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

Executive summary

• Q3 FY25 consolidated revenue reached ₹8,915 million, up 24% year-over-year, with nine-month revenue at ₹28,973 million, up 40% year-over-year.

• Q3 FY25 net profit (PAT) was ₹530 million, a 161% increase year-over-year, with PAT margin at 6%.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved and reviewed by the Board and auditors, with no material misstatements noted.

• Export revenue accounted for 23% of Q3 FY25 revenue, impacted by weakness in Germany but expected to rebound in FY26.

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

Financial highlights

• Q3 FY25 EBITDA was ₹1,013 million, up 96% year-over-year, with an EBITDA margin of 11.4%; nine-month EBITDA margin at 7.2%.

• Q3 FY25 PBT was ₹657 million, up 144% year-over-year; nine months PBT was ₹1,460 million.

• Gross margin for Q3 FY25 was 26.7%, up 200 bps QoQ; nine months: 21.3%.

• Q3 FY25 PAT margin was 5.9%-6%; nine months PAT: ₹1,130 million.

• Export revenue as a share of operations increased to 23% in Q3 FY25 from 20% in 9M FY25.

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.

• Management highlighted forward-looking statements are subject to regulatory, competitive, and macroeconomic risks.