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Syrma SGS Technology Earnings Release Q3 FY25 Jan 28th, 2025
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Disclaimer Certain statements in this presentation are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact are statements that could be deemed forward looking statements, including but not limited to the statements containing the words 'planned', 'expects', 'believes', 'strategy', 'opportunity', 'anticipates', 'hopes' or other similar words. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in Electronic System Design and Manufacturing Services including those factors which may affect our cost advantage, wage increases in India, customer acceptances of our services, products and price structures, our ability to attract and retain highly skilled professionals, our ability to integrate acquired assets in a cost effective and timely manner, client concentration, reduced demand for electronics in our key focus areas, disruptions in electronics industry, our ability to successfully complete and integrate potential acquisitions, the success of our brand development efforts, liability for damages on our service contracts, the success of the companies / entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies, and unauthorized use of our property, other risks, uncertainties and general economic conditions affecting our industry. There can be no assurance that the forward-looking statements made herein will prove to be accurate, and issuance of such forward looking statements should not be regarded as a representation by the Company, or any other person, that the objective and plans of the Company will be achieved. All forward looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company. 2
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9M FY25 Performance 3
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4 • Total Revenue ₹ 28,973 Mn up by 40% YoY. Total Revenue • EBITDA ₹ 2,430 Mn up by 43% YoY; EBIDTA margin at 8.4% EBITDA • Export Revenue at 20% of Revenue from Operations. Export Revenue • PBT ₹ 1,458 Mn million up by 37% YoY; PBT margin at 5.0% PBT • PAT ₹ 1,130 Mn up by 43% YoY; PAT margin at 3.9%. PAT Performance Highlights : 9M FY25 • Operating EBITDA ₹ 2,075 Mn up by 53% YoY; OP EBITDA margin at 7.2% Operating EBITDA ₹ million
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₹ 20,631 ₹ 28,973 9MFY24 9MFY25 ₹ 791 ₹ 1,130 9MFY24 9MFY25 ₹ 1,066 ₹ 1,458 9MFY24 9MFY25 ₹ 1,703 ₹ 2,430 9MFY24 9MFY25 Financial Highlights : 9M FY25 5 Total Revenue Profit Before Tax EBITDA Profit After Tax ₹ million
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Brief Financial Summary 9M FY25 6 Particulars 9MFY24 9MFY25 YoY Revenue From Operations 20,283 28,618 41.1% Other Income 348 355 1.9% Total Revenue 20,631 28,973 40.4% Gross Profit 4,606 6,092 32.3% Margin % 22.7% 21.3% (1.4)% Operating Expenses 3,251 4,017 23.6% EBITDA (Ex Other Income) 1,355 2,075 53.1% Margin % (Ex Other Income) 6.7% 7.2% 0.6% EBITDA 1,703 2,430 42.7% Margin % 8.3% 8.4% 0.1% Depreciation and amortization 356 543 52.4% Finance Cost 281 428 52.5% PBT 1,066 1,458 36.8% Margin % 5.2% 5.0% (0.1)% Tax 261 307 17.5% PAT 791 1,130 42.8% Margin % 3.8% 3.9% 0.1% ₹ million
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Industry Segment: 9M FY25 7 Industry Revenue YoY 9M FY24 9M FY25 Auto 4,686 6,067 29% Consumer 7,388 11,585 57% Healthcare 1,362 1,983 46% Industrials 5,799 7,264 25% IT and Railways 1,047 1,719 64% Total 20,283 28,618 41% ₹ million
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Q3 FY25 Performance 8
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9 • Total Revenue ₹ 8,915 Mn up 24% YoY. Total Revenue • EBITDA ₹ 1,013 Mn up by 96% YoY; EBIDTA margin at 11.4% EBITDA • Export Revenue at 23% of Revenue from Operations. Export Revenue • PBT ₹ 657 Mn up by 144% YoY; PBT margin at 7.4% PBT • PAT ₹ 530 Mn up by 161% YoY; PAT margin at 5.9% PAT Performance Highlights : Q3 FY25 • Operating EBITDA ₹ 791 Mn up by 88% YoY; OP EBITDA margin at 9.1% Operating EBITDA ₹ million
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₹ 270 507 ₹ 657 Q3 FY24 Q2 FY25 Q3 FY25 ₹ 203 396 ₹ 530 Q3 FY24 Q2 FY25 Q3 FY25 ₹ 516 810 ₹ 1,013 Q3 FY24 Q2 FY25 Q3 FY25 ₹ 7,188 ₹ 8,428 ₹ 8,915 Q3 FY24 Q2 FY25 Q3 FY25 Financial Highlights : Q3 FY25 10 Total Revenue Profit Before Tax EBITDA Profit After Tax 24% YoY 96% YoY 144% YoY 161% YoY ₹ million
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Brief Financial Summary Q3 FY25 11 Particulars Q3 FY24 Q2 FY25 Q3 FY25 QoQ YoY Revenue From Operations 7,093 8,356 8,692 4.0% 22.5% Other Income 95 72 223 211.4% 133.7% Total Revenue 7,188 8,428 8,915 5.8% 24.0% Gross Profit 1,620 2,062 2,319 12.5% 43.1% Margin % 22.8% 24.7% 26.7% 2.0% 3.8% Operating Expenses 1,200 1,324 1,528 15.5% 27.4% EBITDA (Ex Other Income) 420 738 791 7.1% 88.1% Margin % (Ex Other Income) 5.9% 8.8% 9.1% 0.3% 3.2% EBITDA 516 810 1,013 25.1% 96.5% Margin % 7.2% 9.6% 11.4% 1.8% 4.2% Depreciation and amortization 139 167 202 20.9% 45.4% Finance Cost 107 136 154 13.6% 44.4% PBT 270 507 657 29.6% 143.6% Margin % 3.8% 6.0% 7.4% 1.4% 3.6% Tax 67 110 105 (4.6)% 57.7% PAT 203 396 530 33.7% 161.3% Margin % 2.8% 4.7% 5.9% 1.2% 3.1% ₹ million
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Industry Segment: Q3 FY25 12 Industry Revenue QoQ YoY Q3 FY24 Q2 FY25 Q3 FY25 Auto 1,510 2,109 2,081 (1%) 38% Consumer 2,544 2,715 2,704 (0%) 6% Healthcare 693 661 734 11% 6% Industrials 1,955 2,439 2,674 10% 37% IT and Railways 365 405 500 23% 37% Total 7,067 8,327 8,692 4% 23% ₹ million
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Financial Ratios 13 **ROCE = Annualized EBIT /Average Net Capital Employed based on the Capital employed as on 31st Dec’ 24 & 31st Dec’ 23 (adjusted for goodwill and unutilized IPO proceeds). Particulars Q3 FY24 Q2 FY25 Q3 FY25 EBITDA Margin (Ex Other Income, %) 5.9% 8.8% 9.1% EBITDA Margin (%) 7.2% 9.6% 11.4% PBT Margin (%) 3.8% 6.0% 7.4% PAT Margin (%) 2.8% 4.7% 5.9% Net Debt to EBITDA (L TM) 0.3 0.7 0.9 Debt to Equity 0.3 0.4 0.4 ROCE (%) 7.7% 8.3% 9.5% ROCE (%, Adj for IPO Money & Goodwill) 12.5% 10.9% 12.4%
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Debt and Cash 14 Particulars 31-Dec-23 31-Mar-24 31-Dec-24 Term Loan 882 872 949 Working Capital Loan 4056 4,891 5,904 Total Debt 4939 5,763 6,853 Investments 3613 3,158 1,951 Cash and Cash Equivalents 670 856 2,172 Total Cash & Equivalents 4283 4,014 4,124 Net Debt / (Cash) 656 1,749 2,729 ₹ million
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Thank you www.syrmasgs.com/investor-relations/ Investors Contact: Nikhil Gupta, CFA Head – Investor Relations +91 11 4700 2122 investor.relations@syrmasgs.com