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Revenue for Q4: INR 947 crores, a 6% growth quarter-on-quarter.
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Annual Revenue: INR 33,836 crores, a 19% increase year-on-year.
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Export Revenue for Q4: INR 280 crores.
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Annual Export Revenue: INR 860 crores, 23% of total operating revenue.
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Gross Margin for Q4: 27.8%.
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Annual Gross Margin: 22.6%, with a 200 basis point expansion from the previous year.
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Operating EBITDA for Q4: INR 116 crores, a 39% year-on-year growth, with a margin of 12.4%.
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Annual Operating EBITDA: INR 324 crores, with a margin of 8.6%, a 40% increase over the previous year.
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PBT for Q4: INR 93 crores, with a margin of 9.9%.
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Annual PBT: INR 239 crores, with a margin of 6.2%.
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Net Profit (PAT) for Q4: INR 72 crores, with a margin of 7.5%.
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Annual Net Profit (PAT): INR 184 crores, with a margin of 4.8%.
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Net Working Capital Days: 69 days, with a target to reduce to around 60 days.
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Gross Debt: INR 611 crores, with INR 520 crores as working capital debt.
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Net Debt: INR 264 crores.
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Operating Cash Flow: INR 170 crores, with an OCFE/EBITDA ratio of approximately 54%.
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CapEx Investment: INR 180 crores, primarily for greenfield expansion.
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Asset Turnover: 5.5 times.
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Return on Capital Employed (ROCE): 16% on an adjusted basis.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Syrma SGS Technology Ltd (BOM:543573) achieved its target of reducing the consumer business to 35% of global revenues, focusing more on high-margin industrial, automotive, and healthcare sectors.
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The company reported a healthy EBITDA expansion to 8.6%, up from 7% in FY24, indicating improved profitability.
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Syrma SGS Technology Ltd added approximately 20-25 new customers in FY25, which is expected to contribute to revenue growth in FY26 and FY27.
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The company successfully commissioned new facilities in Pune and Germany, consolidating operations and enhancing production capabilities.
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Syrma SGS Technology Ltd received a high ESG percentile score of over 70%, placing it among the top 35 companies globally for ESG compliance.
Negative Points
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The company fell short of its INR1,000 crore export target, achieving only INR860 crore due to tariff uncertainties and a muted EU environment.
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Despite a focus on high-margin sectors, the company anticipates a decline in EBITDA margin guidance from 8.6% to 8% for FY26.
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Working capital days increased to 69, with a shift in the mix of receivables and payables, indicating potential inefficiencies in cash flow management.
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The consumer business, although reduced, still poses challenges with its high volume and low margin nature, impacting overall profitability.
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The company faces uncertainties in the export market due to fluid tariff situations, which could impact future revenue growth.