Q2 2025 Symphony Ltd Earnings Call Transcript
Key Points
- Symphony Ltd (BOM:517385) announced a second interim dividend of rupees 2 per share, resulting in a total shareholder payout of 77% of the console profit for the first six months.
- The company has maintained a strong focus on capital efficiency, with a negative capital employed of 171 crore as of September 2024, indicating effective capital management despite challenges.
- Symphony's overseas subsidiaries, particularly in Mexico and China, have shown strong performance, with Mexico's top line up by 14% and China's turnover more than doubling.
- The company is actively working on product innovation, introducing new models such as the 'Silent Zoo' air cooler, which is expected to capture market share with its unique features.
- Symphony Ltd (BOM:517385) is strategically diversifying its product portfolio and geographical presence, which positions it well to capitalize on climate change trends and global market opportunities.
- The company is facing challenges with delayed payments from a major distributor, leading to legal actions and impacting domestic receivables.
- Despite a strong summer in 2024, Symphony's growth over the past five years has been modest, with a CAGR of only 6%, largely due to dependency on summer temperatures.
- The Australian subsidiary continues to struggle, with external factors such as the economic impact of COVID-19 affecting sales, particularly in the builder segment.
- There is increased competitive intensity in the air cooler market, with numerous semi-organized sector companies entering the space.
- Symphony's business remains heavily dependent on summer sales, making it vulnerable to seasonal fluctuations and temperature variations.
We were having long standing relationship of more than 10 years since 2013 and so far until summer of 23 there was impeccable payment track record. However, considering the delay, we have already initiated the legal action and we will go all out for the recovery, but we need to report this.
And today board of directors have announced second interim dividend of rupees 2 per share. And with this total shareholder payout for first six months will be 110 crore versus console paid of 144 crore. That is 77% of the console profit is payout.
So as symphony is known in terms of the capital efficacy and our focus despite the growth and performance has been always how we can be wise enough in terms of the capital employment. So in terms of the total fixed assets on a stand alone basis, it stands at 76 crore while in terms of the current assets, it is 198 crore which includes the receivable of 73 crore.
Unfortunately, this would have been even better. However, as you can see the difference between domestic receivables mainly it is on account
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