Syrma SGS’s Managing Director Jasbir Singh Gujral, while talking to CNBC TV-18, expressed confidence in achieving the company’s FY25 financial targets, projecting a 40-45% revenue increase and an EBITDA margin of 7%.
Following a dip in margins during Q1 due to heightened consumer segment contributions, Syrma SGS has now shifted towards a more balanced sales mix, which is expected to support these targets.
Gujral said, “Now we are coming to a more normalised product mix of sales and we believe that going forward we will achieve the guidance which we have given on the top line which is about a 40-45% growth to about ₹4,500 crore and EBITDA of ₹310 to 320 crore, which translates into about 7%. We are confident of achieving that.”
Gujral elaborated, “Healthcare, medtech, exports, design engineering, followed by industrial and automotive—each one of these high-margin businesses has seen an uptick in Q2.”
Syrma SGS has steadily focused on expanding exports, with a 19% CAGR in export growth up to FY24. By the end of FY25, the company expects export growth to reach 20%, driven by favourable conditions in the second half of the fiscal year. “The second half would be much better,” Gujral assured.
The company’s current order book stands at ₹4,800 crore.
Syrma SGS provides one-stop-solution electronics manufacturing services (EMS) such as product design, quick prototyping, PCB assembly, Box build, repair and rework; and automatic tester development services.
The company, which has a market capitalisation of ₹6,882 crore, has seen its shares declined 35% over the last year.
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(Edited by : Unni Krishnan)
