Symphony Limited (517385) Q3 24/25 earnings summary

Executive summary

• Consolidated revenue for the nine months ended December 2024 rose 32% YoY to INR 1,088 crore, with standalone revenue up 49% YoY to INR 814 crore.

• Q3 performance was muted due to sales spillover, low-margin product mix, record unbilled advances, forex losses, and a significant provision for doubtful debt.

• Launched 17 new air cooler models and entered the water heater segment with AI-powered, differentiated products, incurring initial launch expenses.

• Net profit for the nine months was INR 134 crore (up 34% YoY), with EBITDA at INR 211 crore (up 88% YoY).

• Buyback of shares and interim dividends resulted in a total payout of INR 124 crore, 92% of consolidated profit.

Financial highlights

• Standalone EBITDA for nine months surged 91% YoY to INR 188 crore; PAT at INR 132 crore after exceptional items.

• Q3 standalone PAT was INR -4 crore, impacted by INR 46 crore provision for doubtful debt, water heater launch costs, and forex loss.

• Consolidated Q3 revenue was INR 242 crore (down 2% YoY); EBITDA INR 35 crore; PAT INR -10 crore.

• Gross margin for nine months at 50.5% (up 1260 bps YoY); Q3 EBITDA margin at 18.8% standalone, 14.7% consolidated.

• EPS for the nine months was INR 19.50.

Outlook and guidance

• Robust demand and positive sentiment expected for Q4 and summer 2025, with strong channel inventory and positive consumer sentiment due to tax relief.

• New models are margin accretive and expected to drive growth in Q4.

• Water heater business to focus on modern trade, e-commerce, and D2C channels initially, with broader rollout planned.

• Outsourced manufacturing shifting to India and China for cost and operational efficiencies.