Q1 2027 Syrma SGS Technology Ltd Earnings Call Transcript
Key Points
- Robust financial performance with total revenue growing 67% YoY to INR1,604 crores, and PAT surging 112% to INR106 crores.
- Strong export growth of 61% YoY, positioning the company well for deeper integration into the global supply chain.
- ODM sales nearly doubled YoY to INR270 crores, reflecting strong design and manufacturing capabilities.
- Broad-based growth across verticals, with the automotive segment benefiting from increasing EV penetration and new customer onboarding.
- Strategic initiatives progressing well, including the PCB project on track for commercial production by April 2027 and a new JV with Japanese MNC Kaga for EMS manufacturing.
- Supply chain constraints due to geopolitical tensions in the Middle East are causing lead time extensions and shortages of specialty chemicals and components.
- Net working capital days increased from 63 to 71 due to higher inventory levels, leading to a INR340 crores increase in short-term borrowings.
- Industrial segment witnessed moderation on a sequential basis due to rear-ended schedules in the maritime business and lower pickup in smart metering.
- Potential margin pressure from component price inflation, as percentage margins could be affected even with full cost pass-through.
- The company is cautious about entering the semiconductor space until a credible partner is found, potentially missing early opportunities in ISM 2.0.
Ladies and gentlemen, good day, and welcome to the Syrma SGS Technology Q1 FY27 Investors Concall hosted by Axis Capital Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nikhil Kandoi from Axis Capital. Thank you, and over to you, sir.
Nikhil, sir, please go ahead.
Thank you, everyone, for joining the call. We are hosting Syrma SGS Q1 FY27 Concall. We'll now -- I'll hand over the floor to Nikhil Gupta for their opening remarks. Thank you for the opportunity, Syrma management.
Thank you, Nikhil. A very good morning to all of you. On behalf of Syrma SGS family, we welcome you all to the Syrma SGS quarter one and fiscal year 2027 earnings call. We have with us today Mr. J.S. Gujral, Managing Director; Mr. Jayesh Doshi, Whole-Time Director; Mr. Jaidit Singh Brar, Chief Executive Officer; and Mr. Bijay Agrawal, Chief Financial
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