Syrma SGS Technology was trading in the red on August 2 morning even though the company posted a strong set of numbers for the June quarter of this fiscal and also acquired a medical devices firm.
Syrma SGS Technology, a leading provider of electronics system design and manufacturing services, said on August 1 its profit after tax climbed 65 percent to Rs 28.3 crore in the first quarter from the year-ago period.
Consolidated total revenue was at Rs 623.4 crore, up 59 percent YoY, primarily driven by automotive, consumer and industrial segments.
Consolidated EBITDA was up by 64 percent YoY to Rs 59 crore as against Rs 36 crore in Q1 FY23, it said in a post-market hour filing on August 1.
Syrma SGS also entered into a definitive agreement to acquire a 51 percent stake in Johari Digital Healthcare Limited, an end-to-end design-led manufacturer of electro-medical devices, for a consideration of Rs 229.5 crore.
Additional consideration of up to Rs 28 crore is to be paid on achieving certain pre-determined milestones.
“The acquisition will enable Syrma SGS to enter the lucrative medical devices segment, a fragmented and fast-growing market with high demand for quality and innovation,” it added.
At 11.02 am, the stock was trading at Rs 493.45 on the National Stock Exchange, down 1.1 percent from the previous close.
Syrma SGS has gained 79 percent this year, while the 1-year return stands at 59 percent.
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