mn 13.5% Order Book Revenue EBITDA EBITDA Margin ₹ 26,482 mn in FY23 49% YoY 64% YoY + 122 bps YoY ₹ 246 mn 8.3 % ₹ 9,824 mn ₹ 972 mn Profit After Tax PAT Margin Networth Net Debt 145% YoY +325 bps YoY ₹ 2,120 mn in Q1FY23 ₹ 1,690 m
Slide 6: Consistent quarterly financial performance
Consistent quarterly financial performance Revenue (₹ Mn) EBITDA (₹ Mn) 3,646 594 2,891 2,972 2,732 432 412 403 1,993 246 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 15.8% 16.3% 413 14.3% 13.5% 12.3% 229 246 210 100 Q1FY
Slide 7: Diversified Revenue Mix
Diversified Revenue Mix Revenue across verticals Q1FY24 Q1FY23 14% 16% Automotive 32% Automotive Industrial incl EV 11% Industrial incl EV 10% 41% Aerospace, Outerspace & Aerospace, Outerspace & Strategic electronics 5% Strategic electronics Medical Medical 6% 3% Railways Railways 0% IoT / IT, Cons
Slide 8: Consistent quarterly financial performance
Consistent quarterly financial performance Gross Block (₹ Mn) Asset Turnover ratio (x)1 2,125 5.4 5.6 1,487 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Debt/Equity (x) Networth (₹ Mn) 0.9 9,824 2,120 0.2 Q1FY23 Q1FY24 Q1FY23 Q1FY24 1 - Annualized 7
Slide 9: Consistent quarterly financial performance
Consistent quarterly financial performance Net Working Capital Days Inventory Days 122 121 133 118 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Receivable Days Payable Days 98 94 77 64 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Net working capital is calculated as average inventory days plus average receivable days less average pa
Slide 10: Q1FY24 Profit & Loss Statement (Consolidated)
Q1FY24 Profit & Loss Statement (Consolidated) Particulars (₹ Mn) Q1FY24 Q1FY23 YoY Chg Revenue from operations 2,972 1,993 49% Raw material cost 2,057 1,405 46% Employee expenses 236 184 28% Other expenses 276 158 75% EBITDA 403 246 64% EBITDA margin (%) 13.5% 12.3% 122 bps Depreciation and amortiza
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: 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 Automotive Industrial & EV Railways Medical Strategic electronics and others Cluster PCBA Smart Energy Meter AFTC & Interlocking Ventilator, Endoscopy cart Air Data Sensor Eval Kits & Data Logger Head/Tail/Fog/DRL PCBA Street light contr
Slide 16: Capacity for Manufacturing at Scale Augmented by Technical Capabilities
Capacity for Manufacturing at Scale Augmented by Technical Capabilities o 12 SMT Lines + 9 new SMT Lines in FY24 o 57 THD Lines 1 2 o 26 Cable Harness Lines o 15 plastic moulding machines o 10K class clean room o Most manufacturing at low cost locations 3 o Dedicated humidity controlled stores 1 Par
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 Leading global mfg of electronic Average business period relationship of top 10 customers in each vertical3 instruments and 11 Industrial electromechanical devices 10 10 2,165 8
Slide 20: Business Evolution and Key Milestones
Business Evolution and Key Milestones Started exporting sensor Established manufacturing electric assembly to facility at Manesar Phoenix, Arizona Established unit in Got approval for Bengaluru Collaboration with Growth in aerospace, Established as a setting up hardware Established Kaynes Qualcomm T
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 2021 – USD 880 Bn 2026E – USD 1,145 Bn FY22 Indian ESDM Market, INR Bn 33% Indian Electronics 35% market 9,263 India Domestic 16% 14% Electronics 6,376 5,995 C
Slide 24: 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 25: Application Specific Product Roadmap
Application Specific Product Roadmap Industrial Medical Devices Aerospace & Strategic Space Information High-capacity UPS Diagnostic, lab, electronics, Components of Technology surgical & other Communication LRUs space Vehicles & High density boards EV Electronics equipment Sub-system & other produc
Slide 26: Financial Highlights
—— Financial Highlights
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 under progress operationalize by Q2FY24 Pune (Maharashtra) Upgradation existing facilities Leased place Mysore Unit 1 & 2 Manesar To be operatio
Slide 35: Utilization of IPO fund
Utilization of IPO fund Amount to be Utilized as Utilization up to Utilization up to per Prospectus (₹ Mn) 30th June 2023 (₹ Mn) 30 June 2023 (%) Repayment/ prepayment of Borrowings 1,300 1,300 100% Expansion of existing manufacturing capacity 989 70 7% Setting up a new facility at 1,493 103 7% Cham
Slide 36: 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 37: Awards and Recognition
Awards and Recognition Platinum Award Exports Award Best Performing ELCINA – SME EDY, 2018 Emerging Best EMS Co. Entrepreneur IESA Make in India, India Today Excellence in manufacturing product Defennovation (large scale) Awards ELCINA, 2022 Excellence in Manufacturing ,2022 36
Slide 38: 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 AVP Investor Relations (A division of Link Intime India Pvt Ltd) Email: neeraj.vinayak@kaynestechno
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