Symphony Limited Reports 40% Revenue Decline Amid Air Cooler Inventory Overhang
Symphony Limited experienced a 40% year-on-year decrease in standalone revenue due to inventory overhang in the General Trade channel for air coolers. EBITDA margin fell to 17.30% from 27.80%. The board approved a second interim dividend of ₹1.00 per share. Despite overall decline, round-the-year products showed growth. The company expanded its product range, including AirForce and water heater variants. Symphony recovered ₹4.00 crore from Pathways, totaling ₹8.50 crore year-to-date. International operations showed mixed results, with GSK China progressing towards debt-free status and Climate Holdings Australia registering growth.
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Symphony Limited , a leading player in the air cooling solutions market, has reported a significant decline in its financial performance for the recent quarter. The company's standalone revenue fell by 40% year-on-year, primarily attributed to inventory overhang in the General Trade channel for air coolers.
Key Financial Highlights
- Revenue: 40% year-on-year decline in standalone revenue
- EBITDA Margin: Fell to 17.30% from 27.80% in the previous year
- Dividend: Board approved a second interim dividend of ₹1.00 per share
Profitability Under Pressure
The company's EBITDA margins witnessed a sharp decline, falling to 17.30% from 27.80% in the previous year. This significant decrease in EBITDA margin reflects the company's struggle to maintain operational efficiency in the face of reduced sales. The contraction is attributed to product mix shifts and operating deleverage.
Product Performance
Despite the overall decline, Symphony's round-the-year product portfolio showed some positive signs:
- Large space venti cooling
- Tower fans
- Kitchen cooling fans
- Water heaters
These product categories recorded growth, albeit on a low base. The company has also expanded its product range:
- AirForce range expanded from three to seven SKUs
- Added six new storage water heater variants
- Introduced two new instant water heater variants
Recovery from Pathways
Symphony achieved an additional recovery of ₹4.00 crore from Pathways, bringing the year-to-date recovery to ₹8.50 crore. This recovery is against ₹50.20 crore written off previously.
International Operations
Symphony's international operations showed mixed performance:
- GSK China: Progressing toward debt-free status through IPR monetization of approximately ₹45.00 crore
- Climate Holdings Australia: Registered its third consecutive quarter of year-on-year growth
Looking Ahead
As Symphony grapples with these financial headwinds, investors and market analysts will be keenly watching for any strategic initiatives or operational changes the company might implement to improve its performance in the coming quarters. The management's ability to address the inventory overhang in the General Trade channel and capitalize on the growth in its round-the-year product portfolio will be crucial for Symphony's path forward.
Symphony's focus on product diversification, as evidenced by the expansion of its AirForce range and water heater variants, may help in addressing the current downtrend. The company's performance in both domestic and international markets in the coming quarters will be a key indicator of its resilience and adaptability in challenging economic conditions.
Historical Stock Returns for Symphony
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.16% | +2.56% | -1.81% | -25.72% | -37.00% | -3.24% |
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