Symphony Q4 net flat to Rs 47 cr on a staggering 10-fold rise in ad costs

Advertising and sales promotion expenses went up to Rs 13.28 crore as against Rs 1.32 crore

Ahmedabad-based air cooler manufacturer Symphony Ltd posted a flat net profit for the fourth quarter of the financial year 2016-17 at Rs 46.69 crore, as against Rs 46.53 crore in the corresponding period previous year, as advertising and sales promotion expenses rose as much as 10-fold during the quarter to Rs 13.28 crore as against Rs 1.32 crore.
 
Nrupesh Shah, Executive Director of Symphony Ltd said, "We launched an animated TV Commercial themed around 'Garmi ko karo Symphony!' with our own animated icon during the season. Moreover, we invested Rs 13 crore in Q4 on brand spending which will yield huge long term benefits."
 
The company's net sales, however, grew by 33 per cent to Rs 184.05 crore during the quarter under review.

For the full year 2016-17, the company posted a 19 per cent year on year(y-o-y) rise in net profit to Rs 173.16 crore while its net sales grew by 27 per cent to Rs 665.29 crore.
 
On the consolidated front, the company posted a 29 per cent rise in net sales for 2016-17 to Rs 766.15 crore, while its net profit grew by 12 per cent to Rs 165.60 crore.
 
Shah said that IMPCO, Mexico has been successfully turned around and the Chinese subsidiary company GSK made substantial improvements and the loss on 2016 was substantially lower than the loss in the comparable period of 2015 (pre-acquisition).