Syrma SGS reports best-ever quarter; Q2 revenue up 73% to Rs 1,999.5 crore

Jasbir Singh Gujral of Syrma SGS

Consolidated revenue rose 73.2% to Rs 1,999.5 crore from Rs 1,154.6 crore a year earlier, marking the company's highest-ever quarterly revenue, it said. EBITDA increased 63.9% to Rs 203.1 crore, although operating margins moderated to 10.2% from 10.7%.

Sequentially, revenue increased 24.7% from Rs 1,603.7 crore in the June quarter, while net profit rose 17.5% from Rs 105.7 crore.

Exports, which accounted for 26% of operating revenue, grew 91% year-on-year during the quarter.

Jasbir Singh Gujral, Managing Director, said the company maintained customer commitments despite industry-wide component constraints, reduced working capital to 63 days and generated strong positive operating cash flow during the first half.

In June, Syrma said it plans to invest Rs 25 crore jointly with Japanese partner Kaga Electronics this fiscal year to strengthen its domestic supply ecosystem.

Last September, Syrma announced plans to invest Rs 1,595 crore in Andhra Pradesh to build “India’s largest multi-layer printed circuit board (PCB) manufacturing facility”. The state government allotted 26.7 acres to the company with a 75% subsidy on land costs under its Electronics Components Manufacturing Policy.

Syrma is developing its PCB business through a joint venture with South Korea’s Shinhyup Electronics.

Ahead of the earnings on Friday, shares of Syrma closed 2.85% lower at Rs 1620.90 apiece on the BSE. Results were declared after market hours.