Symphony Limited (517385) Q2 24/25 earnings summary

Executive summary

• Achieved record-high revenue, EBITDA, and PAT for both standalone and consolidated results in the September 2024 quarter and H1 FY25, driven by strong brand presence, new product launches, and robust summer demand.

• Standalone Q2 FY25 revenue rose 32% YoY to INR 259 crore, with PAT up 36% to INR 67 crore, despite an additional INR 2 crore income tax provision due to budget amendments.

• H1 FY25 standalone revenue reached INR 632 crore, up 72% YoY, and PAT doubled to INR 136 crore, marking record highs.

• Consolidated Q2 revenue grew 15% YoY to INR 315 crore, with PAT up 61% to INR 56 crore; H1 consolidated revenue was INR 846 crore, up 47% YoY, and EBITDA surged 150% to INR 175 crore.

• Expanded product portfolio with 17 new air cooler models and entry into water heaters in India, focusing on select geographies and distribution channels.

Financial highlights

• Standalone EBITDA margin improved to 27.8% from 26.8% YoY, attributed to operating efficiency and economies of scale.

• Standalone H1 FY25: Gross Margin 51.5% (+180 bps YoY), EBITDA Margin 24.3% (+1830 bps), PAT Margin 21.5% (+1410 bps), RONW 31% (vs 21%).

• Consolidated H1 FY25: Gross Margin 50.5% (+1250 bps), EBITDA Margin 20.6% (+1840 bps), PAT Margin 17.0% (+1680 bps), ROCE 93% (vs 37%), RONW 33% (vs 15%).

• Subsidiaries' combined H1 turnover grew 12% YoY to INR 256 crore, with EBITDA at INR 23 crore versus INR 7 crore YoY.

• Standalone capital employed reduced to negative, sustaining growth and profitability with lower capital employed.

Outlook and guidance

• Management expects consistent double-digit CAGR growth in India, with three out of four international subsidiaries performing well; Australian subsidiary turnaround is anticipated.

• Product innovation, sustainability, and geographic diversification are expected to support medium- and long-term growth, especially as global temperatures rise.

• Outsourcing manufacturing to India and China, leveraging R&D, sales, and marketing synergies.