- 21 Oct 2022
- ICICIdirect Research
Symphony posts mixed bag Q2 numbers
SYMPHONY - 1562 Change: 47.05 (3.11 %)News:
In Q2FY23, Symphony's consolidated revenue increased by 24.5 % YoY to Rs 274 crore, led by 41% growth in domestic business. The EBITDA margin declined by 422 bps YoY to 13.5% as a result of higher marketing expenditure and increase in freight & warranty expenses. Company’s consolidated PAT grew by 6.7% YoY to Rs 32 crore led by higher topline growth.
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We believe that the increase in revenue for Symphony was fueled by the positive trade sentiment in the domestic market. However, due to a shift in the product mix, gross margin slightly decreased by 56 bps YoY to 45%. The rise in marketing costs, freight costs, and added warranty costs contributed largely to the decline in EBITDA margin. The marketing expenses, which account for 2.2% of the total revenue, climbed by 350% YoY to Rs9 crore. Despite an off-season, Symphony posted a 32.8% YoY growth in PAT led by strong topline growth.
Impact:
Neutral.