Symphony increases loan facility for Australian subsidiary to A$15 million

Air cooler and appliances maker Symphony Ltd on Monday (December 23) said it has entered into a second addendum to its loan agreement with Symphony AU Pty Ltd (SAPL), its wholly-owned subsidiary in Australia.

The addendum increases the loan facility from A$10 million to A$15 million. The additional funding will be provided in one or more tranches to meet SAPL’s working capital requirements and general corporate purposes.

Symphony holds a 100% stake in SAPL, making this a related-party transaction. The company has confirmed that the terms are at arm’s length and do not include provisions such as director appointments or restrictions on capital structure changes.

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For the second quarter, Symphony’s revenue increased by 14.5% from last year to ₹315 crore, while its net profit grew by 60% to ₹56 crore from ₹35 crore during the same period last year. Symphony’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 56% year-on-year to ₹64 crore, while margin expanded by over 500 basis points to 20.3% from 15% last year.

In an interaction with CNBC-TV18 on August 7, Nrupesh Shah of Symphony highlighted that the June quarter margin has been the best ever for the company. While Symphony’s numbers do appear lower on a sequential basis, the June quarter also needs to be considered in terms of peak summers in India, which also reflects on the numbers.

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Shares of SymphonyLtd ended at ₹1,288.00, down by ₹40.90, or 3.08% on the BSE.