Symphony concall
I have tried to replicate the same. Kindly bear with me if i have missed something important.
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Standalone (Y-o-Y)
Revenue - 321 crores up from 257 crs - 25% increase.
Domestic sales - 273 crores up from 210 cr - 30% increase.
out of 273 crores 269 crores are air coolers, rest 4 crores spare parts and other items.
Raw material consumption is - 42.63% vs 43.78%. No impact of rupee depreciation and volatility. No need to worry if rupee depreciated further!!!
Op profit increased - 27.70% - 27.79 %
EBITDA - 92 crs vs 70 crs
PAT - 63 crs vs 50 crs
PAT after providing tax 4.36 crores(year end mismatch since june being the year end for symphony) of earlier years.
It was above 67 crores if it is excluded.
Tax rate 28- 29% to be maintained.
Other income 13.5 crs vs 7.6 crs
There was high demand in Q4 for small coolers(residential) which was unmet. 40k coolers is the lostopportunity. To mitigate this kind of scenario,strategy to tie up with other OEM has been implemented. this will not happen in the coming years when there is adhoc or sudden demand. clever and excellent strategy!!!
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consolidated
cons sales - 391 crs up from 319crs - 22% growth.
cons - op - 23.5% vs 23.72.
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Details
Division to identify capital utilization.Home appliances and corp funds.
ROCE on stand alone basis - for home appliances - 111% vs 90%. Awesome!!!
ROCE on cons basis75% vs 63% . superb.
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dividend
6.5/- vs 5.5/-(3 normal and 2.5 special div for completing 25 years)
325% vs 275% - percentage basis. Super duper!!!
44% div payout. Great Going!!!
Inventroy
18 crs vs 11crs standalone . Will be cleared by september!!!
The new models received well. Service processing and repair improved.
total market - 5 million units - organized market - 1 million units.
org market - 25% growth. demand to continue.
market leadership - 50% in value terms.
distributors - 16400 dealers as on june 13.
Industry growing at 20%. Organized growing more.
Market share - videocon, kenstar - 30% each , bajaj electrical- 16% others - 4%.
Advt in 2013 was aggressive. will remain aggressive to capture markets.
modern retail growth - 68% over previous year.
impco - one time correction, reduction in exports.
price realisations - 5% improvement.
new countries added - eucador, bolivia, kazakhstan, armenia,croatia, angola.
symphony has identified a large distributor in pakistan. Supply from july.
focus is on large markets - exports and select markets.
Warehouse in Europe and branch in UAE.
Mexico operations
)- subdued performance. delayed season affected entire cooling industry.
)- service centre sales affected. margins were under pressure.
)- normal sales to resume this year.
identified strategy and steps to improve results.
)- lean manufacturing project identified. improved control on cost - manufacturing,
)- inventory management and rationalise inventory
)- Total 25 crs inventory.
)- debtors - 32 crores. no question of bad debts.
)- 90% of sales to large retail format. 90- 120 days payment schedule.
)- Advances from symphony - 31 cr down from 37 crs. Loans will come down to 23-27 crores.
)- 20 crs equity investment through subsidiary and 11 crs on loans.
)- substantial amount will recovered in the FY14 year.
)- plastic inventory reduced from 46k - 17k from 12 to 13(will be liquidated to zero in 2 months).
)- large customers sourcing begun
)- new models launched, may add new product line in mexico
)- metal cooler - maintains the position.
Industrial and ducted air cool
)- Sales increased on triple digit on small base.
)- focus to build a team, netwrk, awareness,
)- dealers improved from 15 to 44. Plan to reach 120 dealers this year.
)- no consultant to 10 large hvac consultants.
)- tie up with 2 large 2 national contractors - 20 contractors in future
-repeat order - baba ashram.
)- installation from 56 sites to 109 installations.
)- major new accounts include Asian paints, marico, iskon. railway - 2 railway stations.
)- good pipe line in IC and expect decent revenue.
Expect major revenue contribution in another 2- 5 years.