Symphony Ltd. Shares Dip 7% After Dismal Q2 Results, Profit Plummets 66%

Symphony Limited experienced a sharp decline in its stock value, dropping as much as 7% on Thursday, November 6, following the release of its financial results for the September quarter. The company reported a substantial year-on-year decrease across key financial metrics. Net profit for the quarter fell by 66%, from ₹56 crore in the prior year to ₹19 crore in the reported quarter. Revenue also saw a significant contraction, declining by 44% to ₹163 crore from ₹289 crore in the same period last year. Furthermore, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) experienced a 69% drop, falling to ₹24 crore compared to the previous year's figure. This decline also led to a compression of the EBITDA margin, which narrowed by over 10 percentage points to 15% from 26.6% year-on-year. The stock was trading down 7.1% at ₹876.5. This downturn in Symphony's stock also reflects broader pressure on consumer durable stocks. This sentiment was amplified after Blue Star Limited revised its full-year revenue growth guidance downwards, now anticipating a 15% decline in the Room AC industry for the fiscal year.

Impact: This news directly impacts Symphony Limited's stock price and investor sentiment. It also affects the consumer durables sector, particularly companies involved in air conditioning, due to the revised industry outlook. Investors will be cautious about other companies in this sector when they report their results. The impact rating is 5/10, as it highlights sector-specific headwinds and weakens investor confidence in consumer durables.

Difficult Terms: * **EBITDA**: Stands for Earnings Before Interest, Tax, Depreciation, and Amortisation. It is a measure of a company's operating performance before considering financing costs, taxes, and non-cash expenses like depreciation and amortisation. It gives a clearer picture of profitability from core operations. * **EBITDA Margin**: This is calculated by dividing EBITDA by total revenue and multiplying by 100. It shows how much profit a company makes for every rupee of revenue generated from its core operations, before interest, taxes, depreciation, and amortisation. A narrowing margin indicates reduced operational efficiency or increased costs relative to sales.