Unfavorable business mix continues to hurt margins

Company

14 May 2024 | 5 Min Read

Syrma SGS Technology's 4QFY24 results update includes sector, estimates, TP, and rating changes.

Unfavorable business mix continues to impact margins, with operating performance below estimates.

Revenue grew 67% YoY in 4QFY24, but EBITDA margins declined 200bp YoY.

EPS estimates for FY25/FY26 have been cut by ~9%/15% due to performance and business mix.

The company retains a BUY rating with a TP of INR535 (35x FY26E EPS).

The order book stood at ~INR45b as of Mar24, with strong growth expected in exports and capex plans.