Kaynes Technology inaugurates new manufacturing plant for electronics manufacturing

Following the announcement, shares of the company were trading flat at ₹5,025.

The company stated that the facility is equipped with the latest manufacturing technologies such as high-precision electronic assembly, 3D optical and AI-enabled inspection systems, and lead-free compliant processes. The facility aims to carry out operations in a sustainable manner to reduce environmental impact and boost production efficiency.

The Hyderabad facility will manufacture electronics for various industries including automotive, medical electronics, aerospace, and telecommunications.

Ramesh Kunhikannan, managing director of Kaynes Technology, said that the new facility positions the company at the forefront of the electronics manufacturing industry and also provides a push to the company’s manufacturing capabilities.

“This state-of-the-art plant not only enhances our manufacturing capabilities but also positions Kaynes Technology at the forefront of the electronics manufacturing industry, both in India and globally,” he said.

The company recently announced that its wholly-owned subsidiary, Kaynes Singapore along with Kaynes Technologies had entered into a joint venture agreement for the acquisition of a 54% stake in Sensonic Austria.

In Q1FY25, Kayne Technologies’ net profit surged 106% year-on-year (YoY) to ₹50.8 crore. The company’s consolidated revenue for the quarter jumped 70% YoY to ₹504 crore.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was up 66% YoY at ₹66.9 crore however, the EBITDA margin contracted by 27 basis points (bps) YoY to 13.3%. The net profit margin saw a significant expansion of 178 bps YoY to 10.1%. The company’s order book at the end of the quarter stood at ₹5,038 crore.

Shares of the company have risen by nearly 88% since the beginning of the year. The stock has gained over 179% in the past year.