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What is the story about?
Shares of Kaynes Technology Ltd. are down over 6% on Tuesday, May 11, extending its losses for the second day in a row. The stock was down over 3% on Monday.
The company will be reporting its results on Wednesday, May 13, a day after its peer Dixon Technologies, which itself is down 5% ahead of its own results announcement.
According to the CNBC-TV18 poll, the company's revenue is likely to increase by 53% from the year-ago period to ₹1,508 crore from ₹984 crore earlier.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to come in at ₹243 crore, a growth of 44% from the year-ago period.
EBITDA margin may narrow by 100 basis points to 16.1%, while net profit may rise by 48% to ₹172 crore, according to the poll.
The 53% topline growth during the quarter for Kaynes is likely to be driven by a combination of smart meters, electric vehicles and the auto sector.
However, despite the strong EBITDA growth projection, the company's margin may narrow by 100 basis points due to an adverse product mix, as the mix of smart meters is likely to be lower than last year this quarter.
The Semicon unit 1 of the company has been successfully commissioned, and unit 2 is likely to be commissioned by July of this year.
According to brokerage firm Equirus, the OSAT contribution earlier expected this quarter is unlikely to materialize. Yet, a key monitorable will be the management's cash flow guidance and a positive one at that.
Shares of Kaynes Tech are trading 6.4% lower on Tuesday at ₹4,086.8. The stock is coming off from the 15% gain that it had seen over the last one month, having given up most of those gains over the last two sessions.
The company will be reporting its results on Wednesday, May 13, a day after its peer Dixon Technologies, which itself is down 5% ahead of its own results announcement.
CNBC-TV18 Poll For Kaynes
According to the CNBC-TV18 poll, the company's revenue is likely to increase by 53% from the year-ago period to ₹1,508 crore from ₹984 crore earlier.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to come in at ₹243 crore, a growth of 44% from the year-ago period.
EBITDA margin may narrow by 100 basis points to 16.1%, while net profit may rise by 48% to ₹172 crore, according to the poll.
What To Expect From Kaynes
The 53% topline growth during the quarter for Kaynes is likely to be driven by a combination of smart meters, electric vehicles and the auto sector.
However, despite the strong EBITDA growth projection, the company's margin may narrow by 100 basis points due to an adverse product mix, as the mix of smart meters is likely to be lower than last year this quarter.
The Semicon unit 1 of the company has been successfully commissioned, and unit 2 is likely to be commissioned by July of this year.
According to brokerage firm Equirus, the OSAT contribution earlier expected this quarter is unlikely to materialize. Yet, a key monitorable will be the management's cash flow guidance and a positive one at that.
Factors To Monitor
- Net Working Capital and Operating Cash Flow outlook
- Order inflow from newer segments like defense and aerospace
- Disbursement of grant for the OSAT if any
- and uptick in execution of railway and industrial orders.
Shares of Kaynes Tech are trading 6.4% lower on Tuesday at ₹4,086.8. The stock is coming off from the 15% gain that it had seen over the last one month, having given up most of those gains over the last two sessions.
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