Syrma SGS Technology Limited · NSE:SYRMA
Syrma SGS Technology — Q3 FY2023 Earnings Presentation
22 slides from Syrma SGS Technology's earnings presentation, February 2023
Slide 1: Future of Electronic System Design and Manufacturing (ESDM)
Future of Electronic System Design and Manufacturing (ESDM) Through Innovation and Technology February 2023
Slide 2: Who we are
Who we are Product capabilities Value creation for customers Leaders in high Higher margins Diversified Across industry Strong R&D Huge export mix flexible and high growth products verticals capabilities market volume product1 segment Printed Circuit Board Assemblies Product Post sale (PCBA) lifecyc
Slide 3: State of the art manufacturing infrastructure with strong R&D capabilities and robust supply chain
State of the art manufacturing infrastructure with strong R&D capabilities and robust supply chain Strategically located 11 manufacturing facilities Three dedicated R&D facilities - 1 in Germany and 2 in India Strong R&D led support to drive ODM revenues and 13 improvement in margins Production Hima
Slide 4: Engineering… key to high margin play
Engineering… key to high margin play High Volume Mobile Phones RFID Consumer IoT Lighting Low Margin High Margin IT Automotive Telecom Industrial Medical Devices Magnetics Low Volume While Syrma SGS is present across verticals it operates primarily in the high margin products Syrma SGS
Slide 5: Enduring relationships with marquee customers globally
Enduring relationships with marquee customers globally Diversified industry presence1 Global presence 24+ countries 35% Serving across globe, including USA, UK, Germany, Austria Industrial 200+ customers Cater to over 200 customers in FY22 20% 26%2 CAGR Consumer Increase in wallet share of top 20 cu
Slide 6: Global EMS market expected to reach ~USD 1 Tn by 2025 with Indian EMS market outpacing global trend
Global EMS market expected to reach ~USD 1 Tn by 2025 with Indian EMS market outpacing global trend India’s share in global EMS market to increase significantly and grow at a CAGR of ~41% EMS market break-up industry wise FY26E Mobile Application 3% 2020 – USD 804 Bn 2025E – USD 1,002 Bn Our 2% 1% L
Slide 7: Factors driving growth in Indian EMS market and future opportunities
Factors driving growth in Indian EMS market and future opportunities Factors driving growth in Indian EMS market Government incentives such as Investments by local and global PLI1, MEIS2 and EMC3 China+1 strategy Import substitution players Imports expected to reduce from Make in India and Digital I
Slide 8: Experienced management
Experienced management Senior Management Sandeep Tandon Jasbir S. Gujral Executive Chairman Managing Director ⚫ 18+ years of experience in electronics manufacturing ⚫ 30+ years of experience in EMS sector sector ⚫ Chartered Accountant; Bachelor of Commerce (Honours) ⚫ Bachelor of science in electric
Slide 9: Active Board… Industry leaders
Active Board… Industry leaders Board of Directors Jaideep Tandon Jayesh Doshi Non-Executive Director Non-Executive Director ⚫ Director of Infinx Services Pvt Ltd and TIS ⚫ Previously associated with Dalmia Bharat Limited as a International (USA) Inc. WTD and CFO ⚫ Masters in Electrical Engineering f
Slide 10: Financial Highlights
Financial Highlights Q3 FY2023 10
Slide 11: Financial Highlights : Q3 FY23
Financial Highlights : Q3 FY23 ₹ Million Revenue EBITDA 73% YoY 53% YoY ₹ 5,244 ₹ 596 ₹ 551 ₹ 4,748 ₹ 388 ₹ 3,034 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Profit Before Tax Profit After Tax 51% YoY 70% YoY ₹ 451 ₹ 342 ₹ 417 ₹ 288 ₹ 298 ₹ 202 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 11
Slide 12: Financial Highlights : 9M FY23
Financial Highlights : 9M FY23 ₹ Million Revenue EBITDA ₹ 13,910 ₹ 1,507 ₹ 1,061 ₹ 8,998 9M FY22 9M FY23 9M FY22 9M FY23 Profit Before Tax Profit After Tax ₹ 1,106 ₹ 802 ₹ 827 ₹ 577 9M FY22 9M FY23 9M FY22 9M FY23 12 Notes: 9M FY22 financials are based on Proforma Consolidated financials.
Slide 13: Brief Financial Summary Q3 FY23
Brief Financial Summary Q3 FY23 ₹ Million Particulars Q3 FY22 Q2 FY23 Q3 FY23 % Change, QoQ % Change, YoY Total Revenue 3,034 4,748 5,244 10.4% 72.9% Gross Profit 1,051 1,450 1,419 (2.1%) 35.0% Margin % 34.7% 30.5% 27.1% (3.5%) (7.6%) Operating Expenses 663 899 823 (8.4%) 24.2% EBITDA 388 551 596 8.
Slide 14: Brief Financial Summary 9M FY23
Brief Financial Summary 9M FY23 ₹ Million Particulars 9M FY22 9M FY23 % Change, YoY Total Revenue 8,998 13,910 54.6% Gross Profit 2,851 4,091 43.5% Margin % 31.7% 29.4% (2.3%) Operating Expenses 1,790 2,584 44.4% EBITDA 1,061 1,507 42.0% Margin % 11.8% 10.8% (1.0%) Depreciation and amortization 183
Slide 15: Industry Segment: Q3 FY23
Industry Segment: Q3 FY23 Revenue (₹ million) QoQ YoY Industry Growth Growth Q3 FY22 Q2 FY23 Q3 FY23 Auto 634 903 1,076 19.2% 69.6% Consumer 518 1,059 2,053 93.9% 296.5% Healthcare 390 504 92 (81.7%) (76.4%) Industrials 1,166 1,770 1,614 (8.8%) 38.4% IT and Railways 309 434 290 (33.2%) (6.0%) Total
Slide 16: Industry Segment: 9M FY23
Industry Segment: 9M FY23 Revenue (₹ million) Industry YoY 9M FY22 9M FY23 Auto 1,631 2,796 71.4% Consumer 1,528 3,890 154.5% Healthcare 1,129 1,162 2.9% Industrials 3,436 4,540 32.1% IT and Railways 1,167 1,301 11.5% Total 8,892 13,689 53.9% 16 Notes: 9M FY22 financials are based on Proforma Consol
Slide 17: Industry Segment: Material Margins
Industry Segment: Material Margins Material Margin (%) Industry Q3 FY22 Q3 FY23 Auto 19.1% 23.3% Consumer 45.6% 19.2% Healthcare 51.8% 45.1% Industrials 33.3% 33.4% IT and Railways 11.0% 15.0% 17
Slide 18: Debt and Cash
Debt and Cash ₹ Million Particulars 31-Dec-21 30-Sep-22 31-Dec-22 Term Loan 79 907 905 Working Capital Loan 1,472 2,071 2,359 Total Debt 1,551 2,978 3,264 Investments 301 8,636 8,363 Cash and Cash Equivalents 510 427 497 Total Cash & Equivalents 811 9,063 8,860 Net Debt / (Cash) 739 (6,085) (5,596)
Slide 19: Financial Ratios
Financial Ratios Particulars Q3 FY22 Q2 FY23 Q3 FY23 EBITDA Margin (%) 12.8% 11.6% 11.4% PAT Margin (%) 6.7% 6.1% 6.5% Net Working Capital Days 96 80 83 Net Debt to EBITDA 0.5 NM NM ROCE (%) 17.0% 12.4% 13.4% ROCE (%)** 22.8% 21.8% 22.5% **ROCE = Annualized 9M EBIT /Average Net Capital Employed base
Slide 20: Multiple competitive advantages + sectoral tailwinds
Multiple competitive advantages + sectoral tailwinds Indian EMS market at an inflexion point, expected to grow by 6x in 5 years Increase in domestic consumption, favorable government policies and China+1 strategy to drive demand in India Amongst the few EMS player in the high margin product segment
Slide 21: Way forward - strategies
Way forward - strategies Solidify and strengthen Pursue inorganic growth Expand customer base, Cater to new age core competitiveness of through strategic geographic reach and products/ industries technology innovation acquisition increase wallet share ⚫ Continue to invest in ⚫ Pursue strategic ⚫ Wid
Slide 22: Thank you
Investors Contact: Thank you Nikhil Gupta, CFA +91 - 11 - 4235 1122 [email protected] www.syrmasgs.com
Syrma SGS Technology — Q3 FY2023 Earnings Presentation on 6ix