Symphony Limited
Q4 FY25
Call date · May 08, 2025
1 · Management Commentary
Key Positives
- Achieved record consolidated revenue of ₹1,576 crores (36% YoY growth); standalone revenue surpassed ₹1,000 crores for the first time at ₹1,182 crores (49% growth).
- Highest ever annual and quarterly consolidated EBITDA and PAT; EBITDA up 83% to ₹316 crores, PAT up 44% to ₹213 crores.
- Significant EBITDA margin expansion: consolidated margin up >500 bps to 20.05%; standalone margin up >400 bps to 24.25%.
- Strong performance from GSK China (revenue up 126%, EBITDA up 337%) and IMPCO Mexico (revenue up 22%, PAT up 63%).
- Robust growth in alternate channels, semi-urban/rural markets, and adjacent categories (now high double-digit % of sales).
- Final dividend of ₹8/share (400% of face value); total payout ₹178 crores (84% of consolidated profit).
Key Negatives
- Climate Technologies Australia continues to underperform, with losses and a 7% revenue decline; impairment of ₹50 crores taken.
- Exceptional items totaling ₹50 crores at consolidated level (mainly Pathways write-off and subsidiary impairments).
- Erratic weather post-March led to muted performance in the early summer season; channel inventory slightly higher than last year.
- Brazil subsidiary posted a loss (PAT negative ₹3 crores) due to forex and shipping costs.
Forward Guidance
- No quantitative forward-looking numbers provided as per IR policy.
- Focus on deepening penetration in semi-urban/rural markets, modern trade, D2C, and institutional sales.
- Continued expansion in adjacent categories (tower fans, kitchen cooling fans, water heaters, large space cooling).
- Exiting IMPCO Mexico and Climate Technologies Australia to sharpen focus on profitable domestic and export opportunities; process just begun, value realization TBD.
- U.S. market presents significant new opportunity due to tariffs on Chinese competitors; strong inquiries received.
- Expectation of further growth in exports, especially to U.S., Middle East, Europe, and Africa.
2 · Q&A Highlights
Q 1 (Composite): How has erratic weather impacted channel inventory and sales momentum in Q1 FY26?
A (Management):
– Channel inventory is slightly higher than last year, but still early in the season; significant weeks remain for sales.
– April performance is best in industry vs. peers; last year was exceptional, but current performance is decent compared to prior years.
Q 2 (Composite): What is the progress and outlook for LSV, Bharat Range, and adjacent categories?
A (Management):
– LSV and Bharat Range are growing in strong double digits; Bharat Range expanded with new products for rural markets.
– Adjacent categories (tower fans, water heaters, etc.) now contribute a high double-digit percentage of standalone sales.
Q 3 (Composite): Any notable shifts in channel dynamics, e-commerce, or strategic partnerships?
A (Management):
– No marked shift in channel mix yet; focus remains on rural/semi-urban, modern trade, and adjacent categories.
– E-commerce and institutional sales are incremental focus areas.
Q 4 (Composite): Update on the sale of IMPCO Mexico and Climate Technologies Australia—expected realization and process?
A (Management):
– Process has just begun; investment banker appointed, value realization difficult to specify at this stage.
– Impairment is a non-cash, auditor-recommended accounting adjustment; actual sale proceeds may differ.
Q 5 (Composite): Export performance and outlook, especially in light of new U.S. opportunities?
A (Management):
– Exports at ₹117 crores; strong growth in Middle East, Africa, Europe, and Sri Lanka.
– U.S. market is a major opportunity due to tariffs on China; significant inquiries from top U.S. retailers, but supply constraints this season.
– Confident that export business can double in the next 3 years.
Q 6 (Composite): Employee cost trends and impact on margins?
A (Management):
– No reduction in absolute employee cost; margin improvement due to operating leverage and economies of scale.
Q 7 (Composite): Rationale for exiting Climate Technologies Australia despite market potential?
A (Management):
– Despite turnaround efforts and large addressable market, performance has lagged; management bandwidth better deployed in higher-potential markets (e.g., U.S., Brazil).
Q 8 (Composite): Plans for entering the BLDC fan market?
A (Management):
– BLDC technology already used in coolers and tower fans; evaluating entry into BLDC fans, will consider if it meets margin and strategic criteria.
3 · Other Key Numbers
- Consolidated revenue: ₹1,576 crores (36% YoY growth)
- Standalone revenue: ₹1,182 crores (49% YoY growth)
- Consolidated EBITDA: ₹316 crores (up from ₹173 crores)
- Consolidated PAT: ₹213 crores (after ₹50 crores exceptional item)
- Standalone PAT: ₹176 crores (after ₹91 crores exceptional items); notional PAT without exceptionals: ₹247 crores
- Dividend: ₹8/share; total payout ₹178 crores (84% of profit)
- Capital employed (consolidated): ₹248 crores (down from >₹300 crores)
- ROCE (core business): 101%; RONW: 28% (consolidated)
- Treasury (standalone): ₹458 crores
- GSK China: Revenue ₹100 crores (+126%), EBITDA ₹20 crores (+337%), PAT ₹15 crores
- IMPCO Mexico: Revenue ₹216 crores (+22%), EBITDA ₹29 crores (+9%), PAT ₹18 crores (+63%)
- Symphony Brazil: Revenue ₹39 crores, PAT negative ₹3 crores
- Climate Technologies Australia: Revenue ₹172 crores (–7%), EBITDA negative ₹18 crores, PAT negative ₹28 crores
- Domestic vs. export (standalone): ₹1,065 crores domestic, ₹117 crores export (90%/10%)
- Exceptional items: ₹50 crores (consolidated), ₹91 crores (standalone pre-tax)
- Channel inventory: Slightly higher than last year; no quantitative figure disclosed
- Adjacent + LSV categories: Now high double-digit % of standalone sales; exact % not disclosed
- U.S. export opportunity: Significant inquiries received; no quantitative guidance
- BLDC coolers and tower fans launched; BLDC fans under evaluation
All figures as stated in the call. Where not disclosed, marked accordingly.