Symphony Limited (517385) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Symphony Limited Q4 FY '21 Conference Call hosted by Investec Capital Services Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Bhartia from Investec Capital Services Private Limited. Thank you, and over to you, sir.

Thank you, Malika. Good afternoon, everyone. I would like to welcome the management team of Symphony Limited to discuss the company's Q4 FY '21 results. We have with us the senior management of Symphony Limited, represented by Mr. Achal Bakeri, Chairman and Managing Director; Mr. Nrupesh Shah, Executive Director; and Mr. Bhadresh Mehta, Global CFO. I would now like to hand over the call to the management for their comments. Thank you, and over to you, sir.

Good afternoon, and thank you very much, everybody, for being here today with us. [indiscernible] Smart recoveries for the quarterly numbers in Jan to March quarter in terms of the top line growth. It's one of -- the quarter has recorded one of the highest sales in the industry quarterly [indiscernible] of the company. The stand-alone top line for Symphony India has seen a sharp increase. And so it's true for our subsidiaries in Australia, U.S.A and China. Mexico has most seen a recovery in this quarter. But overall, at the consolidated level, we have grown very robustly. However, the bottom line has not kept pace with the growth in the top line because of a very, very sharp increase in costs, especially in this quarter. The kind of increase in cost that we have witnessed in the last 3, 4 months, is unprecedented in the history of our company. And as you must have sort of seen with all these other companies and must be reading in the news, all commodities, whether it's plastic or metal or paper have gone up phenomenally. And so is our base costs and logistics costs, imports, everything has just sort of gone through the roof. So that has had a bigger impact on our bottom line. It did not -- was not able to keep pace with the top line. And in our nature, or any business, it's impossible to pass it on directly, immediately to your customers. And especially in our case, when we do a sizable amount of collection well before the summer and prices are sort of committed, we are unable to sort of pass it on immediately. So over time, we will be able to do that and bring margins to our historical levels. I'm not going to make it a lengthy preamble because my colleague, Nrupesh Shah, is going to sort of walk us through the numbers. But we will cover everything else during the con call later. With those words, thank you once again, and I request Nrupesh Shah to talk about the numbers.

Yes. Thank you, Achal Bhai, and thanks, investors and all the participants for valuable time. So year as a whole, on a stand-alone basis, Symphony India, top line stands at INR 488 crore versus INR 716 crore in '19/'20, that is the de-growth of about 32%. However, on a consol basis, the de-growth is about 18%, down from INR 1100 crore to INR 900 crore mainly because of our rest of the world business that includes export from Symphony India as well as business by overseas subsidiaries. Actually y-o-y registered a modest growth of about 4% and stood at INR 469 crore, while Symphony India domestic top line stands at INR 431 crore. So for the first time, rest of the world business has contributed more than 50% of the top line. And hence, help in reducing the growth on a consol basis. However, specifically coming to the quarterly numbers on a stand-alone basis, Symphony India registered about 38% growth in March 21 versus March '20. While on a consol basis, the top line stands at for the quarter, INR 339 crore versus to INR 249 crore, that is 36%. And this quarterly consolidated sales is the highest ever Symphony has registered in any of the quarter, while previous historical high quarterly console sale was INR 292 crore in June '19. So now we have surpassed that by almost 17%. So this has been possible on variety of reasons. Number one, some of the part breaking models, which Symphony launched in last 1 to 2 years. And in some of the models, when you make a generation gap between Symphony model and [ previous ]. Secondly, we had a major emphasis on semi-urban and rural market in terms of the dealer and distribution network, and that has also ended the result. And thirdly, we had also focused in terms of the e-commerce as well as direct-to-customer sales, which, of course, as of now, is small, but we have a major focus on that. While on a consol basis, especially Climate Technology has registered quite decent performance for the quarter. Year as a whole, Climate Technology INR has grown by about 21%. And during the quarter, Climate Technology -- for Climate Technology, it has been a turnaround quarter. In fact, on account of Climate Technology, Symphony India cooler sale and cooler's worth of about INR 21 crores in U.S. markets during the quarter. And down the line, there is great opportunity. Coming to a gross margin percentage on consol basis, during the year, gross margin stands at 45% versus 47% year before. However, during the quarter, the gross margin percentage on stand-alone basis is down from 56% to 48% due to reasons explained by Achal Bhai, and in addition to that, there has been also sharp increase in freight costs as well as during the year, the sales made to Climate Technology as well as U.S. Thereon, the combined gross margin percentage is significantly higher. However, it has been divided between Symphony India and Climate Technology. So on a stand-alone basis, there has been a reduction in gross profit margin percentage. But on a consol basis, it is, in fact, around 60 percentage. While on a consol basis, the point to be noted is, despite stand-alone decline but robust performance by Climate Technology as well as increasing gross profit margin percentage by IMPCO Mexico, Climate Technology and maintaining the GP margin percentage in GSK for the quarter, consolidated GP margin stands at 48%, in line with previous year. The EBITDA to gross revenue percentage on a consol basis has seen almost 400 bps increase, up from about 22% to 26%. As far as the profit after tax is on a stand-alone basis, the PAT has increased by about 10% against top line growth of 37%, that is at INR 49 crore. And apart from the results at a PAT level, it has been also partly impacted because we needed appropriate in the March quarter to spend substantial higher amount on sales, promotion and advertisement in expectation of good summer. So the additional cost was about 8 crore INR vis-à-vis previous year. However, on a consol basis, one, because of the turnaround of climate technology and also on account of decent performance by overseas subsidiaries, the consolidated PAT has seen a sharp jump of 60% and stands at INR 64 crore versus INR 40 crores in March '20. Again, the PAT is historically highest ever. And earlier highest ever saver profit after tax on a consol basis in any quarter was -- that was in September '19 of INR 58 crores. So vis-à-vis that, it's up by almost 11%. While coming to efficacy of funds deployed in the core business, that is air cooler business, on a stand-alone basis and very much remains as asset-light, capital-light business model and also partly so even on a consol basis. So year as a whole, the funds deployed in the core business, that is the capital employed is about INR 50 crores on a stand-alone basis for 2021. That includes investments in fixed assets, working capital, net of advances received. While on a consol basis, it stands at INR 282 crore, which includes, of course, fixed assets, working capital plus also acquisition cost. And that translates into, on a stand-alone basis, EBIT percentage or return on capital employed in core business, about 41% on a consolidated basis, while on a standalone basis, it is 237%. As far as the surplus treasury is concerned, as on 31st March '21, it's about INR 519 crore versus INR 433 crore a year before, that is up by almost INR 87 crore. And this is excluding equity investments and loans and advances given to subsidiary companies. As far as current quarter or year as a whole for Symphony India, we are certainly begin on a very, very positive note. Overall, there was a lot of BMC, very, very positive sentiments, and we had prepared for a very robust summer sales. And until about week before, we have registered excellent sales. However, since last 1 week, on account of COVID-19, now there is some uncertainty. However, current year, despite bigger COVID issue, there is no stringent lockdown in most part of the country and still entire months of May and June are there. So we are keeping the finger crossed and, for sure, if there is a reasonable revenue, which we are optimistic, then June quarter should be still a decent quarter. However, in any case, June '21 is going to be far, far better than June '20 quarter, which last year was a wash-out quarter. As far as Symphony Australia is concerned. So as it was shared in the past, we have taken series of initiatives, including the business model, including the value engineering, including cost rationalization, et cetera, et cetera. And as it was indicated in December quarterly performance, the March quarter has been a turnaround quarter and the journey is expected to continue. However, despite decent increase in top line for Climate Technology, Australia, the year was impacted, one, due to increase in raw material costs as they could not import known components from China, increased freight costs as many, many components were to be airlifted as well as increased labor costs. But it seems all these issues are now behind us in Australia. And unlike India, whether in Australia or U.S., the situation is much under control. And last year, despite COVID issue there, we registered the group and that probably is likely to continue. And in addition to that, good amount of Climate Technologies business is going to be outsourced from India starting current year itself. So that will help in terms of Symphony's overseas business, it's export and also improvement in profitability. Coming to IMPCO Mexico, the sales was impacted due to COVID 90. However, we succeeded in further improving the gross margin as well as contribution margin percentage due to various initiatives. But we had to provide for doubtful debt of about INR 7.2 crore during the year. And hence, that resulted into almost breakeven. Otherwise, even on declined sales, the absolute PAT would have been higher than previous year. And as far as U.S.A-China is concerned, again, sales was impacted due to COVID-19 as well as a variety of results. However, in March quarter, it has seen a trend mainly in the domestic market. However, exports from China have been severely impacted. And there also, we have succeeded in maintaining the gross margin and contribution margin percentage. And as I said earlier, overall, we are reasonably confident as well as optimistic for growth and performance in a medium to long term. The recovery was and maybe delayed, but certainly, it is not the derailed for sure. In medium to long term, we expect on a CAGR basis, very sustainable performance. And finally, we have announced a final dividend of INR 28 crore, translating to INR 4 per share. That is 200%, and including interim dividend, it amounts to about 33% payout. We have been slightly conservative because we have really appropriate to conserve the resources and also importantly, end-to-end dividend is relatively less tax efficient. So at our right time, we may like to go for subject to Board approval, share buyback also. Thank you. So we are open for question and answer. And of course, all our comments and response to question-and-answer are subject to customary disclosure statement.

[Operator Instructions] The first question is from the line... [Technical Difficulty] The first question is from the line of Daljit Singh Bhatia from HDFC Securities.

This is Indhar here from HDFC Securities. A couple of quick questions. One is given the COVID situation right now across the country, do you think what would be quarter 1 compared to, say, quarter 1 of FY '20? Is there kind of a ballpark guess as to how we'll end up there?

Yes. So as I said so far in about first 4 weeks, performance has been quite decent. We are also sitting on decent pending orders also. However, as I said earlier, for last 1 week some uncertainty has coming, but we expect that overall, the lockdown, almost across the country, barring a few regions is not as stringent as it was. And once this situation settles down, maybe in about 2 to 3 weeks or so. Still, we will have almost half of the quarter. And so we are keeping the finger crossed, but still it depends upon how the situation evolves. That's number one. And number two, irrespective of that, considering the sales what we have already achieved and orders in pipeline. And I think reasonably, we expect that in about 2 to 3 weeks situation may settle down reasonably. Then it may turn out to be still decent quarter. Only in line with blockbuster quarter as originally we were expecting. But certainly, this quarter is going to be far, far better than June '20 quarter, which was in a more shout quarter of '18.

Okay. Anything compared to June '19?

June '19, we expect it in 2 to 3 weeks situation, that is maybe settles down, it may be close to it.

Okay. Okay. My second question is, look, cooling has been a very, very unorganized market for many years in India. But in the last year or couple of years, you have seen a lot of organized consumer electrical companies starting to launch products here. So how do you see the competition shape up? Are you gaining market share from unorganized? And how are these companies kind of sharing? Any comments on the competitive landscape would be good. And that's it from my side.

Achal bhai, will you like to respond to that? Or should I take?

I could. But could you please repeat your question? We lost the audio in between for a brief while.

Okay. I'm just asking that it was traditionally a very -- an unorganized market, coolers. And now we have seen in the last couple of years, a lot of larger players starting to launch products in this category. How is this kind of moving the market are unorganized losing market share very significantly and going into the new players? So any comments on that would be helpful.

Okay. No, see, it still remains a market or a category dominated by the unorganized sector. That hasn't changed. The -- still, in our estimation, about 70% or so -- 70%, 75% of the total volume of the -- of air coolers sold would be from the unorganized market. So whether it is us or all our competitors put together would be catering to only barely a quarter or so of the total number of units sold. We have seen a lot of interest in this category in the last few years, and there has been a space of new players that have got into it. But that so far hasn't tremendously dramatically altered the ratio between organized and unorganized sector. So by and large, I would say that the newer players and existing players are sort of slicing the pie amongst themselves.

So in that case, how is our market share kind of moving?

Our market share as fairly -- has remained fairly steady. I would say that the newer players -- partly the market has expanded and the market of the newer players have taken market share from our -- mainly from our competitors.

Got it.

So value-wise, by and large, our market share has remained at about 50%, and newer players acquired at the market share from #1 #3 players. And secondly, overall, in the medium to long term, the trajectory of shift from unorganized to organize is likely about 8 to 10 years before. Unorganized was contributing 10% of -- 90% of the overall sales, which is down from 90% to 75% also. However, absolute volume because overall stake sizes increased their volume has increased. But organized sector growth is even faster than that. And that is a continuous process.

If I may just ask, what is the total organized market size right now? And what is the total market size?

So size-wise, our estimation is about INR 80 million. I'm sorry, INR 8 million.

That's volumes. Value wise?

Value-wise, again, basically is about...

About INR 4,000 crore.

INR 4,000 crore.

About INR 4,000 crore.

The next question is from the line of Abhishek Ghosh from DSP Mutual Fund.

So just a couple of questions. If you look at your domestic, the stand-alone revenues, which is almost about INR 212 million, which is one of the highest. If you can just help us understand 2 things. Is the element of goods being shipped to climate because then that is not -- which is largely getting reflected in the rest of the world. And also, there were some shipments, which was kind of stuck in 3Q FY '21? And was this largely related to city only, if you can just help us understand these 2 aspects.

So just pulling out the numbers. So the sales to our Australian and U.S. subsidiaries together, Climate Technologies, one way or the other is about INR 25 crores.

Okay. And what would be the subsequent number in the previous quarter, say, last year, same quarter?

No. It was negligible.

Negligible. So this INR 212 crore number higher by INR 25 crores because of the overseas business largely to look at it at?

Yes. Yes. You can say that.

Okay. So still you have left with about INR 180-odd crores of broadly INR 178 crores of domestic sale, which is also kind of one of the highest numbers as far as stand-alone is concerned, so is it more to do with the industry itself has done a very good number because of the pent-up in this new or you have gained market share because of the supply chain disruption and other things? How should one look at it?

No. From what we have gathered from our sources, that this has been basically at the expense of the competition. So this has been a market share expansion that we have seen in the last quarter.

Okay. And this, you believe, is kind of [indiscernible] who believe go away as things kind of normalize, any sense around it? Because you have also mentioned that you have increased your focus points as far as the non urban rural is concerned. So is it bearing fruits? How should one read it?

Your voice keeps on trailing off. But from what I gathered, you asked is that -- so I can say that it's a combination of factors. It's not coming due to any one single reason. So it's a combination of our push into rural markets and into unchartered territory. And also because of the kind of models that we have introduced in the last 1 year. And that, I would say that our channel partners have also been quite aggressive. And so it's a combination of various factors, including our ability to deliver, our ability to manage the supply chain. So it's a combination of various factors.

Okay. Okay. And sir, just one last thing. You also alluded to the point that the gross margin has suffered a little because of the sharp RM price increase. So in the 1Q FY '22, have you taken subsequent price hikes to kind of offset that? Has that been kind of taken in the marketplace?

No, no. See, because -- I mean, that is something which will happen gradually because we are in the middle of the season. So we haven't done all of that. It's all begun. We have partly done it, and it will happen partly in the months to come.

Okay. But over a medium term, you will again mean revert to that 50%, 52% of gross margin in the stand-alone business, that's the way to look at it?

Yes. Yes. You can say that.

The next question is from the line of Bhavin Vithlani from SBI Mutual Fund.

Just continuing on the previous participants. Could you help us with the price hikes you would have taken during the course of fiscal year '21?

I mean there are 2 things. One is I would not like to say that on an open line for competitive reasons. And secondly, it's not even very pertinent to the forum.

No worries, sir. The second question, again, is when we speak to your other listed peers, they tell us that the margins are in the band of 13%, 15% at EBITDA level, about 10 percentage points lower than your margins. If you could help us bridge what actually drives because you are -- it seems you are more cost efficient. So where are the cost efficiencies that you are deriving and what part could be the premium pricing like the Symphony brand carries?

So again, it's a combination of both. So our, I would say, manufacturing and our operations -- the way we manufacture is probably more efficient. But more importantly, the market actually pays a premium for Symphony. So it isn't as if we are pricing our products higher than the market. It is actually that the rest of the market is not -- doesn't price their product as the same as Symphony. They have to price themselves at a discount to Symphony. So that is why you see the delta between them and us. If we were to reduce our prices theoretically, academically, let's say, then they would be forced to reduce our prices -- their prices. So the delta is bound to remain. So it really is combination of both. Like I said, the premium that the consumers are willing to pay for Symphony, and which is what is sort of accepted and recognized by our worthy peers. But it's a -- and it is partly due to our manufacturing efficiencies.

And do you attribute to the premium pricing?

And in continuation of that question, so in addition to what Achal bhai said, there are also some pad breaking models in which, as such, model-wise future and performance-wise, there is no competition. And we are in a position to get a good pricing and profitability. And that's a continuous process. And secondly, in our case, we are a very cost-conscious company. And hence, even though in March '21 quarter, our gross profit margin is lower vis-a-vis previous year. The peers margin will be even worse than this inbound on a lower base. Because we know that some of the initiatives and value engineering, what we had done, it has restricted to this level. Otherwise, actually, reduction in gross profit margin percentage would have been even steeper.

[Operator Instructions] Next question is from the line of Manoj Gori from Equirus Securities.

Yes. Sir, my first question would be on the domestic market. So obviously, as investor also indicated that the momentum was pretty strong maybe around a week back. So given the case, obviously, there would have been a lot of primary purchase and -- so just wanted to understand what are the inventory levels in the channel part?

Manoj, your voice is not clear, Manoj. You probably keep the mouthpiece further away.

Is it better?

Yes. Better.

Yes. So I just wanted to understand on the inventory side, like what would be the inventory currently with the company as well as the B channel? And if you've been quantifying number of days because, obviously, given that there is a lot of uncertainty in the near term, so whether this might impact our Q2, Q3 performance or whether the extent would be limited to Q1 performance only?

So the inventory at this point, whether with the company or the channel is no higher than it normally is at this time of the year. And with -- I mean, but it's not for the last one week or so of pandemic related disturbances, it would have probably all been sort of cleaned out by now. So it is really nothing of any significantly high numbers. What remains to be seen is how long is this lockdown and this disturbance is going to last. We are hopeful that this is not going to last so long, and we have the whole month of May and June ahead of us. And so whether it is the current inventory or what we are even now as we speak producing and intend to keep on producing, we don't see a problem in being able to liquidate that inventory.

All right. Right. And sir, secondly, on the subsidiary businesses, obviously, air climate would be one of the major climate, which is one of the major improvements in the overall operations. So if you look at the one-off or like the orders that you talked about on INR 25 crores to U.S. market, so what's the nature of that order, whether it would be -- it was one-off order or whether it would continue in the coming quarters? And how things are looking for climate, as you already highlighted, like things are relatively better. So can you give some more comfort or color on future outlook on Climate Technologies?

So first of all, that order is from Home Depot, which is one of the world's largest retailers of its kind, $120-odd billion company. And this is an existing and very old customer of Climate Technologies. So what used to earlier go from China has now been -- the manufacturing has been transferred to India. And -- which is why we saw that business. So this is not a one-off thing. This is -- the customer has been with Climate Technologies for God knows how many years, 10, 20 years. So it's an ongoing business. It's an additional business that we have also been able to do because of new models that we have added the Symphony portfolio of models that we have begun to sell in the U.S. So this is an ongoing customer and will remain an ongoing customer. So this is not a one-off thing. As far as Climate Technologies is concerned within Australia, we have seen a good top line growth, but then we have not seen a corresponding growth in the bottom line. Again, for the same reasons, sharp increase in commodity prices because of unavailability of components, look -- unavailability of being able to import components from China, we had to buy local components at Australian prices. So that has also taken a toll on the bottom line. So basically, logistic costs and high raw material costs have had an impact on the cost of goods sold. But the good news is the top line is there. And if there is no top line, there can never be a bottom line. So at least if you have the top line, then you can, at some point, be able to manage the bottom line. So at least, I think that is what we have to sort of recognize. And so with that, I think once things normalize, hopefully this year, then the bottom line should also be significantly better in line with the top line.

And Manoj, for information, the total U.S. business, including exports from India and what Climate Technology has generated, put together during the year has been [ USD 13 million ], close to INR 95 crores. So that itself is a sharp jump from previous year. And that's what we were looking for. And we expect actually down the line even major potential.

Right. So that was the reason. So lastly, if you can give the like the subsidiary numbers, even as the year ends. And -- so for the FY '21 as a whole, like what would be the numbers at revenue, EBITDA impact and profit [indiscernible].

Manoj, your voice is muffled again.

Sorry, can you give the -- can you provide the subsidiary in the performances for FY '21 for all the 3 subsidiaries, like revenue, EBITDA impact?

Yes. We have already shared in data ship not only the performance but critical analysis, not only for the year 2021 but for each of the subsidiary and Central India as well as consolidated even for March '21 quarter vis-à-vis corresponding quarter.

[Operator Instructions] The next question is from the line of Renu Baid from IIFL.

Yes. So my first question would be to understand on the commercial and cooling side of the business, how has the year gone by? And now that we are seeing upticks in terms of domestic investments and CapEx, how are we looking at this business shaping up?

So in the year that has gone by, of course, it wasn't all that good for obvious reasons. But in the last few weeks, we have seen certain -- I mean, a sharp increase in business, in the industrial and commercial cooler space. And we expect that in the current year, '21, '22, there should be a significant growth in that vertical.

But would we be now be in a position to share some numbers in terms of how this business scaled up or any medium-term targets over the next 3 to 5 years for this business?

We -- as of -- as we speak, of course, for the last year, there is no point in sharing those numbers. Those are really nothing significant. But going forward, once we believe that they are meaningful, we will be more than happy to share them ourselves. And there are, obviously, there internally, there are targets, and there are plans, business plans and all of that. But again, they may not be something which we would be very happy to share in a larger forum.

But at least would you be able to share some inputs in terms of how has been the update with regards to the dealer/distributor network, getting registrations and qualifications to consultants in this business, any quantifiable numbers or details that we can share here?

For industrial and commercial segment?

Yes.

Again, that is not something that we will be very happy to sort of divulge. And whatever we can share, we are sharing in our data sheets and in our -- whatever else, all of that we are sharing. Beyond that, I'm too happy doing that.

Okay. Secondly would be, as in now...

Renu, in that respect, just to refresh, we have launched a molecule range of air coolers under centralized inducted air cooler. And for that, we have created a separate range of dealer distribution network. And that range, having a couple of models is receiving quite overwhelming response. And as we had shared earlier, since last 1.5 years or so, centralized inducted air cooler are completely being outsourced from India instead of earlier practice of import from China and Mexico. And that is leading to a couple of advantages. One, in terms of the custom duty savings, logistics and even smaller order and lead time, et cetera.

Got it. And second, for the core business. Now that over the last 1 year, bulk of -- we have seen customers moving towards online e-com platform. How do those channels stack up for us in terms of revenue mix for us? And how has been the inventory levels and the overall performance of regional retail and the modern retail format for us?

So Nrupesh, you want to answer?

So the regional retail and modern retail was significantly impacted last year and the onset of lockdown. So what...

Yes. Sure. So Renu, in March quarter, as such, a large-format store has registered significant growth over March '20 quarter. In fact, surpassing the sales of year '19, '20, in March '21 quarter itself. And if we segregate e-commerce out of that, e-commerce has registered in March quarter, more than 100% sales growth.

In terms of the revenue mix, sir, do we have some numbers to give some perspective?

We -- again, not something we'd be very happy to divulge.

Okay. And now if you look at the core domestic revenue, so of the INR 212 crores of revenue, INR 38 crore was approximately export from the stand-alone. And the remaining INR 174 crores were -- was the broad number for domestic market. So if you look at this number from 2 perspective, a, throughout last year, we did not see much of off-season sale happening because of channel inventory. And second, throughout most of the other electrical categories, we have seen significant loss of market share from small and regional players. You had mentioned that bulk of the revenue growth that we have seen or the incremental growth seen in the 4Q was due to market share gains. So in your view, I wanted to understand, has the channel stocking improved back to normalized levels? Had these external environment been broadly steadied? So as in other channel partners now broadly either their inventory levels and they are off base models? And second, cooler as a category itself, there is significantly higher level of unorganized players. So to that extent, the quantum of market share gains for Symphony, which has 50% market share, do you think that has already been up to the mark where slightly fallen short of expectations? Or maybe those somewhat might reflect in the June quarter.

We don't believe so. The confidence in the trade has been pretty good, and which is why that has been reflected in the March quarter numbers. And so really speaking, there has been no remarkable change from the previous years.

Okay. Sure. And the impact of significant market share gains should be seen in air cooler as a category as well the way it's seen in most other segments throughout last year for you?

Yes. Very much, very much. Now again, it all depends on -- I mean, market share, yes, in terms of overall, what happens with the market remains to be seen with the current situation. But we are quite hopeful. Like I said, we have the whole month of May and June ahead of us.

Got it. And one last question, if I can. There's been quite a few new launches being done, including certain specifically e-com driven SKUs being launched by Symphony. So can you share some inputs in terms of the new product launches as in now in terms of the broad mix expected in terms of sales for this year? And what are you planning on this side?

Right. So apart from the models that we had launched in the beginning of the -- I mean end of last summer or beginning of this current business cycle in July, August, we have recently launched a unique model, which is so far exclusively on Flipkart, and later on, it will also be available on Amazon. The model's called Duet. It's again a pathbreaking model. It's a tabletop cooler. It's a range of 2 models. One is the tabletop one, and the other is what we call a pedestal cooler. And if one were to sort of won flipkart and look at Duet, D-U-E-T, one will see how distinct the product is. And this is, as a position, not only -- not really as a cooler but more as a cooling fan for a variety of reasons, as suggested by Flipkart and Amazon. So that is one of the newest innovations from the Symphony's table. And so the product innovations from Symphony just is a way of life. And this is just one more, and there are more products to come and more innovations that the market will see in the months to come. And this has been just very recently. And whoever has sort of used the product has given us rave reviews. And so that's one thing which we -- last year, we launched very, very large coolers, the largest coolers that India has ever seen. And this is the smallest -- or among the smallest coolers that India has ever seen. So with this product, we have sort of covered both ends, extreme ends of the spectrum, the very smallest to the very largest, and both are extremely, I would say, different and innovative.

And this new product launch has been positioned as a fad and price-wise also quite competitive and still decent the margin. It has a potential to sell around the year at a customer level also.

The next question is from the line of Hitesh Taunk from ICICI Securities.

Thank you for the opportunity, sir. Sir my question. I have 2 questions. One is, sir, if you can give them some total dealer number in FY '21 vis-à-vis FY '20? And this is the first question. The second question, sir, how many launches we did in FY '21 vis-à-vis FY '20? And sir, third question, if I may, after I missed that market share part of your comments here. Like since we have seen a significant market share by organized player in the -- during these lockdowns and the short-term from the unorganized side. So if you can throw some light in terms of understanding how or by when we may see a kind of market share gain by around 200 or 300 or 400 bps points from now, sir.

So first of all, such a precise number of 200, 400 basis points in market share. It would be very difficult to communicate because this is a market in which there are very -- there is very little information available. We are the only listed player, which is exclusively in the air cooler space. Some of our other major competitors are either not listed or are listed, but they do not share air cooler numbers individually. So what we -- the market share numbers that we have been talking about are what we gather from market sources. So it will be impossible to sort of say, okay, 50% will become 51% or 52%. So even the total size of the market is more of an estimation than anything else. India as a country is something where numbers are not very sort of readily available. So it will be difficult to sort of be very precise.

If I may ask sir, if suppose we want to know, is there any severe damage to their business during this lockdown period? Have you got any kind of sense as of now?

Everybody has been affected to varying degrees. So -- but beyond that, really, we have no specific information.

Sir, what about dealer network vis-à-vis '20, sir, in FY '21?

So the dealer network is -- expansion of our dealer network is an ongoing sort of an issue at Symphony. And we have expanded. And as we speak also, we are expanding in the current quarter also. It will get -- it will be expanded. But again, we wouldn't like to talk about specific numbers.

Okay. And about launches, sir? I mean, in terms of absolute numbers.

Okay. In the year 2021, how many launches did we do?

I think all in all, we had launched under various today, 30-plus new models in last 2 years. That is under residential range as well as Movicool that is centralized in the air cooler.

The next question is from the line of Nirav from Anand Rathi.

My question pertains mainly towards the long-term debt that we have of around INR 140 crores. So sir, considering that the scenario for our overseas subsidiaries are improving, so can we expect that in maybe next 2 to 3 years, this long-term debt will also be repaid? Or any color you can share on the debt repayment trajectory? Because we are critically told that this debt has been taken for acquisitions and will be repaid from the cash flows which are being generated from these acquisitions.

No. Very true. Very true. So as such, repayment of the debt starts post June '22, but there is a good possibility that there may be either prepayment or for Climate Technology, we may like to reduce or repay the working capital facility. And certainly, the acquisition loan is going to be sold from the cash accrual of Climate Technology. So -- but we don't expect entire acquisition loan to be repaid in 2, 3 years. It will take slightly a longer time.

Just to add to this. So Basically the purpose of taking the acquisition loan was to take the tax advantage of the interest being the tax deductible expenditure, right?

Yes. And also, we have availed this loan in Australian dollar so that because Australian dollar fluctuates quite heavily. Say, as on 31st March '20 versus '21, Australian dollar has depreciated almost by 16%, 17%. So repayment obligation is also in Australian dollars. So in a way, there is a ForEx arbitrage. And thirdly, the loan is now priced at about 3.60%. Otherwise, from our space, where we sell air cooler very, very [indiscernible] but there is still a decent arbitrage between the treasury income versus cost on this borrowing.

Thank you. I would now like to hand the conference over to the management for closing comments.

Well, just like to thank everybody for their participation. And we are hoping that all of you and all of us stay safe. And looking forward to interacting with all of you at the next quarterly conference, where we hope that the pandemic is a thing of the past and we are able to celebrate with very, very healthy numbers. Thank you.

Thank you. On behalf of Investec Capital Services Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.