News

Tuesday
October, 8

Syrma SGS Tech’s order book more than doubles to ₹3,000 crore

Featured in:


Syrma SGS Technologies’ order book for it stands at almost ₹3,000 crore, up from ₹1,200 crore in the previous fiscal year, the company’s managing director Jasbir Singh Gujral said in the company’s FY23 annual report. The company, which got listed a year ago, offers customised end-to-end solutions for RFID tags and inlays, high-frequency magnetic components and automatic tester development services.

The company, belonging to the Tandon group, which started its first manufacturing unit in 1976 for the manufacture of floppy drives for IBM, for the fiscal ending March 31, 2023 reported a net profit of ₹123 crore on revenue of ₹2,092 crore. Nearly 70 per cent of revenue is sourced from the domestic market.

The company’s operations span diverse sectors, from automotive and industrial to healthcare and railways & IT, where the integration of advanced electronics is transforming conventional paradigms. Navigating trends such as the rise in Internet of Things devices, the global electric vehicle revolution and the explosion of telehealth. The company leverages these opportunities for growth and innovation.

The global electrical and electronics market grew from $3454.94 billion in CY 2022 to $3739.37 billion in CY 2023, at a compound annual growth rate of 8.2 per cent. The advent of digital technologies such as the internet of things and advanced connectivity solutions like 5G is expected to drive the demand for innovative electronic devices. Consequently, the market for electronic equipment manufacturing is projected to witness substantial growth during 2023-2027, the company said on the business opportunities.

The government’s focus on promoting indigenous manufacturing, along with the ‘China +1’ strategy pursued by original equipment manufacturers looking to establish manufacturing operations in India, has further contributed to the growth. This shift to strengthen India’s position as an electronics manufacturing hub, shall extend beyond the mobile and consumer-focused sectors. Additionally, the rise in domestic consumption and OEMs’ inclination towards India for manufacturing operations have been significant driving factors.

The company plans to implement several strategies for its sustained growth, including enhanced opportunities for technological innovation; establish a specialised facility to enhance design capabilities for emerging areas and new age technologies; invest in new infrastructure and maintain lower operating expenses while sustaining quality and make strategic acquisitions in order to pursue inorganic growth Increase scale, the annual report said.

CARE Ratings in April said Syrma SGS has a strong customer base, including several globally-reputed companies with whom it has well-established relationships built over a long period.

Post the IPO resulting in inflows of ₹766 crore, the net-worth has increased to ₹1,330 crore as on September 30, 2022 from ₹463 crore as on March 31, 2022. The company has planned a capex of ₹570 crore for which it has raised a loan of ₹90 crore and ₹403 crore of IPO funds is also set aside. With the major part of the capex being funded out of the IPO proceeds, CARE Ratings expects the company to maintain a healthy capital structure supported by adequate cash flows and lower debt dependence, CARE Ratings said..

At the time of filing this report, the company’s share on the National Stock Exchange was trading at ₹466.85, up by 1.13 per cent.





Source link

Find us on

Latest articles

- Advertisement - spot_imgspot_img

Related articles

Maharashtra Govt Approves $10 Billion Proposal By Israel’s Tower...

Maharashtra Govt Approves $10 Billion Proposal By Israel's Tower Semiconductor And Adani Group To Set Up Chip...

Rosler & AM Solutions To Showcase Advanced Finishing Technologies...

RÖSLER & AM SOLUTIONS TO SHOWCASE ADVANCED FINISHING TECHNOLOGIES AT MEDICAL TECHNOLOGY IRELAND 2024 Rösler Group and its...

New PA6 and UHMWPE Compound Optimizes Bridge Bearing Properties

Better than PTFE and UHMWPE: New PA6 and UHMWPE Compound Optimizes Bridge Bearing Properties   MKSM, a new bridge...

The Number Of Bitcoin Millionaires Has Soared 111% In...

The Number Of Bitcoin Millionaires Has Soared 111% In The Last Year As The Cryptocurrency Rallies The number...

3DPRINTUK CELEBRATES THE LAUNCH OF THE FIRST COMMERCIALLY AVAILABLE...

3DPRINTUK CELEBRATES THE LAUNCH OF THE FIRST COMMERCIALLY AVAILABLE SAF MACHINE IN THE UK WITH FREE 3D...

Ethereal Machines Raises US$13 Million to Boost Advanced Manufacturing...

Ethereal Machines Raises US$13 Million to Boost Advanced Manufacturing in India he funds raised will be utilized...