Q4FY21 Result Update - Symphony Ltd - ICICI Direct

Symphony's Q4 performance witnessed a sharp business recovery on the domestic as well as international front. Consolidated revenues were up 36% YoY (~57% QoQ) to Rs. 339 crore led by 38% and 35% YoY growth in revenue of domestic and international business, respectively. Improvement in business sentiments and a sharp rise in export revenues helped drive standalone business. The export revenue of the domestic business almost doubled to Rs. 38 crore YoY in Q4FY21. On the international front, Climate Technologies (CT) reported a strong performance in Q4FY21 led by revenue growth of 84% YoY. The Australian subsidiary, CT, has outsourced ~Rs. 21 crore worth of air coolers from Symphony India for its major clients in the US as it has shifted its sourcing from China to India. The company believes further improvement in the performance of CT on ease of supply concerns. On the margin front, the consolidated Q4FY21 EBITDA margin increased 751 bps YoY (950 bps QoQ) to ~ 25% supported by turnaround of Australian business and higher operating leverage of domestic business. PAT came in at Rs. 63 crore, up 58% YoY, mainly tracking strong sales and EBITDA margin during Q4FY21.

Valuation & Outlook

While we continue to like Symphony for its market leadership position in air cooler industry & asset light working model, the extended lockdowns in peak season would delay future sales recovery of domestic business. We maintain our HOLD rating on the stock with a revised target price of Rs. 1345 (valuing 34x FY23E EPS, earlier TP Rs. 1090/share) while we continue to monitor the impact of lockdown on domestic demand growth.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Symphony_Q4FY21.pdf

Shares of Symphony Limited was last trading in BSE at Rs.1218.6 as compared to the previous close of Rs. 1294.8. The total number of shares traded during the day was 14777 in over 1963 trades.

The stock hit an intraday high of Rs. 1308 and intraday low of 1205. The net turnover during the day was Rs. 18375434.

Source : Equity Bulls

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