Symphony surges over 10% on strong Q3 results

MUMBAI: Shares of Home appliance maker gained momentum on the back of better-than-expected third quarter results.

The company’s net profit surged to Rs 36.02 crore, up 45.30 per cent, from Rs 24.79 crore in the corresponding quarter last fiscal.

Net sales increased to Rs 151.41 crore, up 31.40 per cent, from Rs 115.22 crore in the same period last year.

The company has declared an interim dividend of Rs 4 or 200 per cent on shares of face value of Rs 2 each.

IIFL in its recent research note mentioned acquisition of Mexico based IMPCO in FY11 has given Symphony access to technological expertise in the industrial cooling (IC) segment.

The brokerage is positive on the company’s prospects in the coming years, given rising income levels, launch of new innovative products, strong brand recall, capturing market share from unorganized players and robust balance sheet.

“We expect Symphony to report revenue and earnings CAGR of 33 per cent and 35 per cent respectively during FY2014-17E. EBITDA is expected to clock a CAGR of 38% led by ~260 bps margin expansion from 23.7 per cent in FY14 to 26.3 per cent in FY17.

At 10:25 a.m.; the stock was at Rs 2,156.25, up 7.26 per cent, on the BSE. It rallied 10.7 per cent to touch intraday high of Rs 2225.