Symphony falls 9% on disappointing Q2 results

The stock slipped 9% to Rs 871 on the BSE in intra-day trade after the company reported a 38% YoY decline in consolidated net profit at Rs 310 million in September quarter.

Shares of Symphony have slipped 9% to Rs 871 per share on the BSE in intra-day trade after the company reported 38% year-on-year (YoY) declined in consolidated net profit at Rs 310 million in September quarter (Q2FY19), on weak sales. The company engaged in air cooler business had a profit of Rs 500 million in the previous year quarter.

Net sales of the company grew 5% YoY at Rs 2.22 billion against Rs 2.11 billion in the corresponding quarter of previous fiscal. Ebitda (earnings before interest, tax, depreciation and amortization) margin declined to 20.5% in Q2FY19 from 33.4% in Q2FY18.

The company said it has maintained asset light, capital light, lower working capital (in September quarter) business model despite back to back two disappointing summers.

As of September 30, 2018, it holds non-convertible redeemable preference shares of Rs 210 million of Infrastructure Leasing & Financial Services (IL&FS), redeemable between March 2021 and October 2022.  In view of the recent significant downgrade of the credit ratings of IL&FS and intervention by the Government of India and various regulators in the matter, the company has provided Rs 41 million as an impairment loss for these investments and also stopped recognition of dividend w.e.f. April 1, 2018, it added.

At 02:48 PM; Symphony was trading 6% lower at Rs 900 on the BSE, as compared to 0.63% decline in the S&P BSE Sensex. A combined 163,720 equity shares changed hands on the counter on the BSE and NSE so far.