Symphony
This Ahmedabad based company mainly sells air coolers and it looks like things have really heated up during Q3 ended 31st March 2014 (30th June year ending) as the company seems to have ended the quarter on a high note. The company posted a net sales for the quarter at Rs.113 crore, up 33% (YoY). Total operating costs have risen 31% and there was a forex loss of Rs.74 lakh. It ended Q3 with a net profit at Rs.27 crore, up 50%.
Of the net sales of Rs.113 crore, Rs.91 crore comes from domestic sales and Rs.22 crore from exports. This quarter, it volumes rose 33% at 1,87,718 units sold but sales realization was down from Rs.6062/unit to Rs.5986/unit. Major fall in prices but it is higher volumes which helped shore up margins. The company, till end of 9M in current year has already posted a net profit of Rs.66 crore and this has surpassed 12M net profit of last year of Rs.63 crore. Clearly, the company will end its 2014 on a high note as Q4, seasonally is the best given the height of summer heat. The company is debt free, has a small equity of Rs.7 crore and reserves stands pretty healthy at Rs.181 crore. Its EPS for 9M stands at Rs.19 (Rs.2 face value), discounting the current price by 44 times and annualized EPS of Rs.25 discounts by 33 times. High investor fancy hence higher PE.