Syrma SGS Technology (SYRMA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 89%-92% year-over-year, surpassing INR 1,000 crore for the second consecutive quarter.

• Operating EBITDA increased 26%-27% year-over-year, but declined sequentially; PAT margin fell to 1.7%-1.8%.

• Order book as of June 30, 2024, exceeded INR 4,500 crore, with INR 1,200 crore in new orders.

• Export revenue accounted for 16% of total revenue.

• Board approved unaudited results, director re-appointments, new statutory auditor, and scheduled the AGM for September 17, 2024.

Financial highlights

• Consolidated revenue for Q1 FY25 was INR 1,175 crore (₹11,752 million), up 89% year-over-year.

• Gross margin declined to 16%-16.1% due to higher Consumer segment mix.

• Operating EBITDA margin was 4.6%; PAT margin dropped to 1.7%-1.8%.

• Export revenue was INR 180 crore (16% of total); OEM revenue was 10% of total.

• Received INR 4 crore Telecom PLI benefit in Q1; expecting INR 15-16 crore more in FY25.

Outlook and guidance

• Management targets 40%-45% revenue and EBITDA growth for FY25, with EBITDA of INR 310-325 crore.

• Exports expected to grow 20%-25% annually, targeting INR 1,000-1,100 crore for FY25.

• Margins expected to improve to 7% for the full year as product mix normalizes.

• Board recommended a final dividend of 15% (Rs. 1.5 per equity share) for FY24, subject to approval.

• Awaiting NCLT approval for amalgamation of two wholly owned subsidiaries.