Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — Q2 FY2024 Earnings Presentation
40 slides from Kaynes Technology India's earnings presentation, Oct 31, 2023
Slide 1: Exchange filing cover letter
October 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 – KAYNES Stock C
Slide 2: Kaynes Technology India Limited Earnings Presentation October 2023
Kaynes Technology India Limited Earnings Presentation | October 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: Q2FY24 Results Snapshot (Consolidated)
Q2FY24 Results Snapshot (Consolidated) ₹ 34,618 mn ₹ 3,608 mn ₹ 488 mn 13.5% Order Book Revenue EBITDA EBITDA Margin ₹ 26,482 mn in FY23 32% YoY 13% YoY - 231 bps YoY ₹ 323 mn 9.0 % ₹ 10,141 mn ₹ 1,224 mn Profit After Tax PAT Margin Networth Net Debt 54% YoY +127 bps YoY ₹ 9,577 mn in FY23 ₹ 473 mn
Slide 6: Consistent quarterly financial performance
Consistent quarterly financial performance Revenue (₹ Mn) EBITDA (₹ Mn) 3,646 3,608 594 2,891 2,972 2,732 488 432 412 403 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 15.8% 16.3% 413 14.3% 13.5% 13.5% 323 229 246 210 Q2FY
Slide 7: Diversified Revenue Mix
Diversified Revenue Mix Revenue across verticals H1FY24 H1FY23 10% 15% Automotive 33% Automotive 13% Industrial incl EV Industrial incl EV 38% 12% Aerospace, Outerspace & Aerospace, Outerspace & Strategic electronics 4% Strategic electronics Medical 3% Medical 6% Railways Railways 1% IoT / IT, Cons
Slide 8: Consistent quarterly financial performance
Consistent quarterly financial performance Gross Block (₹ Mn) Asset Turnover ratio (x)1 2,295 6.1 5.7 1,548 H1FY23 H1FY24 H1FY23 H1FY24 Debt/Equity (x) Networth (₹ Mn) 1.0 10,141 0.3 2,338 H1FY23 H1FY24 H1FY23 H1FY24 1 - Annualized 7
Slide 9: Consistent quarterly financial performance
Consistent quarterly financial performance Net Working Capital Days Inventory Days 116 119 134 108 H1FY23 H1FY24 H1FY23 H1FY24 Receivable Days Payable Days 78 69 76 60 H1FY24 H1FY23 H1FY24 H1FY23 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) Q2 FY24 Q2 FY23 YoY Chg H1FY24 H1FY23 YoY Chg Revenue from operations 3,608 2,732 32% 6,580 4,724 39% Raw material cost 2,602 1,914 36% 4,659 3,319 40% Employee expenses 223 179 24% 459 363 26% Other expenses 295 207 43% 572 364 57% EBITDA 48
Slide 11: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (₹ Mn) Sept-23 Mar-23 Gross Block (tangible assets) 1,895 1,451 Accumulated Depreciation 607 549 Net Block (tangible assets) 1,288 902 Intangible assets 435 426 Other non-current assets 947 552 Total non-current assets 2,670 1,880 Inventories 5,512 4,132 Trad
Slide 12: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Particulars (₹ Mn) Sept-23 Sept-22 Cash flow from operating activities Profit before tax 713 423 Adjustment for non-operating items 270 260 Operating profit before working capital changes 983 683 (Increase)/ decrease in inventories -1,381 -1,050 (Increase)/decrease
Slide 13: Company Overview
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Slide 14: 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 15: 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 16: 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 17: 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 HPC Servers & Data Logger Head/Tail/Fog/DRL PCBA Street light con
Slide 18: Capacity for Manufacturing at Scale Augmented by Technical Capabilities
Capacity for Manufacturing at Scale Augmented by Technical Capabilities o 13 SMT Lines + 7 new SMT Lines in FY24 o 70 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 19: 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 20: 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 21: 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 10 10 electromechanical devices 2,741 8
Slide 22: 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 23: 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 24: Business Strategy
Business Strategy
Slide 25: 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 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: 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 28: Financial Highlights
— Financial Highlights
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: Expansion Update
Expansion Update Manesar (Haryana) Chamrajanagar (Karnataka) 120k built up space taken Work going on at full swing Planned operationalization Phase wise under progress operationalization starting Q2FY24 Pune (Maharashtra) Upgradation existing facilities Due Diligence Mysore Unit 1 & 2 Manesar To be
Slide 37: Utilization of IPO fund
Utilization of IPO fund Amount to be Utilized as Utilization up to Utilization up to per Prospectus (₹ Mn) 30th Sept 2023 (₹ Mn) 30 Sept 2023 (%) Repayment/ prepayment of Borrowings 1,300 1,300 100% Expansion of existing manufacturing capacity 989 102 10% Setting up a new facility at 1,493 318 21% C
Slide 38: 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 39: 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 38
Slide 40: 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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