Symphony Ltd. saw its shares tumble 9% after the company reported weak Q3 earnings. The air-cooling solutions provider posted a significant decline in revenue and profitability on a year-on-year basis, impacting investor sentiment. As of 1:32 PM, the shares were trading 9.12% lower at Rs 1,298.15.
The company reported a net loss of ₹10 crore, a stark contrast to the net profit of ₹41 crore in the same quarter last year.
The primary reason for the loss was a ₹46 crore one-time provision for doubtful debts. This provision was related to receivables from M/s Pathways Retail Pvt. Ltd., a Delhi-based distributor, pushing the company into the red. Excluding this exceptional item, Symphony’s net profit still declined by 44%, dropping to ₹28 crore from ₹50 crore a year ago.
Revenue for the quarter stood at ₹242 crore, marking a 2% year-on-year decline. Symphony’s EBITDA fell significantly by 34% to ₹29 crore, while its EBITDA margin shrank by over 500 basis points, dropping to 12% from 17.8% in the previous year.
In the meantime, Symphony’s board announced a third interim dividend of ₹2 per share, offering some relief to shareholders.
Symphony Ltd.’s stock opened today at ₹1,428.50, reaching a high of ₹1,438.45 before dipping to ₹1,276.30. The stock’s 52-week range spans from ₹820.00 to ₹1,880.95.
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