• Smart metering receivables: Kaynes Technology plans to reduce smart metering receivables by approximately ₹400 crore and inventory by ₹150 crore by the end of the financial year to offset the ₹600 crore negative impact. Management expects trend reversals to begin in Q3 and improve in Q4 as revenue is recognized only upon receiving collections.
• Semiconductor corporate guarantees: Management clarified that ₹1,830 crore in corporate guarantees was provided to the ISM 1.0 scheme as a mandatory requirement to secure central government subsidies for its ₹3,300 crore semiconductor project outlay, rather than an operational overspend on its ₹900 crore capex.
• Product revenue mix: The company is targeting 30% of its revenue to come from products by FY30, noting that smart metering is an inherited business with 500,000 to 600,000 meters remaining to be installed.
• Standalone EMS performance: Working capital management and net working capital for the standalone EMS business remain fully under control and healthy despite ongoing working capital headwinds in the smart metering segment.