Symphony Ltd Management Discussions

Global Economic Review

Overview

Global economic growth remained steady at 3.2% in 2024, followed by a projected increase to 3.3% in both 2025 and 2026, according to the IMFs January 2025 update. This performance includes a noticeable slowdown in global manufacturing—especially in Europe and parts of Asia—driven largely by supply-chain disruptions and weaker external demand, while the services sector showed resilience and helped sustain growth. Meanwhile, inflation moderated in most regions. Growth in advanced economies was estimated at 1.7% in 2024 (projected at 1.9% in 2025 and 1.8% in 2026). Emerging and developing economies are likely to report a growth decline from 4.4% in 2023 to 4.2% in 2024 (projected

Indian Economic Review

Overview

The Indian economy was projected to grow at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. This was a four-year low due to sluggish manufacturing and investments. at 4.2% growth in 2025 and 4.3% in 2026).

Global inflation was expected to decline from 6.8% in 2023 to 5.9% in 2024 (projected at 4.2% and 3.5% in 2025 and 2026 respectively). This decline is attributed to the declining impact of previous economic shocks, and labour supply improvements. Monetary policies anchored inflation, preventing wage-price spirals.

Global unemployment remained steady at ~ 5% in 2024, and it is projected to hold at around 5% in 2025 before edging down to 4.9% in 2026, according to latest ILO projections.

At the end of calendar year 2024, Donald Trump was elected as the President of the United States,

Indias nominal GDP (at current prices) is estimated to attain a level of H331 trillion in FY 2024-25 (H301 trillion in FY 2023-24). The Indian rupee weakened 2.1% against the US dollar in FY 2024-25, closing at H85.45 on the last trading day of FY 2024-25. In March 2025, the rupee recorded the highest making his return to power. The new US administration has introduced import tariffs on goods from multiple exporting countries, heightening uncertainty surrounding global trade and markets. This development could weigh on the broader economic outlook through 2025.

Outlook

The global economy is anticipated to remain resilient with 3.3% growth in 2025 and 2026. This stability is likely to be influenced by disinflation, declining commodity prices, and easing monetary restrictions. However, conflicts, geopolitical tensions, trade restrictions and climate risks could emerge as challenges. (Source: IMF Report – World Economic Outlook January 2025)

monthly appreciation (over 2%) in the currency since November 2018.

Inflationary pressures eased, with CPI inflation averaging 4.8% in FY 2024-25, driven by moderating food inflation and stable global commodity prices.

Growth of the Indian economy

	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
Real GDP growth (%)	9.7%	7.6%	9.2%	6.5%
(Source: Press Note, Feb 2025 MoSPI)
Growth of the Indian economy quarter by quarter, FY 2024-25
	Q1	Q2	Q3	Q4
Real GDP growth (%)	6.5%	5.6%	6.2%	7.4%

(Source: National Statistics Office)

Indias direct tax collections have grown by 16.15% year-on-year, reaching H25.86 lacs Crores in FY 2024-25. Overall growth in total gross GST collections rose at a slower pace of 9.4% Y-o-Y, compared to 11.7% in FY 2023-24. On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 2024-25. The industrial sector was expected to grow 6.2%, supported by growth in construction activities, electricity, gas, water supply, and other utility services.

Manufacturing activity is expected to have remained subdued in FY 2024-25, with growth projected at 4.3%, lower than 12.3% in FY 2023-24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed down to 3.8% in FY 2024-25, compared to 8.1% in FY 2023-24. Indias manufacturing sector is set to reach USD 1 trillion by FY 2025-26, with Gujarat, Maharashtra, and Tamil Nadu leading the charge. This growth is fueled by significant investments in the automobile, electronics, and textile industries. Government initiatives such as Make in India and Production Linked Incentive (PLI) schemes are key drivers, attracting foreign direct investment (FDI) and enhancing industrial infrastructure. (source: IBEF).

Outlook

India is expected to remain the fastest-growing major economy in FY 2025-26, driven by a robust services sector, accelerated manufacturing activity due to government initiatives like improved logistics infrastructure and tax reforms, and significant investments in infrastructure projects. Key growth catalysts include advancements in technology, increased digitalisation, rising consumer demand, foreign direct investment, and agricultural modernisation. These factors, combined with a stable macroeconomic environment, will help sustain Indias growth momentum

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs)

Overview of the Indian air-coolers market

The Indian air-cooler market, demonstrating significant growth potential, was valued at approximately H50 billion in 2024. Industry analysis indicates a robust growth trajectory, with the market size anticipated to double within the next five to seven years. This substantial expansion is being driven by a compelling interplay of factors viz. the increasing frequency and intensity of heatwaves, rising disposal income, rapid urbanisation, growing middle-class households, expanding distribution network, and technological advancements and innovations.

The Indian air-cooler market is experiencing robust growth fueled by rising energy consumption concerns and the eco-friendly nature of these appliances. Indias hot, extended summers, where temperatures frequently reach 45?C, drive substantial demand across residential and commercial spaces. Air-coolers offer a cost-effective and energy-efficient alternative, with significantly lower operational costs and electricity consumption.

Government initiatives improving rural electrification are further expanding market reach. In a nation where a large percentage of over 300 million households rely on air cooling solutions, the energy-efficient and environmentally sound nature of air-coolers positions them as a rapidly growing segment within consumer durables. Their ability to provide good air quality without harmful refrigerants, coupled with up to 90% lower electricity consumption than air conditioners, enhances their appeal.

Growth drivers

Rising temperatures: 2024 was the warmest year on record since 1850, with temperatures averaging 1.29?C (2.32?F) above the 20^th century average of 13.9?C (57.0?F). This is 0.10?C (0.18?F) higher than the previous record set in 2023. The ten warmest years in the 175-year record all occurred in the last decade (2015–2024). The global surface temperature in January 2025 was 1.33?C (2.39?F) above the 20^th century average and also above the previous record set in January 2024, making January the warmest on record. According to NCEIs Global Annual Temperature Outlook, there is a 7% chance that 2025 will rank as the warmest year on record. (Source: Assessing the Global Climate in 2024 – National Centers for Environmental Information).

Economy growth: Indias GDP growth of 6.5% in FY 2024–25 was underpinned by macroeconomic stability and the effective implementation of strategic policy measures. The country is steadily progressing towards surpassing other major global economies, marked by healthy FDI inflows, a growing export sector, and significant advancements in infrastructure and financial regulation. This economic growth is expected to boost consumer spending power, further driving demand for indoor comfort solutions like air-coolers. (Source: PIB)

Millennials: Individuals aged 15–64 years account for more than 68% of Indias population, with a median age of 28.4 years. This is significantly younger compared to 38.3 years in the United States and 39.6 years in China. Indias large youth population represents a dynamic source of innovation, fresh perspectives and long-term solutions. (Sources: United Nations, Data Portal (Population Division)) Urbanisation: India is undergoing rapid urbanisation, with an increasing proportion of its population migrating to cities. By 2030, it is projected that around 40% of the population will reside in urban areas, creating significant challenges for infrastructure and city management due to the influx of people from rural regions seeking better opportunities. This trend is expected to drive growth in the air-coolers market across the country.

Non-metro markets: In recent decades, non-metropolitan cities have seen rapid consumption growth, positioning them as emerging economic hubs with strong prospects.

Digital inclusion: Increasing internet penetration and smartphone adoption empower consumers with information access and facilitate online purchases through the exponential rise of e-Commerce platforms offering competitive pricing and convenient delivery across geographies. The growing familiarity with digital transactions and the convenience offered by emerging quick commerce trends further contribute to the accessibility and adoption of air-coolers, supported by targeted digital marketing.

Rural advancement: According to the Ministry of Statistics and Programme Implementation, ~65% of Indias population resides in semi-urban and rural areas, where the demand for affordable and efficient cooling solutions is rapidly increasing. Moreover, in the 2024 federal budget, the Indian government planned to increase state subsidies for rural housing by up to 50%, potentially exceeding USD 6.5 billion. This boost in rural housing development is expected to drive air-cooler market growth. (Source: Ken Research) Labour force: Indias working-age population (15–64 years) constitutes 68% of the total population, significantly contributing to the growth of the air-coolers market.

Technological innovations: Consumers increasingly prefer modern features such as smart locks, touch-sensitive digital panels, remote controls, auto swings, and alarms over outdated products from the unorganised segment.

Limited adoption: Indias consumer durables market remains less saturated compared to other nations, offering substantial growth opportunities.

Electronic appliances, once considered luxuries, are now evolving into essential household commodities.

Modern retail: Organised retailers are expanding into Tier II, III, and IV cities, increasing their market presence and accessibility.

Financial overview

The Companys consolidated revenue from operations stood at H1,576 Crores in FY 2024-25, compared to H1,156 Crores in FY 2023-24. The consolidated EBITDA (excluding other income, exceptional items and forex loss incl. MTM) of the Company stood at H316 Crores in FY 2024-25, compared to H173 Crores in the previous year. The Company reported a consolidated PAT of

H213 Crores in FY 2024–25, after considering a post-tax exceptional item impact of approximately H38 Crores, compared to H148 Crores in FY 2023–24.

Key ratios

Please refer to Note no. 46 of the Standalone Financial Statements.

Information technology

The Companys IT function has been pivotal in supporting the organisations strategic goals through our digital transformation journey. The Company has implemented a best-in-class IT system that enhances process automation and efficiency. Our IT team is prepared and responsive to innovation, ensuring smart and scalable processes.

Understanding the customer journey is paramount. The Company has implemented distributor and dealer portals with enrollment and order management functionalities, streamlining the customer experience by providing real-time order tracking and updates. Additionally, our digital extended warranty program has further enhanced customer satisfaction. The Companys dark store management has significantly improved efficiency and customer satisfaction. These distribution centres cater to online orders, ensuring quicker delivery times. Achieving the ISO 27001 certification demonstrates our commitment to protecting sensitive data and managing risks effectively.

Recognising employees as the first line of defence against cyber-attacks, the Company has enhanced its cybersecurity measures and provided online training to increase user awareness.

Human resource management

The Company is a remarkable symphony of innovative products, efficient processes, and, most importantly, exceptional individuals. Our foremost priority is to create and sustain a culture of high trust and high performance, where every team member can grow holistically. In our pursuit of maintaining such a culture, we have consistently participated in Great Place to Work surveys and have been recognised as a Great Place to Work for the past three years. As on March 31, 2025, the Companys headcount of permanent employees stood at 486.

This culture is nurtured through personalised attention to each talented team member, impactful HR initiatives, and candid communication. Our HR initiatives, including the AARAMBH Induction Program, Mentorship Program, and HR Connects, ensure a seamless transition for new hires and assist current team members in embracing our company culture. Initiatives like the 360-Degree Leadership Enhancement program proactively improve leadership effectiveness, propelling the Company to new heights. Our outcome-focused learning and development function ensures that our team remains aligned with external market trends while preparing for future skill demands. At Symphony, we firmly believe that if we prioritise the well-being of our team, they will, in turn, take care of the business. The

Symphonites Wellness Program is dedicated to supporting the physical, mental, and emotional well-being of our team members. These initiatives, among many others at Symphony, provide comprehensive growth and development opportunities for our entire team.

Internal control systems and their adequacy

The Company maintains a robust system of internal controls to safeguard assets, ensure authorised and accurate transactions, and uphold reliable financial records. These controls are supported by documented procedures, regular audits, and periodic management reviews. Information and Technology General Controls (ITGC) are monitored to enhance IT security and infrastructure.

The compliance function ensures adherence to legal and regulatory requirements, providing timely feedback for corrective actions. The audit committee of the board also reviews the performance of the audit and compliance functions and reviews the effectiveness of controls and compliance with regulatory guidelines. The board of directors and senior management affirm the efficiency and reliability of the Companys internal control systems.

Cautionary statement

The Management Discussion and Analysis Report, which outlines the Companys objectives, projections, estimates, and expectations, may include forward-looking statements as defined by applicable laws and regulations.

These statements could differ significantly from actual outcomes. Key factors that could impact the Companys operations include the availability and prices of raw materials, cyclical demand, pricing in principal markets, changes in governmental regulations and tax regimes, fluctuations in forex markets, and economic developments in India and other countries where the Company operates, along with other incidental factors.