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Time of India
15-05-2025
- Business
- Time of India
Syrma SGS Technology Q4 profit zooms 87%, revenue drops 18%
New Delhi: Electronics systems design and manufacturing firm Syrma SGS Technology has reported an 87% jump in consolidated net profit to ₹65.4 crore in the March quarter of FY25 due to higher margin, even though revenue from operations fell 18.4%. The Mumbai-headquartered firm shifted its focus away from low-margin consumer business to high-value segments like industrial and healthcare, which together accounted for 50% of Q4 income. "Over the past year, we have strategically pivoted our exposure from the consumer business to other businesses. This calibrated move away from low-margin business towards engineering and design-led manufacturing has resulted in a significant improvement in our margin profile, even as top-line growth moderated. The margin expansion was driven by this improved mix, with high-value, high-margin segments contributing a greater share to our overall business," Syrma SGS MD Jasbir Singh Gujral told PTI. The company had logged a net profit, attributable to owners of the holding company, of ₹34.9 crore in the January-March quarter of FY24. During the quarter, its revenue from operations was 18.4% lower at ₹924.3 crore against ₹1,134.2 crore in the year-ago period. For the full financial year 2024-25, its profit grew 58.2% to ₹169.8 crore, from ₹107.3 crore in FY24. The company had logged a net profit, attributable to owners of the holding company, of ₹34.9 crore in the January-March quarter of FY24. Revenue in FY25 increased 20% year-on-year to ₹3,786.6 crore. Looking ahead, Syrma SGS is projecting a 30-35% increase in revenue for FY26. The firm on-boarded 25 new customers in FY25, including export clients. The benefits from these new customers were not fully reflected in FY25 results, in addition to pending ramp-ups of a few other old export clients, Gujral said. This gives the company confidence of good growth in exports in FY26, he added. Syrma SGS is looking to cross ₹1,000 crore in export value in FY26, up from ₹860 crore in FY25. "The global supply chain realignment and heightened interest from international customers in India as a reliable manufacturing base are providing strong tailwinds. Inbound inquiries and plant visits from global players are at an all-time high, indicating robust demand and future order inflows," Gujral said. Further, the company's board has approved raising of funds via Qualified Institutional Placement (QIP), "for an aggregate amount not exceeding ₹1,000 crore". Gujral clarified that the existing organic business does not require additional funding, given its near-zero-debt status and strong balance sheet. "This fundraise is strategically positioned for two potential requirements. First, we're actively exploring inorganic acquisition opportunities that align with our growth vision. Second, we're evaluating various component manufacturing verticals under the PLI ( Production Linked Incentive ) scheme, with applications being filed before the July 31 deadline. For component manufacturing, investments could range from ₹50 crore to ₹1,000 crore over a five-year period, depending on the component type. We're currently in discussions with potential technology partners for various components, he said.
Mint
14-05-2025
- Business
- Mint
New ₹3,700-crore HCL-Foxconn JV to help India localise display manufacturing
NEW DELHI : India's display manufacturing industry received a boost on Wednesday when the Union cabinet approved the India Semiconductor Mission's (ISM) fourth chip-testing facility and the fifth semiconductor project overall. The ₹3,700-crore ($433 million) project, first floated in January 2024, is an outsourced semiconductor assembly and testing (Osat) facility being developed by IT services firm HCL Technologies Ltd in partnership with Taiwanese contract manufacturer Hon Hai Precision Industry Co. Ltd, better known as Foxconn. Also Read: What China's CEO meet means for India's top semiconductor stocks However, the HCL-Foxconn joint venture is the first 'advanced manufacturing Osat" in the country, catering specifically to displays, making it the first chip-testing project of its kind. It will help the country localise the manufacturing of displays used in mobile phones and laptops, a senior official with direct knowledge of the matter told Mint on the condition of anonymity. The facility, likely to become operational by 2027, will target a monthly output of 36 million chips, made from processing 20,000 semiconductor wafers per month. The fifth OSAT in the country, which aims for a $500-billion electronics economy in the next five years, comes as the semiconductor industry awaits cabinet approval for the second tranche of ISM incentives worth up to $20 billion. Mint reported in September 2024 that incentives could focus more on chip and display fabs than on Osat projects. ISM second phase However, the HCL-Foxconn Osat is in line with the overall strategy of the ISM second phase, according to industry stakeholders. While chip-testing plants are typically of low margin and value, 'the ideal strategy to set up Osats in India would either be to partner with a world-class chip and electronics brand that has existing clients and can draw business to the country, or for new forms of technology that will contribute to increasing value addition in new product categories," Jasbir Singh Gujral, managing director of electronics manufacturing firm Syrma SGS Technology Ltd, told Mint. Also Read: Adani plans to invest $3 bn to kickstart semiconductor biz via JVs with two Israeli firms This project, for reference, is the first project that will help India localise displays to a greater extent. This, though, is not the same as a display fabrication plant, which is responsible for the end-to-end manufacturing of the semiconductor components of a display. It is what generates the second-highest percentage of domestic value for products such as smartphones and laptops (apart from the primary processor itself). But, according to the stakeholders, it is also highly complex and expensive to establish. 'More than that, the HCL-Foxconn project is what will produce high-value display driver integrated circuits (DDICs). These are far more complex devices than the general-purpose ICs that projects such as the Tata Electronics Osat are set to produce, which will deliver higher per-chip dollar value," said Ashok Chandak, president of India Electronics and Semiconductor Association (Iesa). 'These projects are what will eventually help India realise its electronics goal, since it will, for the first time, add value to the display sector in all of electronics manufacturing in the country. The demand for display ICs is high, and establishing this project will help India eventually attract a full-scale display fab, or other projects in both upstream and downstream divisions of the Indian semiconductor industry," Chandak added. Also Read: There are no shortcuts to leadership in the field of semiconductors Other Osats being built in India are Tata Electronics' chip-testing plant in Assam, which plans to make 48 million chips per day at a net investment of around $3.2 billion; Kaynes Technology's Osat in Bengaluru, which will produce 6.3 million chips per day at an investment of $388 million; Murugappa Group's CG Semi, in joint venture with Japan's Renesas, targets the production of 15 million chips per day at a net investment of $222 million. Chandak affirmed that while each of these projects will produce more chips, the HCL-Foxconn project's assembly of display chips is the cause for the latter's lower volume, but higher value. The project is being built near Jewar Airport, close to Noida, Uttar Pradesh.
