Syrma SGS Technology Reports Positive Growth in Q2 FY25 Financial Results

Syrma SGS Technology, a midcap electronics components company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 6 compared to -14 in the previous quarter.

One of the key factors contributing to this growth is the increase in Profit Before Tax (PBT) by 56.4% to Rs 40.65 crore, as compared to the average PBT of the previous four quarters at Rs 25.99 crore. This trend is expected to continue in the near term, indicating a positive outlook for the company.

Similarly, the Profit After Tax (PAT) has also shown a significant growth of 46.1% to Rs 36.24 crore, as compared to the average PAT of the previous four quarters at Rs 24.81 crore. This is a positive sign for the company and its shareholders, as it reflects an increase in profitability.

The company has also shown improvement in its Operating Profit Margin, which is at its highest in the last five quarters at 8.52%. This indicates an increase in efficiency and better management of costs.

However, there are some areas that need improvement for Syrma SGS Tech. For instance, the interest cost has increased by 52.13% over the preceding nine months period, which could be a result of increased borrowings. Additionally, the company’s operating cash flow has been falling each year in the last three years, with the lowest being at Rs -113.61 crore. This indicates a decline in cash revenues from business operations.

Moreover, the company’s net sales for the quarter have fallen by -10.3% to Rs 832.74 crore, as compared to the average net sales of the previous four quarters at Rs 928.11 crore. This is a concerning trend and the company will need to address it in order to maintain its growth trajectory.

In conclusion, Syrma SGS Technology has shown positive financial performance in the quarter ending September 2024, with an increase in PBT, PAT, and operating profit margin. However, there are some areas that need improvement, such as interest cost and net sales. Investors should keep a close eye on the company’s future financial results to make informed decisions.