Syrma SGS Technology’s stock hits a 20% upper circuit after reporting a stellar 161% profit growth in Q3FY25. Electronics manufacturing stock has witnessed a remarkable 20% surge on the stock exchange following the release of its stellar Q3FY25 financial results. Syrma SGS Technology revenue for the quarter increased by 24% YoY, reaching ₹8,915 million, while its profit after tax (PAT) surged by an impressive 161% YoY to ₹530 million. This growth is largely attributed to robust demand from the Auto and Industrial segments. The company has also shown an optimistic outlook for future growth, leveraging industry trends and high consumer demand.
Key Highlights of Q3FY25 Results:
Revenue Growth: Syrma SGS Technology, a prominent player in the electronics manufacturing services (EMS) industry, reported a 24% year-over-year increase in revenue, reaching ₹8,915 million for Q3FY25.
Profit Surge: Profit after tax (PAT) jumped 161% to ₹530 million, reflecting exceptional operational performance.
EBITDA Growth: The company’s EBITDA surged by 96% YoY to ₹1,013 million, highlighting strong profitability.
Nine-Month Performance: For the nine months ended December 31, 2024, Syrma posted a revenue of ₹28,973 million, marking a 40% YoY growth, with a corresponding 43% increase in EBITDA and PAT.
Positive Market Sentiment: The stock’s price shot up by 20% to ₹505.10 per share after the results, reflecting positive investor sentiment.
Electronics Manufacturing Stock Performance and Investor Confidence:
The strong Q3FY25 results have sparked investor optimism, as evidenced by a dramatic 20% rise in Syrma SGS Technology’s stock price on January 29, 2025. The stock opened at ₹455.00, which represented an 8.10% increase from its previous close of ₹420.95. It soon reached a high of ₹505.10, reflecting the positive market reception. By the end of the day, the stock closed at ₹505.10, giving it a market capitalization of ₹8,998.76 crores. This surge in stock price underscores the market’s confidence in the company’s ability to sustain its growth trajectory, especially within the high-demand sectors of Auto and Industrials.
Syrma SGS Technology’s Strong Growth Drivers:
Syrma SGS Technology continues to benefit from its key position in the Electronics Manufacturing Services (EMS) industry, which has seen increased demand across various verticals. The company’s performance in the Auto and Industrial sectors has been a standout, driving revenue growth and bolstering profitability.
Source : https://techovedas.com/electronics-manufacturing-stock-hits-20-upper-circuit-after-surging-strong-q3fy25-results/
