Kaynes Technology Reports Strong Financial Performance Amid Rising Interest Expenses and Leverage Concerns

Kaynes Technology India has recently undergone a significant evaluation revision, reflecting a robust financial performance for the quarter ending March 2025. The company reported its highest net sales at Rs 984.48 crore, alongside a peak PBDIT of Rs 167.86 crore. Notably, the operating profit to net sales ratio reached 17.05%, indicating strong operational efficiency. The profit before tax, excluding other income, was recorded at Rs 121.46 crore, while the profit after tax stood at Rs 116.20 crore, translating to an earnings per share of Rs 18.13.
However, the company faces challenges, particularly with interest expenses, which have risen to Rs 56.44 crore, marking a growth of 25.81% over the last six months. Additionally, the debt-equity ratio has reached 0.32 times, suggesting a higher leverage position.

In terms of market performance, Kaynes Technology has shown impressive returns compared to the Sensex. Over the past week, the stock returned 10.39%, and over the past year, it has surged by 142.7%, significantly outpacing the Sensex's 11.77% return. This performance highlights the company's strong recovery trajectory in the industrial manufacturing sector.