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Syrma SGS Technology Annual Report 2023 Summary

  • Syrma SGS, with over 40 years of experience in precision electronics manufacturing, offers advanced Electronics Manufacturing Services (EMS) solutions to global Original Equipment Manufacturers (OEMs) in more than 20 countries. We specialize in technology-driven engineering, delivering custom solutions including RFID tags, inlays, high-frequency magnetic components, and services like repair, rework, and automatic tester development to meet evolving industry needs.

  • Financial Highlights - FY 2022-23

    1. Total revenue: Rs 20,921 million: 63% YoY

    2. EBITDA: Rs 2,315 million: 61% YoY

    3. PBT: Rs 1,787 million: 61% YoY

    4. PAT: Rs 1,231 million: 61% YoY

    5. Return on Equity (ROE): 11.6%.

    6. Revenue from Domestic market 70% and 30% from exports.

    7. Consumer sector contributes 32% of the total revenue.

  • Company's design-led manufacturing approach continues to be our guiding principle, and we are excited about the growing customer interest in sustainable solutions. The demand for efficient and eco-friendly designs and power systems provides us with numerous opportunities to add value and address evolving needs.

  • The Company will continue to invest in technology infrastructure, embrace IoT, expand into promising markets, and maintain our ethical approach to drive growth and create value for all stakeholders.

  • The company has established a wholly-owned subsidiary, 'Syrma SGS Engineering and Technology Services Limited,' dedicated exclusively to design and development. This move allows us to focus more effectively on design and development tasks, which were getting diluted as manufacturing took center stage in our business.

  • The company has made significant strides in strengthening its marketing teams, expanding its R&D capabilities in Germany, and onboarding major customers across various sectors.

  • The company has received important permissions and is building partnerships, especially in the railways sector, which are anticipated to contribute significantly to its revenue. Additionally, the company has hired experienced professionals to drive its strategic goals.

  • Looking ahead, the company is well-positioned to thrive in the electronic manufacturing industry's transformation, with expansion plans in place to meet growing customer demands.

  • Electronic components play a crucial role in automotive features like advanced driver-assistance systems (ADAS) and infotainment systems, as well as in industrial automation and IoT applications. EMS companies, such as Syrma SGS, are at the forefront of these advancements, playing a key role in digitizing these sectors.

  • The rising middle-class and increased disposable incomes are driving consumer electronics sales, while urbanization and digital adoption in both urban and rural areas are boosting demand for electronics like smartphones, IoT devices, and smart home appliances. This presents significant growth opportunities for the company.

  • There has been an exponential growth in the demand for Internet of Things (IoT) devices and smart consumer electronics worldwide. With our capability to provide services like PCB assemblies, magnetic products and RFID tags, we find ourselves at the nexus of this technological explosion. This increased demand has led to a pressure on supply chains and the need for high-precision, small scale manufacturing.

  • 49% CAGR (2022-2030) estimated for Indian EV market (Source: Economic survey 2023)

  • The integration of advanced electronic systems in the industrial sector for digitization and automation creates a need for the company's expertise in designing and manufacturing these systems.

  • The surge in telehealth and remote patient monitoring services, driven by the pandemic, presents opportunities for the company in the healthcare sector. Its proficiency in creating components like sensors and connectivity solutions is crucial in this evolving healthcare landscape.

  • Company's Core Competencies

    1. 12 state-of-the-art manufacturing facilities across 5 states

    2. 1st in India to manufacture RFID products

    3. Fastest-growing Indian ESDM company

    4. No single client over 5% of total revenue

    5. Global supplier network of 270+ customers in 20+ countries

  • Our plan is to serve a wider range of industries, such as automotive and healthcare, by focusing on businesses with higher returns and adaptable volumes.

  • Sign up for SBTi in the next 24 months, by FY 25

  • While still in the early stages, there are initial signs indicating that India is heading towards a robust investment upswing in both the manufacturing and services industries. The anticipated increase in consumer demand is also expected to positively impact economic growth. As we look forward, the Indian economy remains supported by a foundation of macroeconomic stability.

  • In the coming years, the Company aims to pursue several strategies to ensure sustained growth, including:

    1. Bolster and consolidate the fundamental competitiveness of technology Enhance opportunities for technological innovation

    2. Establish a specialised facility to enhance design capabilities for emerging areas and new age technologies.

    3. Invest in new infrastructure and maintain lower operating expenses while sustaining quality

    4. Make strategic acquisitions in order to pursue inorganic growth

    5. Increase scale, market share and range of products

    6. Permit entry for new clients and seize emerging opportunities.

    7. Improve wallet share, geographic reach, and client base

    8. Increase the number of customers by adding more products

    9. Market current goods and services to new clients and undertake acquisitions

    10. Profit from cross-selling and upselling chances

    11. Concentrate on businesses with flexible profit margins to develop products and services that use smart gadgets, electric vehicles, medical equipment, and existing manufacturing capabilities.



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