Kaynes Tech Eyes Rs 2,900 Crore Revenue In FY25 Despite Q3 Miss

Kaynes Technology is confident that it will achieve a revenue of Rs 2,900 crore in FY25 despite missing its revenue and profit targets in Q3, the company's Whole Time Director and Chief Financial Officer, Jairam Sampath, told NDTV Profit on Tuesday. He said that increased capacity utilisation and the launch of new businesses will help the company achieve its revenue targets.

Kaynes Technology reported a 29.8% year-on-year revenue growth, reaching Rs 661 crore, falling short of Bloomberg's consensus estimate of Rs 796.6 crore. Its profit rose 47.2% year-on-year to Rs 66 crore, which was lower than the estimated Rs 88 crore.

“Our annual number should be somewhere between Rs 2,800-2,900 and closer to Rs 2,900. A 60% growth is what we are targeting,” he said.

Sampath added that the company aims to generate over Rs 1,000 crore in revenue in the fourth quarter, helping it reach a total revenue of Rs 2,900 crore for the full fiscal year.

“We have almost completed January. We are sure that a Rs 1,000 crore-plus (revenue) is easily doable. Not a problem. Additionally, capacities are coming,” Sampath added.

The Kaynes Tech CFO further mentioned that the company will expand its margins to over 15% in the ongoing financial year.

“The silver lining over there is that there'll be expansion of margins further. So we probably will end the year with margins exceeding 15%,” he said.

Sampath was confident of the fourth quarter being better than the third quarter with new businesses ramping up.

“It will only get better in Q4. The new businesses will also fire up. This year, somewhere between Rs 2800 crore and Rs 2900 crore (of revenue), we would clock in. And 15% plus of Ebitda (margin) we can safely assume,” he reiterated.

The smart meter production business will help the company reach peak utilisation in Q4, maxing it out in the next two months.

“Utilisation will probably be peaking in Q4. This has to do with the smart meter production. We have already started this month itself. We have done pretty well. In the next two months, we will probably max out on the capacity utilisation,” he said.

In the next financial year, Kaynes Technology is targeting a revenue of Rs 4,500 crore on the back of its new silicon assembly and PC board assembly businesses.

“For the next year, we are planning about Rs 4,500 crore of revenues, with good help from two new businesses that are likely to kick in in Q4. One is silicon assembly, and the other one is PC board assembly,” Sampath said.

Shares of Kaynes Technology were trading 6.75% higher as of 2:26 pm, compared to 0.79% rise in Nifty 50.