Syrma SGS Technology Ltd

- The company has taken an enabling resolution to raise funds through equity or debt to stay prepared for any growth opportunities. - No concrete proposals for inorganic acquisitions or fundraising are currently on the table. - The management is evaluating options, particularly for acquisitions in segments like defence, aerospace, and railways. - Any future fundraising will be targeted towards long-term business growth. - Current gross debt stands at INR576 crores, mainly working capital debt (INR490 crores). - The company plans to be free cash flow positive in FY25, with a focus on optimizing working capital to reduce debt reliance. - No immediate plans for debt or equity issuance have been announced; decisions will be communicated once concrete proposals emerge.

- Completed organic capex of ~INR333-340 crores in FY24 across multiple projects (Manesar 3, Chennai, Hosur, Pune, Bawal). - Average asset utilization as of March 2024 is ~65-70%, indicating capacity to grow without immediate new capex. - Planned capex for FY25 is about INR150 crores, mainly for balancing equipment and aimed at FY26 revenue targets. - No concrete inorganic acquisition proposals currently, but management is evaluating opportunities in defense, aerospace, and railways to expand product offerings. - Enabling resolution passed to raise funds for potential organic or inorganic growth opportunities; specific uses to be decided upon firm proposals. - Expansion of 40,000 sq. ft. facility in Stuttgart, Germany planned (fit-out by Q2/Q3 FY25) primarily for integration, with potential future manufacturing. - Commissioning design center in Pune focused on MedTech ODM business expected by Q2 FY25. - Target to optimize working capital and improve operating cash flow alongside these investments.

- Management targets maintaining a high growth trajectory of 40-45% year-on-year revenue growth in the coming years (Page 23). - Exports are expected to continue growing at about 20-30% annually, potentially higher, driven by increased presence in Western Europe and established export base (Pages 22, 23). - Healthcare (MedTech) business projected to grow significantly, around 25-30% in the near term, contributing increasingly to revenue and profitability (Pages 12-13). - Consumer business expected to stabilize between 37-40% of revenues in FY25, with a management goal to reduce this mix to 30-35% over the longer term, shifting focus more towards industrial and automotive segments (Pages 19, 12). - Capacity expansion and operational efficiencies are planned to support this growth, with commissioning of new plants and facilities in Pune and Germany slated for FY25 (Pages 4, 22). - ODM design subsidiary expected to start contributing revenues from FY25 onwards, growing steadily thereafter (Page 21).

- Management targets a **40-45% CAGR growth** in revenue for FY25, continuing a strong growth trajectory seen over the past 3 years (54% YoY in FY24). - **Exports** are expected to grow around **20-30%** in coming years, maintaining their forte with a $100 million export base. - Operating EBITDA margin guidance is maintained at **7% for FY25**, slightly improved from 6.8% in FY24, with quarterly variations possible. - Profitability expected to stabilize with **stable margins** despite rapid growth, focusing on operational efficiencies and cost control. - MedTech vertical is poised to be a significant contributor to bottom line with expected growth of **25-30%** and higher in future years. - Company plans positive **operating cash flow (OCF) in FY25**, with focus on working capital improvement. - No inorganic growth proposals finalized yet, but management is open to strategic acquisitions in defense, aerospace, and railways sectors.

- Current order book visibility is approximately INR 4,500 crores. - Segment-wise breakup: - Consumer business: ~40% of order book - Industrial business: 20% - 25% - Automotive sector: 20% - 22% - Healthcare: 5% - 7% - Balance from IT and railways - Export orders constitute around 22% - 25% of the total order book. - Order book remained flat sequentially (around INR 4,500 crores) due to higher execution in Q4, not due to demand slowdown. - Railway orders visibility: expected INR 45-50 crores in the current year, with potential to reach INR 25-30 crores revenue in the second half of the year post RDSO approval. - Consumer business is expected to constitute 37%-40% of revenues in FY25, included in order book projections.