Syrma SGS profit margins dip, stock plunges 18% in Q4FY24

Syrma yrma SGS Technology witnessed a sharp decline of 17.7%, with its shares dropping to Rs 387.75 each on the BSE during Monday's intraday trading session.

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This downturn occurred as the company experienced a contraction in profit margins during the March quarter of FY24 (Q4FY24). The gross profit margin and EBITDA margin of Syrma SGS contracted by 430bps and 222bps, respectively, on a year-on-year basis, primarily due to increased commodity costs and shifts in revenue composition. Consequently, the company's overall profitability was negatively impacted.

Syrma SGS' adjusted net profit declined 17.5 per cent Yo-Y to Rs 452.14 crore.

Operationally, however, revenue from operations clocked a notable increase of 67 per cent Y-o-Y to Rs 1,134.09 crore in Q4FY24. Ebitda, too, grew 24.4 per cent Y-o-Y.