Symphony Ltd (NSE: SYMPHONY) Q4 2025 Earnings Call dated May. 08, 2025
Corporate Participants:
Nrupesh Shah — Managing Director
Amit Kumar — Chief Executive Officer
Analysts:
Joshi — Analyst
Palash Gandhi — Analyst
Unidentified Participant
Anirud Joshi — Analyst
Deshkande — Analyst
Sanjay Javla — Analyst
Rahul Gajari — Analyst
Rohit Maheshwari — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of Limited, hosted by ICICI Securities Limited. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Joshi from ICICI Securities Limited. Thank you, and over to you, sir.
Joshi — Analyst
Yeah. Thanks, Pejal. On behalf of ICICI Securities, we welcome you all to Q4 Symphony. We have with us senior management represented by Mr, Managing Director; Mr Nrukesh, Managing for Corporate Affairs; and Mr Amit, Group CEO and Dire. Now I hand over the management for initial comments and the presentation then we will follow question-and-answer session. Thanks, and over to you, sir.
Nrupesh Shah — Managing Director
Anirud, are we audible?
Joshi — Analyst
Yes, sir, you are.
Nrupesh Shah — Managing Director
Yeah. In fact, his voice was breaking. It was not clear to us if you wish to sat right is it okay, sir? Still it is breaking
Amit Kumar — Chief Executive Officer
All right. Good morning good afternoon, everybody, and welcome to Symphony’s annual results earning Call. We have a presentation as always, which my colleague Nupesh Shah will take us through the customary Safe-Harbor statement applies and over to you,.
Nrupesh Shah — Managing Director
Thank you and welcome to FY ’25 and March quarter conference call. So we have a presentation, giving the performance highlights. So at a consolidated level, we have surpassed the revenue milestone of INR1,500 crores, which was our aspiration since year. And at a consolidated level, we have registered the top-line of INR1,576 crore, that is 36% growth Y-o-Y. Similarly, March quarter revenue is the highest-ever. It is 47% consolidated growth versus March ’24 and happy to also share highest-ever annual as well as March quarter, consolidated EBITDA as well as PAT.
Coming to standalone performance, for the first time, we have surpassed the milestone top-line of INR1,000 crore that is INR1,182 crore, showing top-line growth of 49 percentage, which is on account of our years of initiatives of better penetration in semi-urban and rural markets, robust sales-through alternate channels and also adjacent category and LSV also contributed decently well. Coming to March specific, the top-line growth is 47% and again, happy to report highest-ever annual and quarterly EBITDA and PBT not PAT on account of exceptional items. There has been decent expansion in EBITDA margin by more than 500 bps at a console level and more than 400 bps at a standalone level.
There has been also Y-o-Y gross margin expansion on account of, as guided earlier, launch of 17 new models as well as value engineering and substantially streamline the supply-chain in addition to operating leverage and economies of scale. We — the Board has recommended final dividend of INR8, a face value of INR2, that is 400%. In all, this amounts to total payout during FY ’25 INR178 crores, which is 84 percentage of the consolidated profit vis-a-vis our stated guidance of 60 percentage payout. Coming to company-specific guidance in the respect of subsidiaries.
So to start with, the companies which we are going to retain, that is GSK China have registered strong financials on account of robust growth in domestic as well as international market, it has repaid loan of INR13.5 crore out of its profitability and internal accruals and hence, current outstanding, including interest accrual is about INR49 crore as updated earlier Inco Mexico is going to buy technology transfer as well as nine IPRs and GSK China is selling to ImCo which were specifically developed for IMCO, Mexico and in new scenario, it has been found worthwhile to sale to InCo Mexico. T
He transection value is in INR about INR43 crore and considering GSK strong financials and cash-flow position, it won’t need this amount and hence net of expenses close to INR40 crore, which GSA will receive from InCo will be utilized towards repayment of loan to Symphony. And in addition to that, we expect that from profitability and cash accruals of GSK China in FY ’26 by end of FY ’26 or around that, the loans to Symphony should be completely paid-off and GSK China in-line with Symphony India as well as Mexico should be self-sufficient and debt-free.
About Symphony Brazil, which is more like a trading subsidiary to take the advantage of fourth largest aircular market in the world, the top-line growth, of course, on a small base is up from INR26 to INR39 crore and we see a huge potential. Coming to InCo Mexico and Climate Technology, two companies which are on block. InCo Mexico is registering consistent strong financial growth driven by broader product offering, wider distribution network and Inco Mexico will pay to GSK China towards IPR by completely out of its profitability and internal accruals, which otherwise would have directly accrued to Symphony India. However, these transactions accuse multifold objectives in terms of it will get a better value as it will own those IPRs and technology know-how.
Secondly, GSK China is monetizing these assets and will earn a profit on that. And thirdly, in a very tax-efficient way, funds will flow to Symphony India. Coming to climate Technology Australia, we don’t have any good news to share in terms of the performance except at least last 11 quarters, de-growth has been reversed to an extent. So the de-growth begins starting June ’22 quarter, at least that has been reversed the slight positive momentum is driven by-product expansion which has been recently introduced, broader geographical and distribution reach as well as cost optimization
. However, on account of several initiatives which we have taken as well as product availability, supply-chain availability, as well as now it’s going to much bigger market. We expect any prospective buyer will see what they are going to get down the line and its prospects so before taking you through specific financials, we’d like to explain you about the exceptional items during the year as well as the quarter so first and foremost as until March ’23 GSK China was not doing well and hence there was equity impairment of INR1.55 crores as suggested by auditors, it was taken in March 20 quarter. In addition to that, out of total loan auditors are recommended to impair loan worth of INR7.73 crores in FY ’24. However, as explained earlier, due to strong financials and visibility and potential of GSK China. Now auditors themselves have recommended and we have accepted it the write-back of INR9.28 crore. Of course, it’s some non-cash transaction, it’s an accounting transaction , it’s below-the-line transaction. But just to draw your attention. On the other hand, our total equity investment as well as loan given to climate technology is substantial, out of which small part auditors have recommended as per Indias as well as accounting standard amounting to about INR50 crore to take as an impairment this is on equity investment by Syphony India in Symphony AU. So that has been recorded in the current year as well as in current quarter. Again, as explained for GSK China, this is non-cash outflow, accounting adjustment, no way it is impacting ongoing transformation process of climate technology, future roadmap and in our expectation its realizable value. Giving further update on pathway on which during the year, we have taken total write-off of close to INR50 crores and out of which very small amount of INR49 lakhs has been recovered so-far. However, we have succeeded in substantial legal progress to ensure we can optimize our recovery potential. So we have secured power of attorneys as well as equitable mortgage in symphony’s favor in all for 13 immovable properties, including valuable land parcel, residential and office complexes in Delhi as well as NCR region and they are owned not only by pathway but also in the individual capacity of promoters and associates. In the interest of time, I’m not taking you through other legal measures which we have taken as we have already updated earlier and available in the investor presentation of 18th announcement of 5th February as well as 29th of October but we are on-top of it and trying our level base so this is the summary of exceptional items amount wise first at a console level so at a console level total exceptional item is at a pre-tax level about INR50 crores that is write-off on pathway and post-tax it’s about INR38 crores. At console level, in March ’25 quarter, there is zero impact. In nutshell, in all at a console level, exceptional item is INR50 crore. Coming to standalone, so there are variety of items as explained earlier, write-back of GSK China, impairment of equity investments in Symphony Australia, pathway write-off, all put together at a pre-tax level, INR91 crore and at a post-tax level INR71 crores. And during the quarter on account of JSK China and Climate Technology technology the net effect is INR41 crore at a pre-tax level and 34 crore at a post-tax level so results will be viewed in light of this. So coming to consolidated financials for FY ’25, so as mentioned earlier, top-line is INR1,576 crores. The EBITDA is INR316 crore, up from INR173 crores. So EBITDA is up by 83 percentage versus top-line growth of 36 percentage. And PAT after taking exceptional item of INR50 crore stands at INR213 crore versus INR148 crore that is growth of 44 percentage. Coming to capital allocation at a console level, total capital employed in the business based on monthly capital deployed is INR248 crores versus previous year in excess of INR300 crores. So capital deployed is lower despite increase in top-line and bottom-line. Translating into ROCE in core business 101% and return on-net worth percentage is up from 18 percentage to 28 percentage at a console level. We have thought it appropriate to also share with you actual consolidated and as two companies are on block, if we exclude their performance, what could have been pro-forma consolidated for FY ’25? So revenue from operations in pro-forma would have been INR1,290 instead of INR1,576. EBITDA would have been 305 instead of 360. PAT would have been higher by INR9 crore, that is instead of INR213 crore, INR22 crores and capital deployed would have been down from INR248 crore to INR33 crores. So in nutshell, even though turnover will be marginally lower, however, profitability as well as capital allocation will be far, far superior. In addition to, as guided earlier, management bandwidth and focus will be fully deployed to more profitable growth growth-oriented domestic opportunities as well as exports and international business from Symphony India, which in new geopolitical environment are quite potential so this is waterfall chart for EBITDA margin which was 14.94 percentage for FY ’24 now stands at 20.05 percentage. Coming to console quarterly financials, top-line is INR488 crore, up by 47%, EBITDA up by 77% at INR103 crore from INR59 crores and PAT stands at INR79 crore, up from INR48 crore, 63 percentage. At a PAT level, the percentage improvement is 165 bps and at an EBITDA level, the percentage improvement is 358. Again, we wish to emphasize and as we will go down the line, even for standalone, as we have guided repeatedly and it is available in transcript, at least for last three years, our complete focus is how to improve the EBITDA margin percentage because even if there is a decent improvement in gross margin, but if we can’t control the items in-between, that higher or lower gross margin are yield. And hence, as you can witness, witness there has been consistent focus and it is also yielding in terms of the actual performance. This is waterfall chart or console EDA which is up from 17.64 percentage to 21.22 percentage yeah next please coming to Symphony India standalone performance revenue is INR1,82 crore up from INR796 crores, that is growth of 49 percentage . Gross profit margin percentage stands at 49.75 percentage, up by 73 bps and absolute amount wise it is up by 51 percentage at INR588 crores. EBITDA is up by 78 percentage from INR161 to INR287 crores and on standalone, EBITDA margin stands at 24.25 percentage, that is more than 400 bps improvement and PAT stands at INR176 crore crores versus INR653 crore after taking into account and providing for exceptional items amounting to INR91 crore, notionally, had those — had those exceptional items wouldn’t have been INR50 crore is a cash exceptional item and INR50 crore is a non-cash exceptional item, the PAT would have been INR247 247 crores just for a record quarter so about capital employed based on monthly average capital employed on a standalone basis, it is negative INR32 crore versus INR44 crores. So academically it translates into infinite ROCE, which we believe some of the investors see it with a high-growth, but we are fine with that and RO&W percentage stands at 23 percentage vis-a-vis 18 percentage and our treasury stands at INR458 crores versus INR395 crores. This is in addition to our equity investments and loans given to subsidiaries amounting into INR258 crores which we believe part of that or as and when two companies are monetized it should be also recovered. Coming to standalone EBITDA margin percentage, it is up from 20.21 percentage to 24.25 percentage with the breakup as it is displayed coming to standalone quarterly performance. So some of you may recollect that when December quarter was muted, we had guided that we are fitting on decent amount of advances, especially for new models as their production was to begin starting for some models in January and some models in February. So on account of that, but also on account of decent performance and collections during March quarter across the product, including new models across the trade channel, including semi-urban and rural market, The turnover is INR368 crore, up from INR251 crores, that is 47 percentage gross margin stands at 49 percentage, up by 34 bps and EBITDA is INR99 crores versus INR63 crore, that is 56 percentage up vis-a-vis top-line growth of 47 percentage and margin-wise, it is above 27 percentage showing improvement of 159 bps and PBT excluding exceptional item is INR109 crore versus INR669 but actual PAT is INR44 crore, down from INR46 crores on account of exceptional item of INR41 crores provided during the quarter, that is impairment of Climate Technology and GSK China net of impaired that non-cash impairment being not there for excluded notionally PAT would have been INR78 crores that is up by 43 percentage again just for record purpose so standalone EBITDA margin waterfall chart up from 25.29 percentage to 26.88 percentage with the breakup as been displayed here so now taking you to the subsidiary wise performance. As we have five subsidiaries, I have to take you through and bother through many more financials, but please bear with us because there was also expectation and consistent requests from many analysts that we must share subsidiary-wise detailed data also. So for GSK China, the revenue from operations for FY ’25 is INR100 crore, up by 126 percentage and while EBITDA is INR20 crore, up by 327 percentage and PAT is INR15 crore. So phenomenal growth, of course on a low-base. And coming to March quarter, the top-line growth is up from INR13 crore to INR20 — sorry, INR12 crore to INR25 crore, EBITDA stands at INR6 crores. Is Brazil which is a trading subsidiary and Brazil performance needs to be viewed. Brazil standalone has been displayed here and also the EBITDA and PAT, which we retain in India because it is merely export facilitation company. So importantly, its turnover for the year is INR39 crore and PAT is negative INR3 crore on account of ForEx loss of INR3.3 crore as well as extra shipping cost of INR2 crore. However, if we consider Symphony India, we are quite optimistic about Brazil operation. We are continuously expanding our product offering as well as expanding the dealered and distribution network. Ultimately it is the fourth largest aircular market. So about InCo Mexico, top-line growth during the year is 22 percentage, stands at INR216 crore. EBITDA touched INR29 crore, up by 9 percentage and PAT is INR18 crore, up by 63 percentage. And even for the quarter, it has registered a decent performance. Coming to climate technology, top-line is INR172 crores down by 7 percentage. EBIT are negative INR18 crore. However, if at all the solar which is slightly reduced Y-o-Y as well as PAT is negative INR28 crore on account of interest and non-cash items like depreciation, etc. And for March ’25 quarter, there has been marginal improvement in the top-line by 12 percentage to INR49 crores. However, at EBITDA and PAT level, it is clearing as the number show coming to outlook again as per our IR policy we are not giving or sharing any forward-looking numbers, whether for the quarter or for the year, whether in terms of the top-line, profitability margin or profitability. So our outlook will be more like qualitative factors. So summer of ’25 commence with quite encouraging momentum. So in South India and Central India, summer in violent time and we witnessed robust demand in The initial phase. However, post 31st March, as all summer related industries are witnessing and we are no exception, we are facing mild and erratic weather. However, due to several initiatives which of course vis-a-vis is previous year so-far it is submuted performance, it is muted performance so-far. However, we have to keep in mind we are working in such an industry wherein just consistent heat of seven to 10 days is enough to sale of everything in that market and especially in northern, Western, Central and Eastern India depending upon the territory still 7 to 11 weeks have to go and repeatedly in the past we have witnessed that it can move-in any direction so again on account of several measures which we have taken over years, now we have quite decent penetration apart from general trade through several other trade channels in semi-urban as well as the rural market and still we see a huge potential to expand modern trade across the sub-channels with the large-format stores, visual large-format stores, also D2C, also institution sales etc. Each of them are generating decent sales performance and there has been strategic focus to scale emerging markets, accelerating digital expansion and deepening partnership with the modern trade so we have to also report that as we have introduced adjacent category in last two years, adjacent category which consists of tower fan kitchen cooling fans feeling groundwayer, water heater which is counter seasonal and in addition to that, large space ventilated air, centralized, all these three categories together have also contributed decent amount of sales during the years and they are highly potential in all respect. And as earlier and explained our vision from exiting two companies, sharpen focus and more management on growing opportunities as well as we are exiting from those two companies, not necessary from those two territories depending how situation evolves and in current situation, we see a huge prospect in USA because there we compete only with Chinese players and in current tariff environment, already we have started receiving huge inquiries which are request to supply in the shortest possible time. Of course that is not going to be feasible, but doors have open. Thank you.
Questions and Answers:
Operator
So we are open for question-answer. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Palash Gandhi from Investec. Please go-ahead.
Palash Gandhi
Hello. Yeah, please go-ahead. Hello. Hi, good afternoon, sir. This is Aditya from. Hi, hi, sir. So you mentioned that there was an anticipation of a strong summer and constantly, we did have very, very strong Q4 and things are not really playing out as per those anticipations in the month of April. Does that mean that inventory at the channel level at this stage would be significantly higher than what we usually have, let’s say, at the beginning of May.
Nrupesh Shah
I would request Amit to answer.
Amit Kumar
So I just say that this — the point regarding the season panning out right now is pertinent. The inventory that is there in the channel at this moment is slightly higher than what we had at the same time in the last year. That said, this is still too early in the day for the season to pan-out and most of the country still is we still have three weeks of May and the entire June available first. So like mentioned, we are making all efforts across the channels to address the sales.
Palash Gandhi
Sure, sir. And would it be possible to share anything on how April has panned out in terms of sales?.
Nrupesh Shah
So I’m afraid, as I say at this stage, it wouldn’t be right to share the numbers. The — all we can again repeat is the weather has been erratic. It has not been in-line with our expectations, but I’ll not be able to share numbers right now. But what we can share probably our approved performance or until now in the current quarter would have been the best-in the industry vis-a-vis peers. That is number-one. And number two, last year was exceptional summer, but if we exclude June quarter, quarter vis-a-vis earlier summer vis-a-vis earlier June quarter, it has been a decent performance.
Palash Gandhi
Okay. Understood, sir. Sir, my second and large question is, if you could share how exactly our LSE portfolio and the lower range of air coolers, Bharat range that we had launched, how exactly those are shaping up, those initiatives are shaping up, how large those businesses would have become and how we kind of thinking about those businesses going-forward? Thank you.
Nrupesh Shah
Thank you. So good point, Adity. Starting with the LSE portfolio, it’s still building up. It’s a category creation work that we are doing in a in an organized B2B kind of environment. So it’s growing in double-digits. Again, I’m not at the right now to share the values, but it’s going well into solid double-digits a year-on-year basis. Coming to the Bharash that you mentioned, that is a portfolio we had created to penetrate the deep rural markets in particular. So from the perspective of the business that is focused on the rural segment, I would add that we are growing again in high good double-digits for that sector. The Bharat range itself has been expanded to add a couple of product ranges to cover a larger spectrum of the rural segment. So overall rural segment is on strong high-double-digit growth rate.
Palash Gandhi
Understood, sir. That’s very helpful. Thank you.
Operator
Thank you. The next question is from the line of from Smith Limited. Please go-ahead.
Unidentified Participant
Hello, am I audible?
Operator
Yes, ma’am.
Unidentified Participant
Thank you so much for the opportunity and congratulations on the good set of numbers. So my question is majorly on the channel dynamic. So has there been a notable shift in the channel dynamics like is the e-commerce share growing? And also are there any strategic partnerships or channel expansions like e-commerce or institutional buyers and how do we plan to increase the market penetration? Sir,
Nrupesh Shah
The overall, I would say it’s — it’s still a bit early in the day-to comment on the channel — the channel dynamics for this year versus the last year. The dynamics also vary by the regions and barring south the region — the season is still to play-out in most parts of the country. At this point in time, I wouldn’t say there is any marked shift in the channel mix at the industry level across the country. Specifically about selected specific
Amit Kumar
Channels, as we mentioned in the presentation, rural and semiurban is one segment that we are focusing on. And in addition, the adjacent segments of the tower fans and the new category of water heaters is something that we are expanding our presence into. So those are part of the additional incremental focus.
Unidentified Participant
So okay, sir. Thank you so much for the plan. Sir, would it be possible to give the percentage contribution for the LSE and the adjacent categories in terms of sales? So previously it was contributing approximately 10%. So is the contribution still maintained or can we see an increase?
Nrupesh Shah
Yes. So earlier that percentage we had given on a consol basis. Currently, in the interest of competition, we do have the numbers, but what I can broadly say, adjacent category, LSV put together on a standalone basis itself, which was earlier in so in a small-single digit percentage is now a decent double-digit percentage and at the console level it would be even much higher.
Unidentified Participant
Okay, sir. Thank you so much for your plan that’s it from my side.
Operator
Thank you. Ladies and gentlemen, you may press star and 1 to ask a question. A reminder to all the participants that you may press star and one to ask a question. Thank you. The next question is from the line of Anirud Joshi from ICICI Securities. Please go-ahead.
Anirud Joshi
Yeah. Sir,, just want to understand about the market. Obviously, the weather conditions have been erratic, but if you can indicate how does the market breakup remains, means, let’s say which is a major market in, let’s say, March, South India is a major market or is North India at all not affected whatever happens in March per se, or let’s say, North India is only important from a May and June perspective. So that is question number-one. If you can share impact of weather on different regions in India and on the business of Symphony also as well as the industry as well? That is question number-one.
And then question number two, we had introduced some of the completely differentiated products such as a single-user kind of air-condition — air cooler then we had also introduced a fan also, which can be used in kitchen or also. So any updates on these differentiated new launches, which we had done?
Nrupesh Shah
Yeah. Thanks. So let me take-up the first question first. As you rightly highlighted, the March — month of March and early-April are more sort of prominent for the southern parts of the country and the remaining parts, north, east, even most of the West, the months of May and June are where majority of the Hind consumer sales happen.
So that is how it has been and hence the weather pattern in March and April, they matter more to the sales in the southern parts of the country. Most of the remaining regions, as I said earlier, they still have to see the peak of the season as we go-forward. Coming to the specific products, we spent, let’s say, the kitchen cooling fan that we’ve launched. So that’s the segment that we are building.
And that segment along with the tower fan segment, they are again growing well. They are growing in strong double-digits for us and they are also helping us expand into new count — kind of channels and counters across the country, the kind of stores that we were not able to get into earlier. Similarly, I think when you said that the single person cooler probably you were talking about the buddy or, which are really desktop kind of models. Again, those models were developed most for the global market. But again, we are seeing good traction and these numbers are small. We introduced the products actively in the market in the last season only and numbers have fall, but in terms of growth percentages, they are seeing high-growth.
Anirud Joshi
Okay. Sure, sir. That’s helpful. Yeah. Thank you.
Nrupesh Shah
Thank you.
Operator
Thank you. The next question is from the line of Deshkande from Alpha Peak Investments. Please go-ahead.
Deshkande
Hello. Hello. Yes, sir. Am I audible okay. Sir, congratulations for the very good set of number and the diversification which we are doing into non-seasonal businesses is really good because the seasonal variations like to some extent can be awarded. So that diversification is good one. The initial response also as per your information seems to be quite good. So that is a good one. Now regarding the subsidiaries of sale, et-cetera, you had taken a conference call also last-time and you had mentioned that process will continue for some time and you are expected to realize quite a decent amount by the by selling those companies or investments in those companies. Now I think we have taken the impairment of INR50 crores in this quarter. So can you give us a rough idea of how much can be realized from the sale of those subsidiaries?
Nrupesh Shah
So first and foremost, on 12th of April, we’ve decided and finalized to put Mexico in climate Technology on block. So it’s less than a month since we have decided. We have appointed the investment banker with a specific milestone. So process has just begun. So it’s very difficult to specify when it will be completed and how much value will be realized even though as you know very well in climate technology we have transformed the company and down the line any potential buyer should see $6 billion to $8 billion of market opportunity with our supply-chain completely set local team, brand and product availability.
So even though our performance so-far post-acquisition is not up to the mark, it is delayed. But based on that, we expect optimum value for it. As far as Inco Mexico is concerned, our equity investment is less than INR3 crores. As outlined earlier, apart from sale monetization value, 43 crore will move to GSK and in-turn to us before sale transaction so that itself is going to be realized. In addition to that, as it is doing very well and it’s very ripe in terms of the timing and in terms of its scale and size to have the optimum valuation. So first put together, we need to see how much we realize, but difficult to point out. So that is related to investment banking transaction.
Obviously, we will attempt and try to get the best-value, needless to say. As far as the second part of the question was impairment. Impairment and investment banking transaction, both are quite different points. Impairment is done based on auditor’s view considering the recent performance and next year what they estimate based on our recent performance.
So it is auditor’s recommendation and as a good governing company, we could have very well avoided that and would have been fine with just observation of auditor, but we decided to go as per the recommendation. It’s completely non-cash item and that is the clarification. Now let me give you two hypothetical example. These two companies put together one on a higher side, assuming we realize INR100 rupees and our investment is INR60 rupees. That will be profit of INR40 crore on-sale of, INR100 crore. Yes. And in addition to that, whatever impairment we have taken that will be added at that stage. However, if 60 is realized at 40, then there will be a loss of 20, but that loss of 20 will be adjusted and will be lower to an extent of impairment. This is purely hypothetical, mathematical example I’m sharing with you.
Deshkande
Yes. It is good that you mentioned this clearly. So basically, what I was trying to mention is that impairment which we have already taken this time, which is good as a prudent accounting practice and you have gone by the observations of the auditors. So this impairment, now whatever we recover from the proceeds of this, the impairment definitely — it will be something better and therefore, we will have be having a credit maybe whenever we get some recovery. So is that correct observation?
Nrupesh Shah
No, we hope so. And we expect that and we need to see the realization of two companies put together, isn’t it? Yes. Yes, yes. Yes. And as per our business models, whatever realization happens, we don’t really need that cash. We don’t need that money to grow the business. Yes, yes. So that will be in addition to our current treasury position. Yes. And as you mentioned that maybe those companies after divestment also, whoever is the buyer of that company may continue to source the production from India. So for the sale, sales may not be affected. To comment on that, but it’s very much feasible due to a variety of reasons.
Deshkande
Okay. Okay. Thank you very much.
Nrupesh Shah
And the second question was regarding this as. And also keep in mind that InCo Mexico is having own brands and Climate Technology is having own brands. But having said that, over a period of time, Sympany India has also to an extent, established its own brand in respective territory. So there are several combinations apart from the kind of the supply-chain which we have established, which is also going to be hugely beneficial for the new acquir and hence they may like to continue in their own interest also
Deshkande
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your question to two per participant. If you have a follow-up question, I would request you to rejoin the queue. The next question is from the line of Sanjay Javla from Investments Manager. Please go-ahead.
Sanjay Javla
Thank you. Thank you for the opportunity. I just couple of housekeeping questions. In your standalone revenue that you’ve reported this year, which is around INR1,180 crores for the year, what is the mix of domestic sales versus exports?
Nrupesh Shah
Girish, you can share this. In just a moment, our CFO is getting of this. Meanwhile, if you have any other question,
Sanjay Javla
So I have a follow-up to this once I get some sense. So on the domestic side, whatever that number may be, what is the mix of your core air cooler revenues versus the adjacent and newer categories, broadly the mix? That’s a follow-up. And domestic and export? Y
Nrupesh Shah
Yes. So domestic is INR1,065 crores and the export is INR117 crore. So broadly you can say that 90% is domestic and 10 percentage is export.
Sanjay Javla
Got it. Got it. One and yes, it does. Yes, it does. On the domestic, the follow-up is how does the split look like between your core cooler revenues and the adjacent and newer category revenues. So I think in response to earlier question, we tried to answer that. So if we consider household aircular and we consider adjacent plus LSV plus diesels and spats, now it is in high double-digit percentage, which used to be low single-digit percentage few years before. And at a console level, it will be much higher. Understood. So it’s high-teens right now. And where do you think this mix might be headed over the next, let’s say, three to five years? And then what is the corresponding impact on the gross margins as a result of that?.
Nrupesh Shah
No, I think very difficult to quantify that. And again, as per our IR policy, we won’t be in a position to answer that even though obviously we do have the short-term to long-term business plan not only for adjacent categories, for each of the product and for each of the categories.
Sanjay Javla
Okay. Okay. So my last question is on the air cooler side, how has your market-share behaved on a Y-o-Y basis based on your estimates? And how confident are you of holding on to your market-share in the air cooler in the domestic side.
Nrupesh Shah
So Sanjay, again, too early to comment on that. Initial indications are clearly in our favor. Again, you would — you know our business model. We — we are the market-leader and even in terms of placing the material in advance across the channels, we lead the market. So that has helped contribute to-high tertiary sales of our product because it was already there in the market before the weather sort of played a bit differently in the South. However, we do not have firm third-party reports yet about the market-share. So I’ll not put the formal figure of where we are right now.
Sanjay Javla
Okay, got it. Thank you and all the best. Thank you.
Operator
Thank you. The next question is from the line of Rahul Gajari from Securities India. Please go-ahead.
Rahul Gajari
Yeah, hi. Good afternoon, gentlemen, and thanks for the opportunity. I had two questions. One was on the exceptional items and I think you touched upon that impairment very well. So I understand what has really happened in the Australian entity. The second question I had was, I think just continuation of the earlier question on domestic and export. I wanted to know-how are exports doing because I think sometime back, certain geographies like Sri Lanka, Egypt had some trouble. I want you to specifically call-out which particular geographies are doing well for you and where are you getting incremental inquiries for inquiries from? And how do you see this export number of INR117 odd crore shaping up over the next, say, two years or two years or so, especially given the tariffs which are there on China and other entities. Thank you very much.
Nrupesh Shah
So Rajesh Mishra will answer that. He is a CEO international business, please. So in terms of the international business, you mentioned of Sri Lanka, yes, we had an issue with Sri Lanka in the past few years, but the good thing is now we have bounced back and Sri Lanka is back on-track. Middle-East, we are doing pretty well. We have now presence across all the countries in GCC. We are doing pretty good in Africa. Europe, we have a direct presence. We have our own people-based out of UK and Spain. So both Northern and Southern Europe, we have made some good inroads.
So all-in all, I would say we have expanded pretty well. The only challenging territory as of now is Egypt and Sudan. Egypt used to be a big market, but because of certain regulations wherein they are unable to remit money. So while we have a lot of inquiries and potential buyers, but we are unable to sell-in that market. Overall, I would say all the territories are growing pretty well and we believe that — and the good part is that the coolers are gaining traction and people in more-and-more countries are understanding that this is a product which definitely has a lot of potential.
So we believe that in the coming years, air coolers will see good growth in most of the countries. And you’re not talking about US because that could be a big market. Correct. So US is a massive opportunity. And as had mentioned in his presentation, we already have some serious inquiries from other large US buyers, including the top retailers. You know, they wanted us to supply a sizable quantity in this season, which would be starting pretty soon. Now unfortunately, because of the eight weeks of lead-time and the production time that is required, we won’t be able to meet that requirement, but we are definitely shipping some quantity this year. We also are you know, very, very kind Of upbeat about opportunities in the US, especially with what has happened on the tariff front with China. So as far as air coolers are concerned, it is only Chinese companies which are in competition and with them out-of-the race, I think we believe that we have a very good opportunity in the US market. Yeah. Okay, not necessarily number, but you think that your export business can double over the next, say, three years or so, given the opportunity that we are seeing now? Yeah. Obviously, we have all the reasons to believe.
Rahul Gajari
Okay. Thank you very much and all the very best.
Operator
Thank you. The next question is from the line of from Investments. Please go-ahead.
Unidentified Participant
Yeah, good afternoon. Am I audible? Yeah. Go-ahead. Yeah. Just two questions. One was on your employee cost, I can see the improvement in EBITDA is largely driven by reduction in employee cost. Any particular reason why certainly drop-in employee cost?
Nrupesh Shah
Yeah. If you could — if you could maybe help us understand your observation better because at the overall level, the employee cost as a percent of the turnover is well within the bank that we have historically estimated it. I think your observation is reduction in absolute amount of employee cost, but scale of operation and economies of scale have played the role because as you will appreciate, either employee cost or any overheads, not necessarily go up in-line with the growth of sales and profitability that some in terms of percentage of the turnover or even profitability, it has given positive effect and so even few other factors. And that’s always to happen.
Unidentified Participant
Okay. Thanks a lot. The second question was on, since in your December quarter, you had mentioned that you have formed in a lot of inventory into the channels because of big demand for and the inventory in the channels have kind of diminished after previous season last year. Given that there could be some kind of a setback because of this summer this year. Is there any possibility of using some of that inventory for your export orders or their different levels?
Nrupesh Shah
So whether that’s what we said in December quarter and even in the March quarter, that is part of our standard business approach. So we placed McCain in advance in the market and we still are quite bullish that we will be able to address the channel inventory within the domestic market. In any case, most of the global markets require different products as well as specifications and the domestic inventory is hardly useful for the global markets.
Okay. And lastly, this is the FDA side with UK literally in response to that question, please keep in mind that so-far even in June quarter, even though it is muted, but there has been decent amount of lifting by the trade also in B2C, which is so decent amount of lifting would be there, only and only if there would have been down the line secondary customer sales because that is also important to notice. And that too in June quarter, in fact, post 28th February, whatever billing is done, it is without any off-season discount.
Unidentified Participant
Okay. And last question was on this with UK. Is there any benefit that the company has known?
Nrupesh Shah
Not really. UK is not such a huge, huge market. In any case, the duties weren’t there, so really it will not matter.
Unidentified Participant
Okay. Thanks a lot. Thank you very much.
Operator
Thank you. Ladies and gentlemen, please limit your question to two per participant. If you have a follow-up question, I would request you to rejoin the queue. The next question is from the line of Rohit Maheshwari from Tata AIG. Please go-ahead.
Rohit Maheshwari
Good afternoon, sir, and congratulations for a good set of numbers. First question is out of INR186 crores quarter-over-quarter sales, can you help with the different sales number which you had in-quarter three, which you booked in-quarter four?
Nrupesh Shah
No, we can’t quantify that. Obviously in the interest of the competition and otherwise, but our March quarter performance is on account of one is our differences. But secondly, also decent traction and collection because vis-a-vis whatever sales we have generated in March quarter, no way unbilled advance would have contributed a more than 25 percentage. So even in normal-course, I think March quarter collection across the channel territories and products have been quite different.
Rohit Maheshwari
Okay. Sir, second question is, maybe I missed your the April 12 call. So just maybe I would be repeating it again. So like you — CT Austria, which you have decided to exit, like you have — you have given a seven-odd years to transform the company from where it was and where it is today and you said in the call that it’s a $6 billion to $8 billion type of market.
Nrupesh Shah
But I’m not able to understand like if you think it’s a decent market and you can find a prospective buyers and it’s such a great market and given to a company for seven odd years to transform. And now you are exiting it either you are finding up operational challenges or something. Can you give some — throw some light on this part. No, we have given enough light red light and green light in terms of the numbers and performance.
However, just to summarize, we acquire this company in July 18 and again you know irrespective of the reasons, ultimately what matters is the performance and the reality is performance is not up to the mark. But still going into some details, just 15 months then after stringent lockdown of COVID happened over there. So whatever transformation measures we had thought of, it got delayed almost by 2.5 years and our real work started post January, February ’22.
So as a first step, as we know the base, we reduce cost of doing a business that is by more than 50% so-far, while acquiring it was $15 million and currently it stands at $7 million. Secondly, there were some local change in the regulation in terms of the gas-ducted heaters, et-cetera. On account of that, we had to quickly transform the product category. And now in last two quarters, the products which we have launched are much more suitable and better, along with we were working for last three years to create the dealer and distribution network, which is also reasonably in-place and most importantly, hacking the complete sourcing as well as supply-chain in-place.
So it is there. So in light of that, we expect the best possible value realization considering the prospects. And also we believe that as a geography, as a product category, whether or city seems to be of good interest for prospective buyers.
Okay. So just to add to what you mentioned. Look, so currently, the CT operations are now almost at the final stage of turnaround. So as you would have seen as we mentioned that the last quarter we had a growth. And going-forward, we are confident that CT will register reasonable growth. Earlier, we were playing in a market which had a total addressable market size of about 200 million. Now we are in a market with the new products that we have introduced, 5 billion market size. What it? It’s 5 million to 7 million, yeah, billion, billion, sorry.
So what we’re trying to say is that we are into a stage where we are very confident about future of Citi. So therefore, we expect a reasonable and good valuation of CT and you know, what it also means that it is not going to be a desperate sale at all. We will realize a reasonable value. And the whole idea is that we want the management bad bit to be focused around markets where we see the opportunities — opportunities to be of bigger size. So sir, give me — just to give me — just related to this question, when you’re saying it is about to give a turnaround and you are seeing a given market of $5 billion to $7 billion type of market And the — like the outlook looks good as per your — what you are guiding at. So it clearly makes several of either you would have found the better opportunity in terms of growing the company to next level rather than putting your energy to see Australia now, so can I say that? So it is turned around, it will take some more time and a lot of effort and energies from the management here to really take it to that next level and bring — and reap the real benefits. And we believe that the same time spent in-markets like Brazil or US or other markets, we will kind of gain a lot more. So it is choosing between good and better. So that is what — it was a tough call, but we felt that with the limited time, we focus on markets which give up a much larger — which have much larger potential for us. Okay. Just last question. Kimi, why don’t we think of entering into BLDC fan market because it will be an adjacent market for us.
Unidentified Participant
Yes, Kimi and I think this is the market which is growing very fast in India and it is poised to reach to a decent size by 2029. Are we thinking or we are at all not thinking on those lines?
Nrupesh Shah
. So Rohit, that’s an interesting question and I do understand the BLDC market for fans is growing. It’s not a thought that has not crossed our mind and we are constantly generating multiple categories. While on BLDC, I must say that we have introduced BLDC coolers and we are the first one to use BLDC coolers in the market in India. And we also have our tower fans with the — with the BLDC technology. Coming back to fans, we will continue to evaluated. And as and when we find whether that category or something else suitable to our sort of preferences and margin expectation, we will make a move.
Yes. This was my precisely point because you have all the ingredients with you, you have your game, a balance sheet is where you have already launched BLDC game. You know technology, so it can be a perfect bet for you in the market, which is expected to be a $2 billion type of market by 2029, which is poised to grow at 9%, 9.5% odd percent
Unidentified Participant
. So thanks. Thanks. That’s it. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Nrupesh Shah
Great. Thank you very much everybody for participating in this call. We hope we have answered your questions adequately and thrown light on all the issues that have been raised. So looking-forward to seeing you in next quarter. Thank you and have a great day. Bye-bye.
Operator
Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines