Syrma SGS Technology (SYRMA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached ₹8,915 million, up 24% year-on-year; nine-month revenue at ₹28,973 million, up 40% year-on-year, with export revenue at 20-23% of total.

• Q3 FY25 PAT surged 161% year-on-year to ₹530 million, with a PAT margin of 5.9%; nine-month PAT rose 43% to ₹1,130 million.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved and reviewed by the Board and auditors, with no material misstatements.

• Export revenue was subdued due to weakness in Germany, but is expected to rebound in FY26.

• Management remains confident of industry-plus growth and maintaining minimum 7% EBITDA margin.

Financial highlights

• Q3 FY25 operating EBITDA was ₹791 million (+88% YoY), margin 9.1%; nine months: ₹2,075 million (+53% YoY), margin 7.2%.

• Q3 FY25 EBITDA was ₹1,013 million (+96% YoY), margin 11.4%; nine months: ₹2,430 million (+43% YoY), margin 8.4%.

• Q3 FY25 PAT: ₹530 million, PAT margin 5.9%; nine months PAT: ₹1,130 million, PAT margin 3.9%.

• Gross margin for Q3: 26.7%; nine months: 21.3%.

• Standalone and consolidated results both showed strong revenue and profit growth year-over-year.

Outlook and guidance

• FY25 EBITDA guidance of ₹3,050-3,100 million (7%+ margin) reaffirmed.

• FY26 expected revenue growth of 30-35% with further margin improvement.

• Long-term export revenue target of 25-30% of total, with current focus on margin over absolute revenue.

• ROCE targeted at 14.5-15% for FY25, moving towards 18-20% by FY27.

• Unutilized IPO proceeds as of 31 December 2024 are planned to be used as per the original schedule.