Slide 1: Salzer Electronics Limited Result Update Presentation Q2 & H1 FY20
Salzer Electronics Limited Result Update Presentation Q2 & H1 FY20
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Salzer Electronics Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with an
Slide 3: Table of Contents
Table of Contents Financial Highlights Company Overview Business Overview Way Ahead 3
Slide 4: Financial Highlights
Financial Highlights
Slide 5: Joint Managing Director's Message
Joint Managing Director’s Message Commenting on the results, Mr. Rajesh Doraiswamy, Joint Managing Director, said : “I am happy to share that we have been able to deliver a good growth of around 15% in the first half, despite the challenges of lower demand and slowdown in the overall Indian industry
Slide 6: Key Developments till date
Key Developments till date ▪ Salzer Electronics - an approved vendor for Schneider - was awarded the Best Collaborative Supplier for 2019 ▪ In line with the focus on increasing product offerings and expanding footprint into newer segments along with access to all India dealer network, the Company ac
Slide 7: Q2 FY20 Financial Highlights
Q2 FY20 Financial Highlights Rs. in Crore Q2 FY20 Q2 FY19 Y-o-Y % Q1 FY20 Q2 FY20* Net Revenue 137.8 134.7 2.3% 162.1 143.9 Raw Materials 101.8 98.5 126.5 104.5 Employee Cost 6.2 6.7 6.3 7.4 Other Expenses 12.3 12.8 12.6 13.6 Total Expenditure 120.3 118.0 145.5 125.5 EBITDA 17.5 16.7 4.8% 16.7 18.4
Slide 8: Q2 FY20 Revenue Breakup – Business Verticals
Q2 FY20 Revenue Breakup – Business Verticals Q2 FY19 Q2 FY20 Industrial Industrial Switchgear, Switchgear, 47.1% 43.7% Wire & Cable, Energy 42.7% Management , Energy 2.1% Management , 4.6% Building Segment, 6.0% Wire & Cable, Building Segment, 44.9% 9.1% ▪ Industrial Switchgear – 47.1% of net revenu
Slide 9: Q2 FY20 Revenue Breakup – Geographical
Q2 FY20 Revenue Breakup – Geographical Q2 FY19 Q2 FY20 Middle East, Asia (Exclu. India), Middle East, 2.7% Asia (Exclu. India), 1.9% 6.4% 7.6% U.S, 2.1% U.S, 4.5% Europe, Europe, 4.7% 6.0% India, India, 80.4% 83.9% 9
Slide 10: Key Financial Highlights – H1 FY20 (YoY)
Key Financial Highlights – H1 FY20 (YoY) 14.8% Revenue Rs. 299.9 crore 11.4% EBITDA Rs. 34.2 crore 15.5% PAT Rs. 11.7 crore ▪ Increase in Revenue and EBITDA mainly driven by growth in Industrial Switch Gear and Wires & Cables businesses ▪ Contribution from exports was 15.2% in H1 FY20 10
Slide 11: H1 FY20 Financial Highlights
H1 FY20 Financial Highlights Rs. in Crore H1 FY20 H1 FY19 Y-o-Y % Net Revenue 299.9 261.2 14.8% Raw Material Expenses 228.3 194.6 Employee Expenses 12.5 11.0 Other Expenses 25.0 24.9 Total Expenditure 265.7 230.5 EBITDA 34.2 30.7 11.4% EBITDA Margin (%) 11.40% 11.75% (35 bps) Other Income 0.9 0.3 De
Slide 12: H1 FY20 Revenue Breakup – Business Verticals
H1 FY20 Revenue Breakup – Business Verticals H1 FY19 H1 FY20 Industrial Industrial Switchgear, Switchgear, 41.7% 40.6% Wire & Cable, Energy Energy 48.6% Management , Management , Wire & Cable, 2.4% 1.9% 50.2% Building Segment, Building Segment, 6.2% 8.4% ▪ Industrial Switchgear – 41.7% of total reve
Slide 13: H1 FY20 Revenue Breakup – Geographical
H1 FY20 Revenue Breakup – Geographical H1 FY19 H1 FY20 Middle Asia (Exclu. Middle Asia (Exclu. India), East, 1.8% India), 4.4% East, 3.3% 6.7% U.S, 2.6% U.S, 2.7% Europe, Europe, 4.4% 4.9% India, 84.5% India, 84.8% 13
Slide 14: Balance Sheet as on 30th Sept'19
Balance Sheet as on 30th Sept’19 As on 30th As on 31st As on 30th As on 30th As on 31st As on 30th Rs. Crore Rs. Crore Sept’ 19 Mar’ 19 Sept’ 18 Sept’ 19 Mar’ 19 Sept’ 18 Shareholder’s Funds 295.2 287.2 275.6 Non-current assets 239.1 215.9 213.4 Share capital 16.0 16.0 15.9 Property, Plant & Equipme
Slide 15: Key Financial Highlights – Annual
Key Financial Highlights – Annual Revenue (Rs. Crore) EBITDA (Rs. Crore) / Margins (%) 559.8 70 13% 11.9% 12.0% 60 442.8 11.5% 11.4% 12% 385.0 50 361.1 40 11% 30 63.6 10% 53.3 20 42.9 44.1 9% 10 0 8% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Net Profit (Rs. Crore) Networth as on 31st March (Rs. Crore)
Slide 16: Company Overview
Salzer Electronics Company Limited Overview Investor Presentation FY17
Slide 17: Company Overview
Company Overview Leading player offering total and customized electrical solutions ▪ Presence in Industrial Switchgears, Wires & Cables and Energy management business ▪ Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share Extensive Product portfolio across verticals wi
Slide 18: From a Single Product Company to manufacturing multiple products across sectors
From a Single Product Company… ▪ Unit I (Coimbatore) – manufacture ▪ Leading player offering total and contactors, relays, panels, energy customized electrical solutions savers ▪ More than 15 different products ▪ Starting of long term association with ▪ 2,000 employees L&T ▪ 4 manufacturing units ▪
Slide 19: Professional Management
Professional Management R.Doraiswamy ▪ Qualified Electrical Engineer and Technocrat Entrepreneur with over 2 decades of experience Managing Director ▪ Vast Experience in Foreign Collaboration & wide global contacts D.Rajeshkumar ▪ Electrical Engineer, India; Post Graduate in Business Management, US
Slide 20: Business Overview
Business Overview
Slide 21: Business Overview
Business Overview Industrial Switch Gear Products Copper Products ▪ Transformers ▪ Wires & Cables ▪ Terminal Blocks ▪ Flexible Bus Bars ▪ Rotary Switches ▪ Enamelled Wires ▪ Isolators ▪ Bunched Conductors ▪ General Purpose relays ▪ Tinned Copper Wires ▪ Wiring Ducts ▪ MPCB’s ▪ Contactors & OLR’s ▪ C
Slide 22: Wide Product Suite – Industrial Switch gears
Wide Product Suite – Industrial Switch gears Products Features ▪ More than 75 sizes Cable Ducts/ Wire Ducts ▪ India’s largest RoHS and Halogen Free Ducts UL and CSA Listed ▪ 6A to 400 Amps Rotary Switches ▪ > 2500 ranges ▪ UL & CB Tested ▪ 16 to 250 Amps ▪ UL 50 rated Enclosed mounting Isolators (Di
Slide 23: Wide Product Suite – Industrial Switch gears
Wide Product Suite – Industrial Switch gears Products Features ▪ 16 to 250 Amps ▪ UL 50 rated Enclosed mounting Contractors & Overload Relays ▪ Changeover Switches ▪ DC – PV Isolators ▪ CB Tested Two Frames Motor Protection Circuit ▪ 0.1 amps to 63 Amps Breaker(MPCB) ▪ Type F Co-ordinated ▪ UL Liste
Slide 24: Wide Product Suite – Building Products
Wide Product Suite – Building Products Products Features Automatic Source Changeover ▪ Unique - patented design - Contactor based ACCL with Current Limiter ▪ Heavy Duty - AC 32A and AC22A utilization category ▪ Easy to Install Distribution Board ▪ User Friendly ▪ Durable ▪ High Performance – 10KA Mi
Slide 25: Wide Product Suite – Copper Products
Wide Product Suite – Copper Products Products Features From 0.5- 240 Sq mm PVC Insulated Copper wires & ▪ Single & Multi Core Cables ▪ FR, FRLS, Halogen Free ▪ UL Listed Upto 1000 Amps Flexible Busbars ▪ Only Manufacturer in India ▪ UL Listed ▪ Power Cable Harness Wire Harness ▪ Control cable harnes
Slide 26: Wide Product Suite – Energy Mgmt. Services
Wide Product Suite – Energy Mgmt. Services ▪ Increases lamp-life by average of 20% for HPSV lamps ▪ 30% reduction in energy consumption under normal Energy Saver working conditions ▪ Reduces power consumption by optimizing voltage & Panels ▪ State of art GSM/ GPRS technology is used for monitoring a
Slide 27: Wide Product Suite – Customized for OEM's
Wide Product Suite- Customized for OEM’s CT’s Terminal Socket Coils / Inductors Panels In-house manufacturing and R&D enables superior customization of products 27
Slide 28: Key Strengths
Key Strengths Wide Distribution Network Strong Customer Relationships ▪ Wide distribution network – international and domestic ▪ Strong customer relationships across globe ▪ Tie up with L&T – access to over 350 dealers Complete Backward Integration ▪ Preferred supplier to GE, Schneider and in India;
Slide 29: Five Manufacturing facilities
Five Manufacturing facilities... UNIT I UNIT 2 UNIT 3 UNIT 4 UNIT 5 ▪ Rotary Switch ▪ Toroidal Transformers ▪ Wiring Accessories ▪ Wires & Cables ▪ Enamelled Copper ▪ Contactors & Relays ▪ Isolators (Dis-connectors) ▪ Flexible Bus Bars Wires ▪ Panel Assembly ▪ Terminals ▪ Bunched Conductors ▪ Fine E
Slide 30: With In-house process capabilities
...With In-house process capabilities... ▪ Full fledged Type testing laboratory ▪ In-house tool room facility for manufacturing and – Loads up to 500Amps servicing of Moulds and press tools – Environmental test chamber for humidity test – CNC Wire Cut Machines and Spark erosion machines – Salt spray
Slide 31: And a strong R&D team
...And a strong R&D team R&D expenses (Rs crore) ▪ In-house R&D Center − More than 35 engineers 8.4 8.5 − Recognized by Department of Science, Govt of India 7.8 ▪ Patented Rotary switches ▪ Five patents in process − Manual Single-Phase Starter with no voltage tripping, Energy 4.3 Saver System for St
Slide 32: Internationally certified
Internationally certified ISO 9001 ISO 14001 ISO 18001 CE Certification UL Certification CB certification RoHS Intertek Semko approval CSA Certification ... Across entire product portfolio 32
Slide 33: Blue Chip Customers
Blue Chip Customers ▪ Technical Tie-up with American Company ▪ Marketing Tie-up with L&T for Indian Market C3Controls, to manufacture & market contactors & overload relays ▪ Largest supplier of rotary switches to Indian ▪ Technical Tie-up with Trafomodern for Three Phase Railways Transformers ▪ Pref
Slide 34: Wide Distribution Network
Wide Distribution Network International Domestic ▪ Direct network across 50 countries Direct network ▪ Tie up with L&T – access to more than 350 ▪ 23% of sales from global distribution across 50 dealers in India ▪ 40 international distributors countries ▪ Direct network for Modular Switches – 50 ▪ P
Slide 35: Way Ahead
Way Ahead
Slide 36: Way Ahead
Way Ahead Operational Excellence ▪ Consistently executing business strategy and continued focus on improving operating costs by sourcing quality raw materials and efficient manpower Venture into new project/ product development ▪ Look for Technical alliances to develop newer and technically advanced
Slide 37: Thank You
Thank You SALZERELEC 517059 SZE IN SALZ.BO For further information, please contact: Company : Investor Relations Advisors : Salzer Electronics Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Baskarasubramanian Ms. Savli Mangle baskarasubramanian@salzergroup.com savli@bridge-ir.com Mr. Smit Shah smit@br