Syrma SGS Technology

“Considering 1.5x asset turn, the total revenue can be in the range of INR1,200 crores to INR1,350 crores, assuming a full capacity ramp-up in the year 1, that is FY29.”

“And if there is maybe 70% to 80% kind of a capacity utilization, the revenue can be in the range of maybe, as Gujral ji has alluded between INR900 crores to INR1,000 crores.”

“So, going by the projections number, assuming all capex incentives are there, the return ratio should be north of 30%, 35% plus.”

“So that's why I say 17% to 20% margin profile should be available.”

“We're very confident that we'll be delivering a 15%-odd margin without the PLI.”

“It takes about 3 to 6 months to get all the quality certifications, customer approvals and all those things. So that by about September of '27, we should start the volume production.”

“We continue to target a commercial production start of this facility by April '27.”

“So when the profile of the customer changes, it does not necessitate a significant increase in capital investment.”

“The second project, which we have got under the ECMS scheme is the CCL. We intend to commission it in the year '28-'29 as of date.”

“HDI and all that will again come in '28-'29 or before that.”

“So bulk will be 2 layer to 6 layer and some 6 to 8 layer, little in 8 layer above in terms of volume and value.”

“That's a new facility which we have set up in Jodhpur.”

“As on September end, we are carrying an overall open order book visibility position of INR7,420 crores.”

“Of which; auto is approximately 30%, consumer and industrial segment each is contributing approximately 24.5% to 25%, Healthcare is 8% and IT and railways is contributing 12% above.”

“See, we have entered into that framework contract and it will start yielding revenues next year.”

“So as Mr. Gujral said, we see the full impact of this in FY28 and beyond.”

“And this will continue. It's not a one-off contract for this.”

“Automotive sector business recorded a revenue growth of 91% year-on-year basis, increasing its contribution to approximately 26% of operating revenue.”

“As highlighted in our previous call also, apart from automotive segment, we expect this segment should grow faster in the second half of this year.”

“As highlighted by Mr. Gujral also, our export revenue increased by 91% year-on-year to approximately INR514 crores for the quarter and INR901 crores for H1 registering a growth of 80% year-on-year for H1.”

“In H1 consumer segment is much more front loaded so we have done almost INR1,100 crores plus kind of revenue on the consumer segment side. So gradually we may see a taper down of this one particular segment and other segment going up.”

“Over the next 2 to 3 years, we'll see a significant bump in this. So ODM primarily will be in Healthcare, defense, power electronics, RFID and magnetics.”

“So whatever we are guiding is keeping ourselves sort of conscious of the supply chain constraint not on the demand side. Demand side, we are very, very bullish.”

“See, as we have all the time been saying, we don't work on quarter-on-quarter basis and a 71% growth in first half is because some of the orders of the customers have been front-loaded. So we expect that rationalization should come in.”

“The automotive sector is very bullish and keeps increasing its demand quarter-on-quarter or month-on-month or whatever it is. So it compounds the problem of supply chain constraint.”

“The customer would give us a longer visibility, a longer commitment for the longer lead items. So that sort of assures us that the business going forward would continue to grow at that pace.”

“I think we are well placed to deliver better than the industry growth rate while maintaining fiscal discipline”

“The absolute figure is being maintained, but the margin profile does take a small hit because you get the same value addition on a higher base of the cost push.”

“This would result in '28-'29 a significant bump up in our margin profile because PCB project is comparatively margin accretive.”

“Our EBITDA margin for H1 is 9.9% as compared to 10.1% last year and despite a slight in the operating EBITDA margin, our absolute profitability continues to increase substantially.”

“See, the cost push typically has been around 5%-odd. So we have shown a material margin decline of -- material cost increase of about 3%, but that would also be because of the product mix.”

“Yes, in the initial year, when the capacity utilization are maybe around 40%, it can be a little lower. Still, we do not expect a PAT loss for this period as of now.”

“Last quarter my net working capital had gone up to about 71 days. It has come down back to 63 days.”

“During H1 FY27, our net operating cash flows was approximately INR120 crores resulting into OCF to EBITDA conversion of approximately 34% for the H1.”

“As of September '26, we continued to maintain a net cash position of INR258 crores supported by a strong healthy treasury balance position of approximately INR1,000 crores and a gross debt position of INR746 crores.”

“See, my inventory from March of '26 has gone up from INR1,000 crores-odd to INR1,570 crores, but number of days it is still 71.”

“But on an annualized basis, we will strive and we are sort of focused on maintaining that fiscal discipline on working capital, and it could be anything between 60 to 65 days.”

“Even if I do $10 million, $20 million, it doesn't alter my top line; but they are very high margin accretive projects.”

“But we are interested and hopefully, we should have something concrete in the next 6 months.”

“On Elemaster, we commissioned the factory in September of '26, which is about 60 days ago.”

“So this year, we don't expect a sizable revenue from the Elemaster joint venture in that entity.”

“So Elcome has contributed approximately INR135 crores of revenue during H1 into my consolidated revenue.”

“And we expect that for the industry and the chambers and the trade that the supply chain constraints will remain for the next 5 to 6 months and are expected to ease out only in April to June of '27.”

“It is expected to continue for the next 6 to 9 months. And what the analysts, the trade, the industry says somewhere in Q1 of FY28, we could see some stabilization or easing of the supply chain.”

“The dampening of the growth; which I'm saying that you are saying if you have grown at 71%, why you're saying 45% for the full year; is essentially driven by your concerns on the supply chain which as of date doesn't seem to be easing out.”

“And what happens after the midterm elections, what happens in Middle East; these are all conjections. So I would rather sort of err on the side of caution.”

“We also have a pass-through mechanism related to the foreign exchange impact for almost all of our large businesses.”

“None of my customers accounting for -- 1 odd customer maybe about 12% to 14%, but all other customers would be less than 10% of my revenue.”

“Our consolidated total revenue for quarter 2 FY27 is approximately INR2,000 crores registering a strong year-on-year growth of 73% and sequential growth of 25%.”

“Operating EBITDA for quarter 2 increased by 68% to INR193 crores and for H1 it is INR355 crores with a 68% growth on a Y-o-Y basis.”

“Similar way, PAT for the quarter grew by 87% to INR124 crores and for H1, it grew by 98% to INR230 crores.”

“The return for this period H1 adjusted annual ROCE is 21.4% reflecting improving working capital productivity.”