Symphony PAT surges by 48% On Yearly Basis For Quarter Ending December 2013

Symphony, which has the distinction of being world’s largest manufacturer of residential, commercial and industrial air coolers, came out with its second quarter result of FY14 (company follows July-June fiscal year). Company has posted a robust sales growth of 31% on yearly basis and 60% on sequential basis and stood at Rs 115.22 crore for Q2FY14. The company that earns almost one tenth of its total sales from exports saw it growing by 281% on yearly basis and increased from Rs 2.7 crore at the end of Q3FY13 to Rs 10.28 crore for Q2FY14. Domestic sales, which constitutes 90% of total revenue has increased by 24% on yearly basis to Rs 104.9 crore for Q2FY14. 

Symphony posted EBIDTA of Rs 35 crore for quarter ended December 2013, an increase of 32% on yearly basis. The EBITDA margins remained unchanged at 30.4%.

Better sales growth and lower tax expenses were the reasons that the percentage of sales led to 48% growth in the Profit After Tax (PAT) of the company for quarter through October-December.  Symphony posted a net profit of Rs 24.79 crore for Q2FY14. The board of directors has announced an interim dividend of Rs 2 per equity share and record date is February 7, 2014. 

The net earnings per share of the company for the last twelve trailing month comes down to Rs 23.73, which discounts current share price of Rs 456 by 19.38 times. Following this spectacular result, shares of the company have risen by 11%.  We believe long term investors can enter the stock on every dip.