Slide 1: Salzer Electronics Limited Result Update Presentation Q3 & 9M FY24
Salzer Electronics Limited Result Update Presentation Q3 & 9M FY24 1
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 01) Financial Highlights 02) Company Overview 03) Business Overview 04) Way Ahead
Slide 4: Financial Highlights
Financial Highlights 4
Slide 5: Joint Managing Director's Message
Joint Managing Director’s Message “During the Third quarter of the fiscal year, we registered a consolidated revenue of Rs. 270.35 crores, accompanied by EBITDA (excluding other income) and PAT of Rs. 31.02 crore and Rs. 13.48 crore, respectively. The broader market experienced a sluggish pace espec
Slide 6: Key Consolidated Financial Highlights – Quarterly
Key Consolidated Financial Highlights – Quarterly Revenue, EBITDA (excluding other income), PAT (Rs. Crore) 350 Revenue EBITDA PAT 40.0 302.7 300 288.7 35.0 280.7 270.4 238.9 245.6 245.6 31.0 30.0 250 237.9 26.8 25.6 26.1 218.8 24.9 24.7 25.0 200 20.7 18.4 20.0 150 13.9 13.5 15.0 10.5 9.9 10.2 10.1
Slide 7: Q3 FY24 Revenue Breakup – Business Verticals
Q3 FY24 Revenue Breakup – Business Verticals Q3 FY23 Q3 FY24 Industrial Switchgear, 57.86% Industrial Switchgear, 54.8% Building Segment, Wire & Cable, Building Segment, Wire & Cable, 6.2% 39.0% 7.54% 34.60% Industrial Switchgear – 54.80 % of net revenues Wires & Cables – 39.02 % of net revenues
Slide 8: Q3 FY24 Revenue Breakup – Geographical
Q3 FY24 Revenue Breakup – Geographical Q3 FY23 Q3 FY24 Asia (Exclu. North & South Middle East, 1.4% Middle East; 1.1% India), 13.4% America, 8.4% North & South America, 6.8% Asia (Exclu. India), 8.6% Europe, 6.4% Europe, 6.8%, India, 71.7% India, 75.5% Contribution from Exports at 24.50% 8
Slide 9: Q3 FY24 Consolidated Financial Highlights
Q3 FY24 Consolidated Financial Highlights Rs. in Crore Q3 FY24 Q3 FY23 Y-o-Y % Q2 FY24 Net Revenue 270.35 245.60 10.08% 280.72 Raw Materials 198.28 185.68 214.17 Employee Cost 11.74 9.69 11.22 Other Expenses 29.31 25.32 28.54 Total Expenditure 239.33 220.70 253.93 EBITDA (Excluding other Income) 31.
Slide 10: 9M FY24 Consolidated Financial Highlights
9M FY24 Consolidated Financial Highlights Rs. in Crore 9M FY24 9M FY23 Y-o-Y % Net Revenue 839.74 734.36 14.35% Raw Material Expenses 637.93 566.79 Employee Expenses 33.37 28.59 Other Expenses 84.55 67.75 Total Expenditure 755.85 663.13 EBITDA (Excluding other Income) 83.90 71.23 17.78% EBITDA Margi
Slide 11: 9M FY24 Revenue Breakup – Business Verticals
9M FY24 Revenue Breakup – Business Verticals 9M FY23 9M FY24 Industrial Industrial Switchgear, 55.0% Switchgear, 54.7% Building Building Segment, 7.8% Wire & Segment, 5.9% Wire & Cable, 37.5% Cable, 39.0% Industrial Switchgear – 55.03% of net revenues Wires & Cables – 39.10% of net revenues Bu
Slide 12: 9M FY24 Revenue Breakup – Geographical
9M FY24 Revenue Breakup – Geographical 9M FY23 9M FY24 Asia (Exclu. Middle East, Middle East, Asia (Exclu. India), 10.9% 1.2% 1.3% India), 9.6% North & South North & South America, 5.8% America, 8.9% Europe, 7.1% Europe, 8.0% India, 72.3% India, 75.1% Contribution from exports was 27.7% in 9M FY24
Slide 13: Key Standalone Financial Highlights – Annual
Key Standalone Financial Highlights – Annual Revenue (Rs. Crore) EBITDA (Rs. Crore) / Margins (%) 100 11.5% 10.2% 14% 11.4% 9.0% 12% 1013.1 80 8.1% 10% 783.6 60 8% 559.8 566.9 605.6 91.4 6% 40 63.6 65.2 61.8 63.8 4% 20 2% 0 0% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Profit (Rs. Crore)
Slide 14: Standalone Balance Sheet Highlights – Annual
Standalone Balance Sheet Highlights – Annual Return on Capital Employed ( %) Return on Equity (%) 8.5% 9.0% 12.0% 8.4% 11.0% 11.6% 9.4% 6.2% 6.4% 8.6% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Debt to Equity(X) Networth as on 31st March (Rs. Crore) 0.71 0.68 0.56 0.60 402.89 0.49 351.47 309.
Slide 15: Working Capital & Borrowings
Working Capital & Borrowings Working Capital (Cr.) – Bar Chart Borrowing (Cr.) Working Capital (Days) – Line Chart 180 20000% 179 160 18000% 157 154 140 148 144 16000% 14000% 120 12000% 100 10000% 264.77 164.1 235.4 80 8000% 183.28 60 122.3 155.91 106.2 6000% 95.7 91.9 135.6 40 4000% 20 2000% 4.21 1
Slide 16: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights As on As on As on As on Rs. Crore th st Rs. Crore th st 30 Sept’ 23 31 Mar’ 23 30 Sept’ 23 31 Mar’ 23* Shareholder’s Funds 438.21 413.26 Non-current assets 274.15 267.43 Share capital 16.68 16.18 Property, Plant & Equipment 240.83 234.52 Other Equity 415.60 391.
Slide 17: Company Overview
Company Overview 17
Slide 18: About Us
About Us Leading player offering total and customized electrical solutions Wide Distribution network – local and global Presence in Industrial Switchgears, Wires & Own distribution network – local and global – Cables and Energy management business export to 50 countries Largest manufacturer of
Slide 19: From a Single Product Company…
From a Single Product Company… 2017-24 Started commercial production of Three Phase Dry Type Transformers Acquired Salzer Magnet Wires Unit I (Coimbatore) – manufacture contactors, relays, Upgrade in Credit Rating for long- panels, energy savers Leading player offering total and term borrowing to ‘C
Slide 20: Professional Management
Professional Management R. Doraiswamy M Laksminarayana Managing Director VP - Operations Qualified Electrical Engineer and Technocrat Entrepreneur with over 4 decades B.E (Electrical) with over 2 decades of experience of experience Responsible for Production, Planning, Inventory Management, Maintena
Slide 21: Business Overview
Business Overview 21
Slide 22: 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 23: Wide Product Suite- Customized for OEM's
Wide Product Suite- Customized for OEM’s CT’s Terminal Sockets Coils / Inductors Panels In-house manufacturing and R&D enables superior customization of products 23
Slide 24: Key Strengths
Key Strengths In-house manufacturing facilities with process capabilities ensures better product development and customization Well developed R&D enables continual product innovation Complete Wide distribution network – international and Backward domestic Integration Tie up with L&T – access to over
Slide 25: Six Manufacturing facilities...
Six Manufacturing facilities... UNIT I UNIT 2 UNIT 3 UNIT 4 UNIT 5 Hosur Plant Enamelled Copper Rotary Switch Toroidal Transformers Wiring Accessories Wires & Cables Wires Wire Harnesses Contactors & Relays Isolators (Dis-connectors) Flexible Bus Bars Fine Enamelled Copper Wires Panel Assembly Termi
Slide 26: ...With In-house process capabilities...
...With In-house process capabilities... Full fledged Type testing laboratory In-house tool room facility for manufacturing and servicing of Moulds and – Loads up to 500Amps press tools – Environmental test chamber for humidity test – CNC Wire Cut Machines and Spark erosion machines – Salt spray
Slide 27: ...And a strong R&D team
...And a strong R&D team In-house R&D Center R&D expenses (Rs crore) − More than 35 engineers − Recognized by Department of Science, Govt of India 12.00 Patented Rotary switches 10.37 10.04 9.07 Six patents in process 8.50 7.75 − Manual Single-Phase Starter with no voltage tripping, Energy Sav
Slide 28: Internationally certified
Internationally certified ISO 9001 ISO 14001 CE Certification ISO 18001 UL Certification CB certification RoHS Intertek Semko approval CSA Certification ... Across entire product portfolio 28
Slide 29: Blue Chip Customers
Blue Chip Customers Marketing Tie-up with L&T for Indian Market Largest supplier of rotary switches to Indian Railways Branding partner to various large OEM’s in India Technical Tie-up with American Company C3Controls, to manufacture & market contactors & overload relays Technical Tie-up w
Slide 30: Wide Distribution Network
Wide Distribution Network Direct network across 50 countries International Direct network across 50 countries 23% of sales from exports (FY22) 40 international distributors Plans to expand in US, Africa and Middle east Domestic Tie up with L&T – access to more than 350 dealers in India D
Slide 31: Way Ahead
Way Ahead 31
Slide 32: Way Ahead
Way Ahead Operational Excellence Focus on margin improvement Consistently executing business strategy and continued Increase sales of high margin products – existing focus on improving operating costs by sourcing quality and new raw materials and efficient manpower 01 Increase exports – fast growing
Slide 33: ESG Initiatives
ESG Initiatives Committed towards a cleaner, greener and healthier environment Optimise energy consumption Towards this end Company has identified installation of rooftop solar panels Plan to recycle water as per environmentally friendly Environment M./s JDS Associates for statutory audit, M/s. norm
Slide 34: ESG Initiatives - Carbon Emission by Scope
ESG Initiatives - Carbon Emission by Scope Scope 1 All Fossil fuels used in factories, such as diesel for backup power and fuels used in Cars, transport & fleet vehicles Scope 2 Electricity consumed at all factories and offices of Salzer owned facilities Also the avoidable emissions are calcul
Slide 35: Thank You
Thank You For further information, please contact: Salzer Electronics Ltd. Mr. Murugesh murugesan@salzergroup.com www.salzergroup.net Adfactorspr Pvt. Ltd. Ms. Savli Mangle savli.mangle@Adfactorspr.com Mr. Rupesh Rege Rupesh.rege@Adfactorspr.com www.adfactorspr.com 35