Kaynes Technology shares surge over 11% after profit surges 47% in Q1

Shares of Kaynes Technology, electronic products maker, rose as much as 11.43% to hit an intraday high of ₹6,282 on the BSE a day after it reported June quarter earnings. On the National Stock Exchange, Kaynes Technology shares climbed as much as 11.46% to hit an intraday high of ₹6,284.

Kaynes Technology net profit in April-June period rose 47% to ₹75 crore from ₹51 crore in the same period last year.

The company reported strong operational performance in Q1 as its EBITDA also known as operating profit rose 69% to ₹113 crore from ₹67 crore in the year-ago period. Its EBITDA margin improved by 350 basis points to 16.8% from 13.3%.

The company's revenue advanced 34% to ₹673.5 crore as against ₹504 crore in the same period last year.

Kaynes Technology's order book rose to ₹7,401 crore at the end of June quarter from ₹5,038.6 crore.

“Kaynes continues to build on its strategic vision of becoming a high-value, design-led global ESDM partner. Our consistent focus on complex, high-margin verticals – such as industrial & EV, aerospace, smart infrastructure, etc - has helped sustain profitable growth. Further, we remain committed to expanding our capabilities and geographic reach through strategic investments in emerging & high potential verticals, ODM segment and strategic electronics (including SpaceTech, aerospace & avionics) that are aligned with our long-term goal of creating a diversified, resilient, future-ready and a truly global enterprise," said Ramesh Kunhikannan, Managing Director & Promoter, Kaynes Technology.

"The recent acquisition of August Electronics in Canada not only adds manufacturing capacity and capabilities in North America but also brings strong customer relationships in key high-value segments. This positions us to offer a compelling India–Canada supply chain alternative for global clients, especially those looking to diversify from China," Kunhikannan added.

Following earnings announcement, Kaynes Technology shares were witnessing heavier than usual trading volumes. Trading volume in Kaynes technology shares spiked by 8.4 times to 30.58 lakh shares as against average trading volume of 3.63 lakh shares.

As many as 1.61 lakh shares changed hands on the BSE compared with an average of 18,000 shares traded daily in the past two weeks.

As of 12:30 pm, Kaynes Technology shares traded 10.09% higher at ₹6,206, outperforming the BSE500 index which was down 0.10%.