• Customs duty exemption: The duty concessions on display assemblies and camera module components will reduce costs, improve cash flow, and support profit growth while domestic supply chains develop over the next 3 to 5 years.
• Expansion and RFQs: Kaynes is venturing into the semiconductor and display manufacturing segments, leading to rising order book levels and a surge in RFQs amid strong localized sourcing pushes from automotive giants.
• Memory price inflation: Rising memory costs are fully passed through to customers and represent only 2% to 3% of board-level consumption, limiting the direct margin impact of potential price spikes.
• Working capital normalization: Backlogs and deferred orders are clearing steadily, with working capital metrics expected to normalize over the next one to two quarters and show improved performance from Q3 onwards.