SYMPHONY Announces Quarterly Results (3QFY21); Net Profit Down 47.1%

Mon, 25 Jan

SYMPHONY has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

SYMPHONY Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	2,900	1,910	2,160	13.1%	-25.5%
Other income	Rs m	100	80	90	12.5%	-10.0%
Turnover	Rs m	3,000	1,990	2,250	13.1%	-25.0%
Expenses	Rs m	2,220	1,640	1,830	11.6%	-17.6%
Gross profit	Rs m	680	200	330	65.0%	-51.5%
Depreciation	Rs m	30	50	60	20.0%	100.0%
Interest	Rs m	20	40	20	-50.0%	0.0%
Profit before tax	Rs m	730	190	340	78.9%	-53.4%
Tax	Rs m	220	40	70	75.0%	-68.2%
Profit after tax	Rs m	510	150	270	80.0%	-47.1%
Gross profit margin	%	23.4	10.5	15.3
Effective tax rate	%	30.1	21.1	20.6
Net profit margin	%	17.0	7.5	12.0

Year-on-Year Performance:

• The company's operating income during the quarter fell 25.5% on a year-on-year (YoY) basis. The expenses were down by 17.6% YoY during the same period.
• The company's operating profit declined by 51.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 15.3% in 3QFY21 as against 23.4% in 3QFY20.
• Depreciation charges increased by 100.0% and finance costs increased by 0.0% YoY, respectively.
• Other income declined by 10.0% YoY during the quarter.
• Net profit for the quarter declined by 47.1% YoY. Net profit margins during the quarter declined from 17.0% in 3QFY20 to 12.0% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 13.1% on a quarter-on-quarter (QoQ) basis. The expenses were up by 11.6% QoQ during the same period.
• The company's operating profit increased by 65.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 15.3% in 3QFY21 as against 10.5% in 2QFY20.
• Net profit for the quarter increased by 80.0% QoQ, while net profit margins increased from 7.5% in 2QFY20 to 12.0% in 3QFY21.

To see how SYMPHONY has performed over the last eight quarters,please visit here.

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SYMPHONY Share Price Performance

Over the last one year, SYMPHONY share price has moved down from Rs 1,276.3 to Rs 1,025.2, registering a Loss of Rs 251.1 or around 19.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 30,856.1 (down 0.4%). Over the last one year it has moved up from 26,352.7 to 30,856.1, a gain of 4,503 points (up 17.1%).

Overall, the S&P BSE SENSEX is up 18.3% over the year.

Current Valuations

At the current price of Rs 1,025.2, the price to earnings (P/E) ratio of SYMPHONY stands at 85.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 11.2 times.