Highlights of the meet

The standalone net sales for March 2016 quarter grew by 10% to Rs 137.15 crore. The net profit has grown by 27% to Rs 46.52 crore.

The standalone net sales for nine months ended March 2016 grew by 18% to Rs 413.67 crore. The net profit has grown by 31% to Rs 123 crore.

The consolidated net sales for nine months ended March 2016 grew by 18.5% to Rs 444.36 crore. The net profit has grown by 41% to Rs 118.37 crore.

For the quarter, domestic revenue grew by 11% YoY, while exports rose by 10% YoY.

The company's growth was better than industry for Q3 and 9M.

42% OPM in Q3. OPM increased for the quarter on account of lower raw material prices, better operational efficiency and economies of scale. The mgmt hopeful of maintaining same level margin on short to medium basis.

Sales during the quarter were robust in South and East geographies with some territories posting triple digit growth. North and Central are expected to pick up in June quarter on account of strong heat wave.

19% consolidated and 15% standalone volume growth in 9M. Volume stood at 7.17 lac units on consolidated and 7.08 lac units on standalone basis for 9M.

65% growth seen in Modern Trade.

41% growth in town coverage.

70% value growth in centralized air cooler seen in 9M on small base. Contribution to sales from centralized air cooler is around 13-14%

Package air cooler market is growing well. No organized player is present in this market.

The mgmt said that for the quarter, its sales were not in line with expectation. It is hopeful of better June quarter.

Symphony launched two new models during the quarter which included ‘Cloud' – wall mounted air cooler similar to split AC and ‘iPure' – air cooler with inbuilt air purifier.

Subsidiaries contributed Rs 30 crore to sales for 9M.

In the international business, South East Asia is growing excellently well while the company is appointing new distributors in Russia and Uzbekistan.

The company has also secured orders for new models launched in Keruilai under centralized AC segment.

Impco is gradually moving to asset light model with 35-38% of real estate being already monetized and expects to be fully asset light in next 12-18 months period.

MKE's bulk of the business comes in June quarter and expects it to turnaround in medium term with Working capital requirement of Rs 35 crore while in FY17 requirement will be Rs 15-20 crore.

The domestic air cooler market including organized and unorganized is 7m units growing at 10-12% annually. Of the total market, 20% is organized which is growing at 15% annually.

Introduction of GST to expedite conversion of unorganized to organized market.

High end models contribution in terms of value is in excess of 30%.

The company's growth was better than industry for Q3 and 9M.

The company's volume market share has increased from 40% to 45% YoY and value market share has increase from 45% to 52% YoY.

China air cooler market size is around 10 mn unit.

The company has around 30 air cooler models.