Cash flow concerns remain for Kaynes

Electronics manufacturer Kaynes Technology has pushed back its target of turning net cash positive to the end of the current fiscal year, after missing its guidance given last quarter to generate free cash flow by the end of September.

- Shouvik Das

Bengaluru-based Kaynes, which declared its second-quarter earnings on Tuesday, reported a 35% sequential jump in revenue to ₹906 crore, while net profit jumped 61% to ₹121 crore.

However, the company spent more than what its business generated, leading to a negative cash flow of ₹218 crore, The management had stated last quarter that it would achieve cash-flow positivity by the September quarter.

Despite the strong profit growth, Kaynes spent more than its business generated, resulting in a negative cash flow of ₹218 crore for the quarter. This shortfall is largely attributed to its aggressive growth and focus on acquisitions.