Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — Q4 FY2024 Earnings Presentation
42 slides from Kaynes Technology India's earnings presentation, May 16, 2024
Slide 1: Cover letter to stock exchanges
May 16, 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 Code
Slide 2: Kaynes Technology India Limited Earnings Presentation May 2024
Kaynes Technology India Limited Earnings Presentation | May 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: FY24 Results Snapshot (Consolidated)
FY24 Results Snapshot (Consolidated) ₹ 41,152 mn ₹ 18,046 mn ₹ 2,542 mn 14.1% Order Book Revenue EBITDA EBITDA Margin ₹ 26,482 mn in FY23 60% YoY 51% YoY -86 bps YoY ₹ 1,833 mn 10.2 % ₹ 24,848 mn ₹ 2,177 mn Profit After Tax PAT Margin Networth Net Debt 93% YoY 170 bps YoY ₹ 9,577 mn in FY23 ₹ 473 mn
Slide 6: Q4FY24 Results Snapshot (Consolidated)
Q4FY24 Results Snapshot (Consolidated) ₹ 6,373 mn ₹ 952 mn 14.9% Revenue EBITDA EBITDA Margin 75% YoY 60% YoY -134 bps YoY ₹ 153 mn ₹ 813 mn 12.8% Finance Cost Profit After Tax PAT Margin 89% YoY 97% YoY 143 bps YoY 5
Slide 7: Consistent quarterly financial performance
Consistent quarterly financial performance Revenue (₹ Mn) EBITDA (₹ Mn) 6,373 952 5,093 699 594 3,646 3,608 488 2,972 403 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 16.3% 813 14.9% 13.5% 13.5% 13.7% 413 452 323 247 Q4FY
Slide 8: Diversified Revenue Mix - FY24 vs FY23
Diversified Revenue Mix- FY 24 vs FY 23 Revenue across verticals FY24 FY23 Automotive Automotive 7% 14% Industrial incl EV Industrial incl EV 3% 11% 29% Aerospace* & Strategic Electronics 38% 3% 12% Aerospace* & Strategic Electronics Medical Medical 6% 48% Railways 2% Railways 27% IoT / IT, Cons and
Slide 9: Consistent annual financial performance
Consistent annual financial performance Gross Block (₹ Mn) Asset Turnover ratio (x)1 3,680 6.2 4.9 1,812 FY 2023 FY 2024 FY 2023 FY 2024 Debt/Equity (x) Networth (₹ Mn) 0.1 0.1 24,848 9,577 FY 2023 FY 2024 FY 2023 FY 2024 8
Slide 10: Consistent annual financial performance
Consistent annual financial performance Net Working Capital Days Inventory Days 104 99 97 83 FY 2023 FY 2024 FY 2023 FY 2024 Receivable Days Payable Days 73 73 69 59 FY 2023 FY 2024 FY 2023 FY 2024 Net working capital is calculated as average inventory days plus average receivable days less average
Slide 11: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (₹ Mn) Q4 FY24 Q4 FY23 Y-o-Y 12MFY24 12MFY23 Y-o-Y Revenue from operations 6,373 3,646 75% 18,046 11,261 60% Raw material cost 4,786 2,453 95% 13,299 7,801 70% Employee expenses 320 217 48% 1,028 771 33% Other expenses 314 382 -18% 1,178 1,006 17% E
Slide 12: Company Overview
~ S “ 5 © > io) = o a 5 3 os)
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: Well Diversified Business Profile
Well Diversified Business Profile… Revenue across geographies FY24 Low customer concentration FY24 69% 1% 1% 53% 5% India 3% North America Europe 26% 90% SE Asia Others Top 1 Top 5 Top 10 Revenue across segments Revenue across verticals 1% 2% Automotive OEM – Turnkey – Box Build 7% Industrial incl E
Slide 20: 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 3,212 Industrial electromechanical devices 9 2,741 2,
Slide 21: 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 22: 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 23: Business Strategy
Business Strategy
Slide 24: 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 25: Strong industry tailwinds (cont'd)
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 26: Strong industry tailwinds (cont'd)
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 27: 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 28: Backward Integration - OSAT Expansion Strategy
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 29: Backward Integration - PCB Expansion Strategy
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 30: 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 31: Financial Highlights
~ Financial Highlights
Slide 32: Proven record of consistent financial performance (1/4)
Proven record of consistent financial performance (1/4) Revenue (₹ Mn) EBITDA (₹ Mn) 18,046 62% CAGR 84% CAGR 2,542 11,261 1,683 7,062 937 4,206 409 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 14.9% 1,833 13.3% 14.1% 166% CAGR 9.7% 952 417 97
Slide 33: 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% 22.8% 22.0% 13.5% 8.1% FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Net Worth (Rs Mn) Gross Block (Rs Mn) 3,680 24,848 1,812 9,577 1,473 1,142 1,365 2,018 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY
Slide 34: Proven record of consistent financial performance (3/4)
Proven record of consistent financial performance (3/4) Inventory Days Receivable Days 93 137 83 104 69 101 97 59 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Payable Days Net Working Capital Days 113 117 86 98 99 73 73 83 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Working capital is compute
Slide 35: Proven record of consistent financial performance (4/4)
Proven record of consistent financial performance (4/4) Net Debt (₹ Mn) Net Debt/EBITDA (x) 2,177 3.1 1,480 1,252 1.6 0.9 473 0.3 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Net Debt/Equity (x) Asset Turnover ratio (x) 0.9 6.2 0.7 4.8 4.9 3.7 0.0 0.1 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY
Slide 36: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (₹ Mn) FY21FY20 FY22FY21 FY23FY22 FY24FY23 Revenue from operations 4,206 7,062 11,261 18,046 Raw material cost 2,861 4,894 7,801 13,299 Employee expenses 459 602 771 1,028 Other expenses 477 629 1,006 1,178 EBITDA 409 937 1,683 2,542 EBITDA margin (
Slide 37: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (₹ Mn) FY21FY20 FY22FY21 FY23FY22 FY24FY23 Gross Block (tangible assets) 979 1,112 1,451 3,276 Accumulated Depreciation 408 473 549 682 Net Block (tangible assets) 571 640 902 2,594 Intangible assets 267 352 426 620 Other non-current assets 165 369 552 3,571
Slide 38: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Particulars (₹ Mn) FY21FY20 FY22FY21 FY23FY22 FY24FY23 Cash flow from operating activities Profit before tax 109 590 1,260 2,316 Adjustment for non-operating items 333 386 452 401 Operating profit before working capital changes 442 976 1,713 2,717 (Increase)/ decre
Slide 39: 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 40: 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.Te
Slide 41: 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 40
Slide 42: 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 Sumit Kumar Verma Orient Capital Senior Manager – Investor Relations & Business (A division of Link Intime India Pvt Ltd) Analyst
Kaynes Technology India — Q4 FY2024 Earnings Presentation on 6ix