Symphony posts mixed Q4FY22 resultsSYMPHONY - 1095 Change: 14.20 (1.31 %)
News: Consolidated sales were up by ~13% YoY to Rs 384 crore led by 18% sales growth in the domestic business to Rs 251 crore. The consolidated EBITDA margin came in lower by 342 bps YoY to 21.4% due to higher raw material and advertisement costs. The lower EBITDA margin restricted the PAT growth at ~2% YoY to Rs 64 crore.
Views: We believe, Symphony’s Q4FY22 performance was a mixed bag with higher sales but lower EBITDA margin, resulting in a flattish PAT growth. However, management has guided strong revenue growth in FY23 (~40% over pre-covid level sales) supported by a normalised operation in the domestic market (after sales loss of two consecutive summers) and increased export demand. The management has also guided EBITDA margin expansion going forward with improved operating leverage. We believe, higher sales and improvement in EBITDA margin will drive the profitability going forward.