- 14 May 2025
- ICICIdirect Research
SYRMA SGS REPORTED HEALTHY SET OF RESULT AS Q4 EBITDA WAS RECORDED AT RS 115 CR
SYRMA - 521 Change: -1.85 (-0.35 %)News: Syrma SGS reported healthy set of result as Q4 EBITDA was recorded at Rs 115.5 cr, up 39.1% YoY and 45.2% QoQ. This was mainly on the back of margin expansion with Q4 EBITDA margin at 12.4%, up by 320 bps QoQ and 510 bps YoY. The margin improvement was mainly led by product mix with increasing proportion of Industrials and healthcare segment. Sequentially, segment revenue of Industrials grew 41% QoQ to Rs 378 crore, healthcare grew 27% QoQ to Rs 93 cr, auto was up by 3% QoQ to Rs 215 cr, IT & Railways was flattish at Rs 50 cr while low margin consumer segment de-grew 30% QoQ to Rs 190 cr. Overall, revenue was up 7% QoQ to Rs 932 cr. PAT was recorded at ₹71.5 cr, up by 58% YoY, 34.8% QoQ. Besides, board has approved Rs 1000 cr QIP and incorporated two subsidiaries to manufacture electronic components, bare PCBs, loading of components onto PCBs and for manufacturing interface cards and other electronic components.
View: Syrma has been able to fast track its roadmap to increase proportion of high margin industrial and healthcare segment. EBITDA margin in Q4 have crossed 12% vs 7-8% runrate. For FY25, EBITDA came at Rs 324 cr vs guidance of ~Rs 305 cr. Broadly, company expected to deliver 30-35% EBITDA growth over medium to long term. Relative valuation reasonable.
Impact: Positive