Shares of Symphony fell to 1-week lows

Symphony Ltd., India's top maker of room coolers, fell to 1-week lows after the company reported a sharp fall in quarterly profit.

Symphony said its first quarter net profit plunged 31 percent to 22.3 crore rupees compared with 32.7 crore rupees in the same quarter a year ago. Sales during April-June slipped 13 percent to 133.4 crores versus 153.5 crores, the company said in a release to the exchanges. The company's EBIDTA margin fell to 22.2 percent versus 30 percent over the two comparative periods.

Symphony said it purchased a company in China, Munters, which will help it cut raw material costs due to cheaper sourcing from the country. Symphony's quarterly volumes slumped 20 percent this quarter.

Symphony fell 84 rupees, or 4.1 percent, to 1,765 rupees on the National Stock Exchange where 1.31 lakh shares changed hands compared with a 5-day average of 18,000 shares by 2:10 pm.

Symphony's market capitalisation has gained 61 percent in one year to 6,576 crore rupees. However, the stock has corrected from its peak of 3,219 rupees in late April due to over heated valuations. Symphony still trades at 21 times its book value of 88 rupees.

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