- 21 Oct 2022
- ICICIdirect Research
Symphony posts mixed bag Q2 numbersSYMPHONY - 1111 Change: -9.20 (-0.82 %)
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.
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.