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Consolidated net sales (including other operating income) of Salzer Electronics for the quarter ended Sep 2024 has increased 22.62% to Rs 344.23 crore. . This growth was mainly driven by higher demand for Industrial switchgear as well as wires and
cable businesses mainly due to high demand products like three phase transformers, wire harness,
relays and new product like contactors etc. Exports a revenue grew 3.1% YoY in Q2 FY25, driven by higher sales
from North and South America, Middle East and Africa and Asian countries. Operating profit margin has jumped from 9.54% to 10.25%, leading to 31.77% rise in operating profit to Rs 35.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 76.12% to 74.15%. Employee cost increased from 4.03% to 4.06%. Other expenses rose from 10.24% to 11.82%. Other income rose 5,289.66% to Rs 15.63 crore. PBIDT rose 88.07% to Rs 50.93 crore. Provision for interest rose 22.12% to Rs 10.16 crore. PBDT rose 117.32% to Rs 40.77 crore. Provision for depreciation rose 9.69% to Rs 5.66 crore. Profit before tax grew 158.16% to Rs 35.11 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 7.83 crore, compared to Rs 3.5 crore. Effective tax rate was 22.30% compared to 25.74%. Minority interest increased 76.92% to Rs 0.46 crore. Net profit attributable to owners of the company increased 172.56% to Rs 26.82 crore. For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Salzer Electronics has increased 23.14% to Rs 701.14 crore. Operating profit margin has jumped from 9.29% to 9.81%, leading to 30.01% rise in operating profit to Rs 68.76 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 77.17% to 76.35%. Employee cost decreased from 3.80% to 3.76%. Other expenses rose from 9.70% to 10.35%. Other income rose 1,556.86% to Rs 16.9 crore. PBIDT rose 58.89% to Rs 85.66 crore. Provision for interest rose 21.94% to Rs 19.9 crore. Loan funds rose to Rs 350.75 crore as of 30 September 2024 from Rs 292.13 crore as of 30 September 2023. Inventories rose to Rs 339.16 crore as of 30 September 2024 from Rs 279.96 crore as of 30 September 2023. Sundry debtors were higher at Rs 380.86 crore as of 30 September 2024 compared to Rs 317.82 crore as of 30 September 2023. Cash and bank balance rose to Rs 12.26 crore as of 30 September 2024 from Rs 8.58 crore as of 30 September 2023. Investments rose to Rs 10.55 crore as of 30 September 2024 from Rs 6.74 crore as of 30 September 2023 . PBDT rose 74.94% to Rs 65.76 crore. Provision for depreciation rose 14.77% to Rs 11.27 crore. Fixed assets increased to Rs 274.21 crore as of 30 September 2024 from Rs 243.12 crore as of 30 September 2023. Intangible assets increased from Rs 10.47 crore to Rs 11.64 crore. Profit before tax grew 96.22% to Rs 54.49 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 12.46 crore, compared to Rs 7.5 crore. Effective tax rate was 22.87% compared to 27.01%.Minority interest increased 73.47% to Rs 0.85 crore. Net profit attributable to owners of the company increased 108.19% to Rs 41.18 crore. Equity capital increased from Rs 16.68 crore as of 30 September 2023 to Rs 17.68 crore as of 30 September 2024. Per share face Value remained same at Rs 10.00. Promoters’ stake was 37.53% as of 30 September 2024 ,compared to 35.13% as of 30 September 2023 . Promoters pledged stake was 17.17% as of 30 September 2024 Cash flow from operating activities has turned negative Rs 7.02 crore for YTD ended September 2024 from positive Rs 1.10 crore for YTD ended September 2023. Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 30.99 crore, compared to Rs 17.69 crore during the YTD ended September 2023.
Management Comments :
Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said:
“During the Second quarter of the financial year, we registered a strong consolidated revenue of Rs. 344.23
crores with EBITDA (excluding other income) and PAT of Rs. 35.31 crore and Rs. 27.28 crore, respectively. This
growth was mainly driven by the higher margin switchgear business that led to margin improvement. This
growth also is significant, as we are seeing a slight slowdown in the growth in India amidst global uncertanity.
We have seen positive trend in decreasing raw material cost, expect this to continue which helped to improve
our EBITDA Margins. We are focusing on maintaining a balanced business mix between industrial switchgear
and wires & cables products to manage our overall margins.
I am pleased to announce that we have received our first order for smart meters. This achievement is a
testament to our team`s dedication to advancing smart metering technology. Our solution has garnered
significant interest, with evaluations currently underway by at least six additional AMISPs across India. We are
in advanced discussions with these partners and are optimistic about securing further orders. This momentum
reinforces our commitment to supporting India`s digital transformation in energy management through
cutting-edge smart meter technology."
We strive to maintain this growth trajectory to set our eyes on new summits of achievement. At Salzer,
innovation is in our manifesto, and our strong product offerings and brand position in the market has placed us
in a position to achieve new benchmarks for the future. Based on the domestic and export outlook, we are
optimistic on our overall business performance.
I thank the entire team at Salzer Electronics for their untiring efforts and all our stakeholders for their continued
support and faith in our Company.”
| Salzer Electronics : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
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| Particulars | 202409 | 202309 | Var.(%) | 202409 | 202309 | Var.(%) | 202403 | 202303 | Var.(%) |
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| Net Sales (including other operating income) | 344.23 | 280.72 | 22.62 | 701.14 | 569.40 | 23.14 | 1,166.31 | 1,037.17 | 12.45 | | OPM (%) | 10.25 | 9.54 | 71 bps | 9.81 | 9.29 | 52 bps | 10.03 | 9.25 | 78 bps | | OP | 35.30 | 26.79 | 31.77 | 68.76 | 52.89 | 30.01 | 116.98 | 95.90 | 21.98 | | Other Inc. | 15.63 | 0.29 | 5,289.66 | 16.90 | 1.02 | 1,556.86 | 1.95 | 1.70 | 14.71 | | PBIDT | 50.93 | 27.08 | 88.07 | 85.66 | 53.91 | 58.89 | 118.93 | 97.60 | 21.85 | | Interest | 10.16 | 8.32 | 22.12 | 19.90 | 16.32 | 21.94 | 34.09 | 26.12 | 30.51 | | PBDT | 40.77 | 18.76 | 117.32 | 65.76 | 37.59 | 74.94 | 84.84 | 71.48 | 18.69 | | Depreciation | 5.66 | 5.16 | 9.69 | 11.27 | 9.82 | 14.77 | 20.11 | 16.6 | 21.14 | | PBT | 35.11 | 13.60 | 158.16 | 54.49 | 27.77 | 96.22 | 64.73 | 54.88 | 17.95 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 35.11 | 13.6 | 158.16 | 54.49 | 27.77 | 96.22 | 64.73 | 54.88 | 17.95 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0.02 | - | | PBT after EO | 35.11 | 13.6 | 158.16 | 54.49 | 27.77 | 96.22 | 64.73 | 54.9 | 17.91 | | Taxation | 7.83 | 3.5 | 123.71 | 12.46 | 7.5 | 66.13 | 17.66 | 15.28 | 15.58 | | PAT | 27.28 | 10.1 | 170.10 | 42.03 | 20.27 | 107.35 | 47.07 | 39.62 | 18.80 | | Minority Interest (MI) | 0.46 | 0.26 | 76.92 | 0.85 | 0.49 | 73.47 | 1.19 | 0.91 | 30.77 | | Net profit | 26.82 | 9.84 | 172.56 | 41.18 | 19.78 | 108.19 | 45.88 | 38.71 | 18.52 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 26.82 | 9.84 | 172.56 | 41.18 | 19.78 | 108.19 | 45.88 | 38.71 | 18.52 | | EPS (Rs)* | 15.17 | 5.56 | 172.56 | 23.29 | 11.19 | 108.19 | 25.95 | 21.88 | 18.58 | | | * EPS is on current equity of Rs 17.68 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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