Symphony Limited’s share price dropped over 10% on February 5, 2025, following a reported ₹10 crore net loss for Q3FY25 due to a one-time expense and provision for doubtful debts.
On February 5, 2025, Symphony Limited, an Indian consumer durables manufacturer known for its air coolers and other cooling products, saw its share price slump by over 10%. This significant drop followed the company’s announcement of a ₹10 crore net loss for the third quarter of FY25, compared to a net profit of ₹41 crore for the same period in FY24. The loss was largely attributed to a one-time expense of ₹46 crore and a provision for doubtful debts amounting to ₹45.99 crore.
Symphony, based in Ahmedabad, Gujarat, revealed that the net loss was primarily due to exceptional items, with the most notable being the ₹46 crore one-time loss. Additionally, the company recognized the provision for doubtful debts, particularly related to receivables from M/s Pathways Retail Pvt Ltd, an e-commerce distributor in Delhi. As of December 31, 2024, Symphony accounted for the full outstanding amount owed by this distributor as a doubtful debt, further impacting the company’s financial performance.
For the quarter ending December 31, 2024, Symphony’s revenue saw a 2% decline year-on-year, totaling ₹242 crore. Despite this, the company declared its third interim dividend of ₹2 per share, with the record date set for February 11, 2025.
Stock Market Performance
Symphony’s stock opened at an intraday high of ₹1,453.95 on the Bombay Stock Exchange (BSE) but quickly dropped to a low of ₹1,278.65. Research Analyst Prashanth Tapse from Mehta Equities stated that the stock fell nearly 9%, touching a support level at ₹1,300. He added that there is strong support at ₹1,250, with further downside potential towards ₹1,200. On the upside, the stock faces resistance around ₹1,350–1,400, where a short covering rally could potentially push the stock higher.
Symphony’s poor financial performance in Q3FY25, combined with the significant drop in its stock price, highlights the challenges the company faces. The market will be closely watching how Symphony addresses its financial issues in the upcoming quarters.
