Syrma SGS Sees Profit Surge With Strategic Business Shift

Syrma SGS has reported a 67% increase in profit after tax to Rs 66.3 crore for the September quarter due to a strategic focus on high-margin businesses. The company is also expanding into the defense sector with the acquisition of a 60% stake in Elcome.

Syrma SGS has recorded a notable 67% rise in its consolidated profit after tax (PAT), amounting to Rs 66.3 crore during the September quarter. According to a company official, this growth is attributed to a strategic pivot towards high-margin businesses.

The firm's Managing Director, J S Gujral, explained that their re-strategized business model led to a gradual tapering down of low-margin, high-volume consumer operations. Significant growth was seen in export, automotive, industrial, and healthcare sectors, collectively boosting the company's performance.

Looking forward, Syrma SGS sets eyes on the defense sector by acquiring a 60% stake in Elcome, thereby entering the navigation and communication systems market. Gujral emphasized the potential for this venture to enhance their governance and operational systems.

(With inputs from agencies.)