Kaynes Technology India Limited (KTIL), a key player in the technology sector, has scheduled a conference call to provide a business update to analysts and investors. The call, set for December 8, 2025, at 8:30 AM IST, will be hosted by Axis Capital and will feature discussions with key executives followed by a Q&A session.

Key Details of the Conference Call

Key Executives Participating

• Ms. Savita Ramesh - Chairperson
• Mr. Ramesh Kannan - Executive Vice Chairman
• Dr. Muthukumar Narayanaswamy - Managing Director
• Mr. Jairam Sampath - Whole-Time Director and Chief Financial Officer

This conference call comes at a time when KTIL has shown significant growth in its financial position. Based on the most recent balance sheet data:

Financial Highlights (as of March 2025)

The company has demonstrated substantial growth across various financial metrics. Notably, KTIL's total assets have increased by 42.14% year-over-year, reaching Rs 4,641.20 crore. This growth is particularly evident in the company's fixed assets, which have seen a 164.72% increase, potentially indicating significant investments in infrastructure or production capabilities.

The upcoming conference call may provide insights into the drivers behind this growth and the company's strategies for maintaining this momentum. Investors and analysts will likely be keen to understand how KTIL plans to leverage its financial position to drive future growth and navigate potential challenges in the technology sector.

Given the company's financial performance, the call is expected to generate significant interest among stakeholders. It presents an opportunity for the management to elaborate on their vision, discuss recent developments, and address questions from the investment community.

Investors and analysts interested in participating in the call should contact Axis Capital for registration details and dial-in information.

Kaynes Technology India Limited held a comprehensive business update conference call on December 8, 2025, to address observations raised in a Kotak Institutional Equities report. The management team, led by Executive Vice Chairman Ramesh Kunhikannan and CFO Jairam Sampath, provided detailed clarifications on accounting practices and reaffirmed the company's strong business fundamentals.

Management Response to Key Observations

Iskraemeco Business Performance Clarification

The management corrected several factual inaccuracies in the Kotak report regarding Iskraemeco's performance. Contrary to the report's claim of 28% net margin in H2 FY25, the actual margin was only 9% with revenues of ₹327.00 million and PAT of ₹48.90 million.

The H1 FY25 loss was attributed to significantly lower revenue of ₹85.00 crores, unchanged fixed costs, provisions from due diligence including inventory write-offs, and broader corporate cleanup adjustments.

Goodwill and Intangible Assets Recognition

Kaynes provided detailed explanations of its acquisition accounting practices for Iskraemeco and Sensonic acquisitions in FY25:

The company recognized customer contracts worth ₹115.00 crores as intangible assets under technical know-how, representing design implementation knowledge, hosting, and communication packages for smart metering.

Intangible Assets Capitalization Breakdown

Kaynes clarified the ₹180.00 crores capitalized as technical know-how additions in FY25:

Working Capital and Financial Management

Receivables Management Strategy

The management outlined comprehensive measures to address working capital concerns:

• Smart Meter Receivables: ₹687.00 crores total, including current and non-current portions
• Discount Strategy: Approximately ₹240.00 crores to be discounted off books
• Collection Timeline: Target to maintain collection periods within 90 days
• Supply Chain Finance: Collaboration with foreign banks offering lower interest rates

Borrowing Cost Clarification

Addressing the 17.70% average borrowing cost observation, Kaynes clarified that including bill discounting, the actual interest cost works out to 10.00%, showing improvement from FY24's equivalent calculation of 25.30%.

Business Outlook and Growth Strategy

Revenue Projections and Segment Performance

For FY26, Kaynes projects strong growth across multiple verticals:

OSAT Initiative Progress

The company reported significant milestones in its semiconductor assembly and test operations:

• Client Acquisition: Three major clients - Alpha Omega Semiconductor, Infineon, and Larsen & Toubro
• Commercial Production: First shipments completed, making Kaynes the first in India to ship from this facility
• Funding Status: ₹10.30 billion requirement to be funded through QIP, internal accruals, and government subsidies
• Subsidy Management: Dedicated team established for efficient subsidy documentation and compliance

Governance and Compliance Improvements

Related Party Transaction Disclosure

The management acknowledged an inadvertent omission in related party transaction disclosures in standalone financial statements, which has been rectified. The company is implementing software solutions to ensure comprehensive contra entries for all related party transactions across subsidiaries.

Structural Enhancements

Ramesh Kunhikannan outlined planned improvements:

• Team Expansion: Additional personnel in taxation, finance, and manufacturing
• Leadership Enhancement: Bringing in more senior leadership
• Communication Model: Revisiting and improving stakeholder communication processes
• Internal Controls: Strengthening audit review processes and disclosure checks

Financial Position Update

As of the latest available data, Kaynes Technology's financial metrics show:

The management emphasized that despite the accounting disclosure oversight, there are no underlying governance concerns or business deterioration. The company remains focused on its long-term growth roadmap, with strong momentum in EMS business, OSAT initiatives, and high-end PCB programs positioning India meaningfully in the global semiconductor value chain.