Symphony posts ₹27-crore profit in Q2

Air cooler maker Symphony Limited posted standalone net profit at ₹27 crore for the second quarter ended September 2020, as against a net profit of ₹1 crore in the first quarter. This shows the company’s profits have recovered by nearly half to the levels of corresponding quarter last year at ₹57 crore in September 2019.

Company’s standalone revenues from operations for the quarter stood at ₹112 crore, as against ₹40 crore in the previous quarter, which had a large part under Covid-19-led lockdown.

In its results note, the company informed that company’s sales were severely affected due to the pandemic since it hit during peak summer months in India and most other countries to which the company exports.

“Despite strong summer temperatures generating high demand for the company’s products and despite adequate availability of products with the channel, the lockdown prevented sales from taking place,” it added.

“Due to this unsold channel inventory which will only get liquidated in the next summer, purchases by the channel from the company in this quarter has been greatly affected and will remain muted for the rest of the year,” the statement said.

The management of the company informed that the average unsold inventory lying with the trade is approximately 40-45 per cent. “Overall the sentiment is low. But as we have witnessed in the past, once the summer sets in, it will change for positive. For new season, we have planned a series of initiatives (to increase sales) without impacting the margins. In the past also, when there used to be high trade inventory, we have successfully tackled it and we are confident to repeat the same,” said Achal Bakeri, CMD, Symphony Ltd in a results concall on Tuesday.

The management expects to recover full amount of the carrying value of receivables, inventories, assets and investments.

For the half year ended September 2020, Symphony’s standalone net profit stood at ₹28 crore as against ₹83 crore in the corresponding period last year. The six-month standalone revenues from operations stood at ₹152 crore as against ₹355 crore in same period last year.

On consolidated basis, its second quarter profits stood at ₹15 crore, which is a sharp recovery from ₹2 crore reported in the previous quarter in June 2020. But the profits were remarkably low when compared with the corresponding period last year at ₹58 crore for September 2019.

Consolidated revenues from operations for the quarter under review stood at ₹191 crore as against ₹154 crore in the June quarter. The consolidated revenues for the corresponding September quarter lasts year was ₹272 crore.

Symphony shares ended at ₹825, down 2.31 per cent from previous closing on BSE Tuesday.