Kaynes Technology India reports a 40% revenue increase in the June quarter driven by its core EMS business and strategic focus on semiconductor and circuit-board ventures, despite supply chain disruptions and a decline in smart metering sales.
Kaynes Technology India said revenue rose 40% year on year in the June quarter, helped by a stronger performance in its core electronics manufacturing services business, even as it deliberately reduced exposure to smart metering. Management said EMS grew more than 48% and that the company had added new customers in automotive and industrial electronics, including India’s second-largest two-wheeler electric vehicle maker, alongside buyers in Germany and France.
The company’s order book stood at about ₹8,900 crore to ₹9,000 crore, reinforcing confidence in demand across automotive, aerospace, defence and railways. Kaynes also pointed to recent customer recognition from Mahindra, Siemens and others as evidence that quality and delivery standards are improving. The update comes after a difficult period for the group: in the previous fiscal year, revenue and cash flow missed internal targets, and investors reacted sharply.
A key strategic focus is the build-out of Kaynes’ semiconductor and circuit-board businesses. Management said its OSAT, or outsourced semiconductor assembly and test, unit and its PCB, or printed circuit board, venture remain on track to start commercial production from the third quarter of FY2027. Mitsui has partnered with Kaynes Semicon to support the OSAT start-up and sales effort, while the company has also cited a ₹170 crore government subsidy. Research from S&P Global earlier this year suggested the new businesses could become meaningful revenue contributors as production scales.
The quarter also underscored the strain of working capital and supply chain disruption. Operating cash flow was negative at ₹259 crore, driven by higher inventory and receivables, while smart metering revenue fell 12% and receivables in that business rose to ₹1,311 crore. Management said it is weighing ways to de-risk the segment, including a possible separation of the service-provider part of the business, and expects to outline a firmer plan by the February results call. It also warned that component shortages, longer lead times and price increases could pressure margins in coming quarters, even as it maintained that cash is not a constraint for planned capital spending.
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