How has been the historical performance of Syrma SGS Tech.?

Revenue and Profit Growth

The company’s net sales have shown a remarkable upward trend, nearly quadrupling from approximately ₹1,020 crores in March 2022 to ₹3,787 crores by March 2025. This growth reflects strong market demand and operational scaling. Correspondingly, total operating income followed the same trajectory, indicating no significant other operating income contributions during this period.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose from ₹94.43 crores in March 2022 to ₹323.32 crores in March 2025, underscoring improved operational efficiency despite rising raw material and employee costs. Including other income, operating profit further increased to ₹372.74 crores in the latest fiscal year.

Profit before tax surged from ₹80.90 crores in March 2022 to ₹237.08 crores in March 2025, while consolidated net profit more than tripled from ₹55.54 crores to ₹169.87 crores over the same period. Earnings per share (EPS) also reflected this growth, rising from ₹4.04 to ₹9.54, signalling enhanced shareholder value.

Cost Structure and Margins

Raw material costs have increased substantially in line with revenue growth, rising from ₹736 crores in March 2022 to ₹2,856 crores in March 2025. Employee costs also nearly tripled, reflecting workforce expansion and wage inflation. Despite these cost pressures, the company maintained a relatively stable operating profit margin, fluctuating between 6.9% and 9.3% over the years, with a slight dip to 8.54% in the latest fiscal year.

Profit after tax (PAT) margin showed some variability, peaking at 6.01% in March 2023 before moderating to 4.87% in March 2025. This suggests that while profitability has grown in absolute terms, margin pressures from costs and interest expenses have impacted relative profitability.

Balance Sheet Strength and Asset Growth

The company’s total assets expanded significantly from ₹1,154 crores in March 2022 to ₹4,202 crores in March 2025, driven by increases in both current and non-current assets. Net block of fixed assets nearly tripled, indicating substantial capital expenditure and capacity enhancement. Inventories and sundry debtors also rose sharply, consistent with higher sales volumes and operational scale.

Shareholders’ funds increased from ₹572 crores to ₹1,750 crores, reflecting retained earnings and capital infusion. The book value per share rose from ₹41.57 to ₹98.29, signalling improved net asset backing per share. Total liabilities grew in tandem, with current liabilities and trade payables increasing notably, which may reflect extended credit terms or working capital requirements.

Cash Flow and Financial Health

Cash flow from operating activities showed volatility, with negative cash flow in March 2024 and March 2023, but a positive turnaround to ₹176 crores in March 2025. Investing activities consistently reflected cash outflows, primarily due to capital expenditure and asset acquisitions. Financing activities fluctuated, with significant inflows in March 2023 and outflows in March 2025, indicating active management of debt and equity financing.

Overall, the company maintained a stable cash and cash equivalents position, closing at ₹80 crores in March 2025, up from ₹59 crores in March 2022, supporting liquidity and operational needs.

Summary of Historical Performance

In summary, Syrma SGS Tech. has exhibited strong historical performance characterised by rapid revenue growth, expanding profitability, and a solidifying balance sheet. The company’s ability to scale operations while managing costs has resulted in improved earnings and shareholder equity. However, margin pressures and fluctuating cash flows highlight areas for ongoing attention. Investors should consider these factors alongside market conditions when evaluating the company’s prospects.

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