Syrma SGS Technology Limited · NSE:SYRMA
Syrma SGS Technology — Investor Presentation (May 2023)
29 slides from Syrma SGS Technology's investor presentation, May 2023
Slide 1: Syrma SGS Technology Investor Presentation
Syrma SGS Technology Investor Presentation May 2023
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements o
Slide 3: Brief Overview
Brief Overview 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) lif
Slide 4: Our Presence
Our Presence Strategically Located Core Verticals 13 Manufacturing Facilities High Mix Flexible Volume Automotive Himachal 840k+ sq ft Manufacturing Space Haryana Ghaziabad (UP) 7,500+ Workforce 2021 Consumer Industrials ~50% Women Workforce Bangalore 120+ Vendors Healthcare Railways across 12+ coun
Slide 5: Strategically Diversified
Strategically Diversified … … Verticals … Services … Geography DOMESTIC/ EXPORT IT & Railways 9% RFID & Automotive Magnetics 20% 16% Export 31% Industrials 31% Box Build 18% Consumer PCBA Domestic Healthcare 32% 66% 69% 8% Design-led PCBA Manufacturing 20+ Strategic high growth Industry Presence Cus
Slide 6: Automotive & EV
Automotive & EV EV MOBILITY COMBUSTION & ACCESSORIES Dashboard & Infotainment Battery Management System Motor Controller Unit Beacon Engine /Fuel Clusters Control Unit Light Controllers Charging Infrastructure Display Controller Light Controllers Revenue Performance ₹ Million Top Customers FY21-23 4
Slide 7: Consumer
Consumer SMART CONSUMER ELECTRONICS & BLDC FASTTAG & RFID APPLICATIONS 5G SUBSCRIBER DEVICES WATER PURIFICATION & CLEANING SYSTEMS Growing 5G Infrastructure, smart energy distribution and digitally connected Industries. Revenue Performance ₹ Million Top Customers FY21-23 6,597 Revenue CAGR: 80% 2,57
Slide 8: Industrials
Industrials SMART ENERGY METERS INDUSTRIAL POWER SUPPLIES, INDUSTRIAL CLEANING & 5G INFRASTRUCTURE & SOLAR CONTROLLERS PRINTING SMART CITIES Revenue Performance ₹ Million Top Customers FY21-23 Revenue CAGR: 27% 6,422 4,412 3,910 FY21 FY22 FY23 8
Slide 9: Healthcare
Healthcare PERSONAL HEALTHCARE POWER SUPPLIES FOR MEDICAL HIGH-PRECISION DISPENSERS DIGITAL X RAY, SMART CANES DEVICES DEVICES Revenue Performance ₹ Million Top Customers FY21-23 Revenue CAGR: 14% 1,619 1,633 Leading global healthcare company 1,252 FY21 FY22 FY23 9
Slide 10: Railways and IT
Railways and IT SIGNALING SYSTEMS, DOOR RAILWAY CAB EQUIPMENT MEMORY MODULES MOTHERBOARDS CONTROLLERS, BRAKING SYSTEM & ASSEMBLIES Revenue Performance Top Customers ₹ Million 1,802 Leading laptop manufacturing and 1,543 locomotive companies 314 FY21 FY22 FY23 10
Slide 11: Diversification… key to high margin play
Diversification… key to high margin play High Volume Mobile Phones RFID IoT Consumer 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 11
Slide 12: Design and Development Services
Design and Development Services R&D capabilities built over 3 decades Hardware Engineering Technology Centres & Labs 100+ employees in Engineering Original Design & Manufacturing and R&D department, Services Software Engineering & Mechanical Technology Services Three dedicated R&D facilities - 1 in
Slide 13: Key Focus Areas
Key Focus Areas Strengthen core Pursue competitiveness of inorganic Cater to new-age Partnering Efficient use of products and Marquee Clients Capital technology growth through industries innovation strategic acquisition 13
Slide 14: Experienced management
Experienced management Senior Management Sandeep Tandon Jasbir S. Gujral Executive Chairman Managing Director ⚫ 18+ years of experience in electronics manufacturing sector ⚫ 40+ years of leadership experience in electronics ⚫ Bachelor of science in electrical engineering; YPO President’s design and
Slide 15: 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 16: Factors Driving Growth Across Segments
Factors Driving Growth Across Segments Government incentives China+1 strategy Strong Domestic such as PLI1, MEIS2 and Import substitution Demand EMC3 PLI licenses for Telecom and Increasingly Reducing Strong Domestic Demand Reduced Imports through Networking Products and White Reliance on China by a
Slide 17: Industry Outlook Strong Demand Across All Industry Segments
Industry Outlook Auto Consumer Healthcare Industrial Railways & IT Electric Mobility 5G Devices Digitalisation Energy Metering Railway Modernisation Charging Infrastructure Connected smart devices Personal Health 5G Infrastructure Metro Projects Smart Infotainment BLDC Technology Smart Detection Sol
Slide 18: Financial Highlights
Financial Highlights FY2023 18
Slide 19: Performance Highlights : FY23
Performance Highlights : FY23 ₹ million Total Revenue • Total Revenue up 63% YoY to ₹ 20,921 million EBITDA • EBITDA up by 61% YoY to ₹ 2,315 million; EBIDTA margin at 11.1% PBT • PBT up 61% YoY to ₹ 1,787 million; PBT margin at 8.5% PAT • PAT up 61% YoY to ₹ 1,231 million; PAT margin at 5.9% Export
Slide 20: Brief Financial Summary FY23
Brief Financial Summary FY23 ₹ Million Particulars FY22 FY23 % Change, YoY Total Revenue 12,843 20,921 62.9% Gross Profit 3,922 5,517 40.6% Margin % 30.5% 26.4% (4.2%) Operating Expenses 2,485 3,201 28.8% EBITDA 1,437 2,315 61.1% Margin % 11.2% 11.1% (0.1%) Depreciation and amortization 249 312 25.1
Slide 21: Financial Highlights : FY23
Financial Highlights : FY23 ₹ Million Revenue EBITDA ₹ 20,921 ₹ 2,315 ₹ 1,437 ₹ 12,843 FY22 FY23 FY22 FY23 Profit Before Tax Profit After Tax ₹ 1,231 ₹ 1,787 ₹ 765 ₹ 1,108 FY22 FY23 FY22 FY23 21 Notes: FY22 financials are based on Proforma Consolidated financials.
Slide 22: Industry Segments
Industry Segments Revenue (₹ million) Industry YoY FY22 FY23 Auto 2,515 4,029 60.2% Consumer 2,577 6,597 156.0% Healthcare 1,619 1,633 0.9% Industrials 4,412 6,422 45.6% IT and Railways 1,543 1,802 16.7% Total 12,666 20,484 61.7% 22 Notes: FY22 financials are based on Proforma Consolidated financial
Slide 23: Industry Segment: Material Margins
Industry Segment: Material Margins Material Margin (%) Industry FY22 FY23 Auto 20.4% 22.1% Consumer 38.1% 17.1% Healthcare 48.5% 53.9% Industrials 31.4% 29.9% IT and Railways 5.3% 9.8% Notes: FY22 financials are based on Proforma Consolidated financials. 23
Slide 24: Balance Sheet Summary
Balance Sheet Summary ₹ Million ASSETS FY22 FY23 Net Fixed Assets 2,973 4,310 Goodwill & Intagibles 1,214 1,268 Strategic Investments 47 60 Other non-current assets 243 36 Current Assets 6,280 10,939 Treasury 784 8,800 Total Assets 11,542 25,412 EQUITY AND LIABILITIES FY23 FY22 Equity Equity share c
Slide 25: Debt and Cash
Debt and Cash ₹ Million Particulars 31-Mar-22 31-Mar-23 Term Loan 566 899 Working Capital Loan 1,377 2,570 Total Debt 1,942 3,468 Investments 381 8,291 Cash and Cash Equivalents 369 544 Total Cash & Equivalents 750 8,836 Net Debt / (Cash) 1,192 (5,367) 25
Slide 26: Cash Flow Summary
Cash Flow Summary ₹ Million Particulars FY23 PBT 1,787 Add: Depreciation 312 Finance cost 216 Others (310) OCF before WC changes 2,005 Change in Receivables (2,957) Change in Inventory (1,293) Change in Trade Payables 2,483 Change in Other Current Assets/Liabilities (532) Tax paid (397) Total WC Cha
Slide 27: Financial Ratios
Financial Ratios Particulars FY221 FY23 EBITDA Margin (%) 11.2% 11.1% PAT Margin (%) 8.6% 8.5% Net Working Capital Days2 75 74 Net Working Capital Days3 93 90 Net Debt to EBITDA 0.8 NM ROCE (%) 16.8% 15.0% ROCE (%)4 20.2% 23.8% Notes: 1. FY22 financials are based on Proforma Consolidated financials.
Slide 28: FY23 : Awards & Recognitions
FY23 : Awards & Recognitions The Golden Globe Tiger Awards (Asia Edition) Award for “Best In Training & Organizational Development” By Innovation & Technology Excellence Award by Wabtec ELCINA's Special Jury Award for "Electronics Company of the World HRD Congress Corporation Year" for 2021-22; Awar
Slide 29: Thank you
Investors Contact: Thank you Nikhil Gupta, CFA +91 - 11 - 4235 1122 investor.relations@syrmasgs.com www.syrmasgs.com
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