Kaynes Technology India Ltd

Kaynes Technology Shares Drop Over 19% as Management Lowers FY25 Guidance After Q3 Results

Share prices for Kaynes Technology decreased more than 19 percent following a revenue projection cut from ₹3,000 crore to ₹2,800 crore for the fiscal year ending March 2025. The business achieved a 47% profit rise in Q3 FY25 but faced execution delays while showing a 30% yearly revenue growth improvement.

Kaynes Technology saw its shares tumble by more than 19% after the company reduced its FY25 revenue projection.

Share Price Hit Hard

The stock value of Kaynes Technology experienced a decline beyond 19% in Tuesday trading. A substantial price decline occurred when Kaynes announced its cut to FY25 revenue guidance from ₹3,000 crore to ₹2,800 crore.

Impact of Execution Delays

A CNBC-TV18 report documented company executives admitting that their December quarter order execution process took longer than expected. They missed ₹100 crore worth of business from the industrials segment because of these execution delays. Management expects to finish outstanding orders during this current fiscal period.

FY26 Revenue Outlook

The company’s FY26 revenue projection targets ₹4,500 crore while anticipating EBIT margin performance above 15%.

Q3 FY25 Performance Highlights

Profit Growth

In Q3 FY25 the company achieved 47% profit after tax (PAT) growth which resulted in ₹66.5 crore during that period.

Revenue Growth

The company generated ₹661.2 crore in revenue during Q3 FY25 representing a 30% increase from Q3 FY24 revenue levels of ₹509.3 crore.

EBITDA Improvement

During the year the company’s EBITDA performance improved by 35% on an annual basis to reach ₹94 crore even after excluding other income which stood at ₹69.90 crore in Q3 FY24.

  • EBITDA margin (excepting other income) demonstrated a 50 basis points improvement to achieve 14.2% in Q3 FY25 compared to 13.7% in Q3 FY24.
  • Q3 FY25 yielded a 120 basis point PAT margin improvement that raised the levels from 8.9% in Q3 FY24 to 10.1%.

Strong Order Book and Financial Health

Kaynes Technology reported:

  • 30% year-on-year revenue growth in Q3 FY25 with strong profit margins.
  • ₹17,373 crore revenue for the 9-month period ending December 31, 2024, up 49% from ₹11,673 crore during the same period in 2023.
  • The company’s strong order book exceeding ₹60,471 crore during December 2024 established long-term revenue visibility through FY25.
  • Net working capital cycle duration improved to 107 days from Q3 FY24 levels of 117 days.

Ramesh Kunhikannan as Managing Director & Promoter of the company focused on investing in high-potential high-margin segments to drive market growth while establishing stronger market position.

Kaynes Technology Share Price Today

  • Opening price: ₹4,877 per share on the BSE.
  • Intraday high: ₹4,917.45.
  • Intraday low: ₹4,256.65.

Analyst Advice

Currently Technical Analyst Riyank Arora from Mehta Equities Ltd explains the decreased share price stem from the reduction in projected FY25 revenue forecast. From a technical perspective:

  • The share price fell down below its primary support point at ₹4,566.
  • Any price increase toward ₹5,000–₹5,100 requires investors to sell their shares because a market downturn becomes more likely after this level.
  • It is best for investors to sell their shares when prices momentarily retreat from present market values.

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