Kaynes Technology Shares Plunge 19% on Revised Revenue Guidance
Kaynes Technology saw its share price tumble by over 19% on Tuesday following a downward revision in its revenue guidance for FY25. The company now projects revenue of ₹2,800 crore, down from its earlier estimate of ₹3,000 crore.
What Led to the Drop?
The sharp decline comes on the back of execution delays during the December quarter, particularly in the industrials segment. According to a CNBC-TV18 report, the company’s management revealed that these delays prevented them from completing orders worth ₹100 crore. However, they remain optimistic, anticipating that most of these pending orders will be fulfilled in the current quarter.
Long-Term Outlook
Despite the short-term setback, Kaynes Technology is bullish on its long-term growth. The company has set an ambitious revenue target of ₹4,500 crore for FY26 and expects to achieve margins exceeding 15% in the process.
Q3 FY25 Highlights
Kaynes Technology delivered strong performance metrics for the third quarter of FY25:
- Profit After Tax (PAT): ₹66.5 crore, a 47% increase from Q3 FY24.
- Revenue: ₹661.2 crore, up 30% from ₹509.3 crore in Q3 FY24.
- EBITDA (excluding other income): ₹94 crore, a 35% growth from ₹69.9 crore in the same quarter last year.
Margins Show Positive Growth
The company also demonstrated improved margins:
- EBITDA Margin: Rose to 14.2%, up by 50 basis points from 13.7% in Q3 FY24.
- PAT Margin: Increased to 10.1%, up by 120 basis points from 8.9% in the same period last year.
Looking Ahead
While the lowered FY25 guidance has caused concern, the company’s robust Q3 performance and promising outlook for FY26 indicate potential recovery. Investors will be closely watching execution in the coming quarters to see if Kaynes Technology can deliver on its revised targets and maintain its long-term growth trajectory.