Sharing the company’s ambitious plans for the coming years, Jasbir Singh Gujral, Managing Director of Syrma SGS Technologies, stated; “We should be doing anything between ₹5,200-5,500 crore revenues, which would be the target for next year.”
He added that the company’s plans are in the making, and it will come back with that. “A 7% earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin on the targeted revenue translates into about ₹375 to ₹400 crore of EBITDA in value that is aimed for the next year.”
For the current year, the company has guided a revenue growth of 40-45%, which is expected to result in ₹4,400-4,500 crore in revenues, alongside an EBITDA of ₹310-320 crore.
Gujral emphasised that the company remains confident in its growth outlook, with minimal expected changes to the guidance. However, he noted that any changes in the product mix could lead to minor fluctuations in the revenue growth figures.
Syrma SGS Technologies has a long track record in the smart metering business, which it has been pursuing for the past 15 years.
Gujral said, “The Smart Metering business could do 2 million units this year worth ₹250 crore and target ₹300 crore revenue in this segment next year.”
The company’s growth is further supported by favourable government policies, which have boosted the overall electronics manufacturing services (EMS) sector.
According to analyst firm BNP Paribas, the EMS sector has experienced significant valuation re-rating over the past 1-2 years. The firm also forecasts strong earnings growth momentum for EMS companies, with expectations for an 85% YoY revenue growth in FY25.
The company, which has a market capitalisation of ₹10,741 crore, has seen its shares decline 10% over the last year.
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(Edited by : Unnikrishnan)
First Published: Dec 21, 2024 3:48 PM IST
