Syrma SGS stock slides over 6% after firm reports weak September quarter results

Syrma SGS Share Price: Shares of Syrma SGS dipped heavily in the first trading session on BSE on Thursday (November 2) after the company reported weak September quarter results on Wednesday.

The shares were trading lower by 6.66 per cent, or Rs 39.80, at Rs 557.50 each, at 11:31 am on Thursday.

The stock closed at Rs 597.30 on Wednesday evening and opened at Rs 559.95 on Thursday.

It hit the day's high of Rs 579.00 soon before its downward journey began. 

The company's stock has not been doing well for a month as it has dipped 8.72 per cent in the period.

However, its rise in the last six months has been as high as 88.98 per cent, while it has soared by 104.03 per cent year to date (YTD).

In comparison, the benchmark Nifty 50 has slipped 2.10 per cent in the one month, while it has risen 5.35 per cent in the six-month period.

The Nifty 50's rise YTD rise has been 5.06 per cent. 

Syrma SGS Q2 results

The company's consolidated profit after tax remained flat at 28 crore Year-on-Year (YoY).

Its revenue from operations, however, soared 52 per cent to Rs 712 crore compared to Rs 467 crore in the correposnding period last fiscal.

There was a four per cent jump in its EBIDTA to Rs 49 crore in the September quarter against Rs 47 in the same quarter last year.

The margins were down to 6.86 per cent in Q2 compared to 10% YoY.

What you should know about Syrma SGS 

Syrma SGS' board has approved the scheme of amalgamation

In the first phase, the entire business of SGS Infosystems will be merged into SGS Tekniks Manufacturing.

In the second phase, the entire business of SGS Tekniks Manufacturing will be merged into Syrma SGS Technology.

SGS Infosystems is in the business of providing advisory services related to electronics products.

SGS Tekniks Manufacturing is in business of manufacturing electronics products.

Domestic demand for EMS remains strong across segments

The company's growth is in line with the industry growth rate.