Salzer Electronics Limited · NSE:SALZERELEC
Salzer Electronics — Q4 FY2019 Earnings Presentation
37 slides from Salzer Electronics's earnings presentation, May 24, 2019
Slide 1: Salzer Electronics Limited Investor Presentation Q4 & FY19
Salzer Electronics Limited Investor Presentation Q4 & FY19
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 Company Overview Business Overview Financial Highlights Way Ahead 3
Slide 4: Company Overview
Salzer Electronics Company Limited Overview Investor Presentation FY17
Slide 5: 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 6: From a Single Product Company…
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 7: 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 8: Business Overview
Business Overview
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 15
Slide 16: 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 17: Four Manufacturing facilities...
Four Manufacturing facilities... UNIT I UNIT 2 UNIT 3 UNIT 4 ▪ Rotary Switch ▪ Toroidal Transformers ▪ Wiring Accessories ▪ Wires & Cables ▪ Contactors & Relays ▪ Isolators (Dis-connectors) ▪ Flexible Bus Bars ▪ Panel Assembly ▪ Terminals ▪ Bunched Conductors ▪ Lighting Energy Savers ▪ Wiring Ducts
Slide 18: ...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 19: ...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 20: 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 20
Slide 21: 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 & over load relays ▪ Largest supplier of rotary switches to Indian ▪ Technical Tie-up with Trafomodern for Three Phase Railways Transformers ▪ Pre
Slide 22: 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 23: Financial Highlights
Financial Highlights
Slide 24: 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 during the financial year we have once again demonstrated a good growth in our revenues of over 25% YoY, despite the continued sluggish in the electrical indu
Slide 25: Key Financial Highlights- Q4 FY19 (YoY)
Key Financial Highlights- Q4 FY19 (YoY) 22% Revenue Rs. 155.0 crore 3% EBITDA Rs. 16.9 crore 73% PAT Rs. 8.4 crore ▪ Revenue mainly driven by all three key businesses of Industrial Switch Gears, Building segment and Wires & cables ▪ Contribution from domestic sales at 90.5% - mainly driven by all bu
Slide 26: Q4 FY19 Financial Highlights
Q4 FY19 Financial Highlights* Rs. in Crore Q4 FY19 Q4 FY18 Y-o-Y % Q3 FY19 Total Income from Operations 155.0 126.8 143.5 Excise Duty 0.0 0.0 0.0 Net Revenue 155.0 126.8 22.3% 143.5 Raw Materials 117.6 91.6 106.6 Employee Cost 4.7 5.4 7.6 Other Expenses 15.9 13.3 13.2 Total Expenditure 138.2 110.3 1
Slide 27: Q4 FY19 Revenue Breakup – Business Verticals
Q4 FY19 Revenue Breakup – Business Verticals* Q4 FY18 Q4 FY19 Industrial Industrial Switchgear, Switchgear, 43.9% 40.2% Energy Energy Wire & Cable, Management , Management , 48.8% 0.7% Wire & Cable, 4.1% Building Segment, 50.8% Building Segment, 4.6% 6.9% ▪ Industrial Switchgear – 40.2% of net reven
Slide 28: Q4 FY19 Revenue Breakup – Geographical
Q4 FY19 Revenue Breakup – Geographical* Q4 FY18 Q4 FY19 Middle East, Asia (Exclu. India), Middle East, 3.9% Asia (Exclu. India), 1.5% U.S, 1.6% 1.7% 5.8% U.S, 2.9% Europe, 2.4% Europe, 4.8% India, India, 85.0% 90.5% * Numbers as per Ind AS guidelines 28
Slide 29: Key Financial Highlights – FY19 (YoY)
Key Financial Highlights – FY19 (YoY) 26% Revenue Rs. 559.8 crore 19% EBITDA Rs. 63.6 crore 20% PAT Rs. 24.0 crore ▪ Revenue and EBITDA growth mainly driven by all three key businesses of Industrial Switch Gears, Building segment and Wires & cables ▪ 97% growth in building product segment 29
Slide 30: Key Financial Highlights – FY19
Key Financial Highlights – FY19 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 53.3 10% 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) 3
Slide 31: FY19 Financial Highlights
FY19 Financial Highlights* Rs. in Crore FY19 FY18 Y-o-Y % Total Income from Operations 559.8 453.3 ▪ Revenue and EBITDA Excise Duty 0.0 10.6 growth mainly driven Net Revenue 559.8 442.8 26.4% by all three key businesses of Raw Material Expenses 418.8 323.5 Industrial Switch Employee Expenses 24.9 19
Slide 32: FY19 Revenue Breakup – Business Verticals
FY19 Revenue Breakup – Business Verticals* FY18 FY19 Industrial Industrial Switchgear, Switchgear, 45.0% 41.4% Energy Energy Management , Management , Wire & Cable, 1.1% Wire & Cable, 2.6% 48.5% Building Segment, 49.2% 4.7% Building Segment, 7.6% ▪ Industrial Switchgear – 41.4% of net revenues, main
Slide 33: FY19 Revenue Breakup – Geographical
FY19 Revenue Breakup – Geographical* FY18 FY19 Middle Asia (Exclu. Middle Asia (Exclu. India), East, 1.5% India), 5.5% East, 2.3% 6.5% U.S, 2.2% U.S, 4.0% Europe, Europe, 4.0% 5.3% India, 82.8% India, 86.1% * Numbers as per Ind AS guidelines 33
Slide 34: Balance Sheet as on 31st Mar'19
Balance Sheet as on 31st Mar’19 As on 31st As on 31st As on 31st As on 31st Rs. Crore Rs. Crore Mar’ 19 Mar’ 18 Mar’ 19 Mar’ 18 Shareholder’s Funds 287.2 270.6 Non-current assets 215.9 209.3 Share capital 16.0 15.0 Property, Plant & Equipment 178.4 161.7 5% Convertible Preference Shares 0.0 0.5 Capi
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