Salzer Electronics Limited · NSE:SALZERELEC
Salzer Electronics — Q2 & H1 FY25 Earnings Presentation
36 slides from Salzer Electronics's earnings presentation, Nov 11, 2024
Slide 1: Results Update Presentation Q2 & H1FY25
SALZER ELECTRONICS LIMIT Results Update Presentation Q2 & HIFY25 m U
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 TableOF CONTENTS of Contents FINANCIAL HIGHLIGHTS COMPANY OVERVIEW BUSINESS OVERVIEW WAY AHEAD 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS 4
Slide 5: Joint Managing Director's Message
Joint Managing Director’s Message “ 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
Slide 6: Key Consolidated Financial Highlights – Quarterly
Key Consolidated Financial Highlights – Quarterly Revenue, EBITDA (excluding other income), PAT (Rs. Crore) Revenue EBITDA PAT 400 40.0 33.1 347.1 344.2 350 326.6 35.0 31.3 35.3 302.7 300 288.7 30.0 280.7 31.0 27.3 26.8 270.4 25.6 26.1 245.6 24.9 245.6 24.7 250 237.9 25.0 20.7 200 20.0 150 13.5 13.3
Slide 7: Q2 FY25 Revenue Breakup – Business Verticals
Q2 FY25 Revenue Breakup – Business Verticals Q2 FY24 Q2 FY25 56.4% Industrial Switchgear 61.6% Industrial Switchgear 6.1% 37.5% 4.9% 33.5% Building Segment Wire & Cable Building Segment Wire & Cable Industrial Switchgear – 61.6% of net revenues Wires & Cables – 33.5 % of net revenues Building
Slide 8: Q2 FY25 Revenue Breakup – Geographical
Q2 FY25 Revenue Breakup – Geographical Q2 FY24 Q2 FY25 11.0% 1.8% 10.7% 2.1% Asia (Exclu. India) Middle East Middle East Asia (Exclu. India) 11.1% North & South 9.6% America North & South America 6.8% 10.9% Europe Europe 65.2% 70.9% India India Contribution from Exports at 29.15% 8
Slide 9: Q2 FY25 Consolidated Financial Highlights
Q2 FY25 Consolidated Financial Highlights Rs. in Crore Q2 FY25 Q2 FY24 Y-o-Y % Q1 FY25 Net Revenue 344.23 280.72 22.62% 356.90 Raw Materials 252.77 214.17 277.96 Employee Cost 14.35 11.22 12.74 Other Expenses 41.81 28.54 32.76 Total Expenditure 308.93 253.93 323.45 EBITDA (Excluding other Income) 35
Slide 10: H1 FY25 Consolidated Financial Highlights
H1 FY25 Consolidated Financial Highlights Rs. in Crore H1 FY25 H1 FY24 Y-o-Y % Net Revenue 701.14 569.40 23.14% Raw Material Expenses 530.72 439.65 Employee Expenses 27.09 21.63 Other Expenses 74.57 55.24 Total Expenditure 632.38 516.52 EBITDA (Excluding other Income) 68.76 52.87 30.05% EBITDA Margi
Slide 11: FY24 Consolidated Financial Highlights
FY24 Consolidated Financial Highlights Rs. in Crore FY24 FY23 Y-o-Y % Net Revenue 1,166.31 1,037.17 12.45% Raw Material Expenses 881.00 807.16 9.15% Employee Expenses 46.64 39.37 Other Expenses 121.70 94.75 Total Expenditure 1,049.33 941.27 EBITDA (Excluding other Income) 116.98 95.90 21.98% EBITDA
Slide 12: Consolidated Balance Sheet As on 30th September 2024
Consolidated Balance Sheet As on 30th September 2024 As on As on As on As on Rs. Crore st th Rs. Crore st th 31 Mar’ 24 30 Sept’ 24 31 Mar’ 24 30 Sept’ 24 Shareholder’s Funds 480.41 525.56 Non-current assets 289.65 305.40 Share capital 17.38 17.68 Property, Plant & Equipment 253.29 265.83 Other Equi
Slide 13: H1 FY25 Revenue Breakup – Business Verticals
H1 FY25 Revenue Breakup – Business Verticals H1 FY24 H1 FY25 55.1% Industrial Switchgear 56.6% Industrial Switchgear 5.7% 39.1% 4.9% 38.5% Building Segment Wire & Cable Building Segment Wire & Cable Industrial Switchgear – 56.6% of net revenues Wires & Cables – 38.5% of net revenues Building E
Slide 14: H1 FY25 Revenue Breakup – Geographical
H1 FY25 Revenue Breakup – Geographical H1 FY24 H1 FY25 10.1% 1.3% 2.0% Asia (Exclu. India) Middle East 10.3% Middle East Asia (Exclu. India) 9.1% North & South America 9.3% North & South America 8.7% 6.1% Europe Europe 70.8% 72.3% India India Contribution from exports was 27.72% in H1 FY25 14
Slide 15: Key Consolidated Financial Highlights – Annual
Key Consolidated Financial Highlights – Annual Revenue (Rs. Crore) EBITDA (Rs. Crore) / Margins (%) 140 11.5% 10.2% 14% 9.3% 1166.3 120 10.0% 12% 1037.2 100 8.1% 10% 783.6 80 8% 566.9 605.6 60 117.0 6% 95.9 40 4% 65.2 61.8 63.8 20 2% 0 0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Net Profit
Slide 16: Key Consolidated Balance Sheet Highlights – Annual
Key Consolidated Balance Sheet Highlights – Annual Return on Capital Employed ( %) Return on Equity (%) 12.7% 11.0% 11.6% 9.4% 9.7% 9.9% 8.6% 6.2% 6.4% 6.4% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Debt to Equity(X) Networth as on 31st March (Rs. Crore) 0.71 473.46 0.68 407.71 0.65 351.47 3
Slide 17: Working Capital & Borrowings
Working Capital & Borrowings Working Capital (Cr.) – Bar Chart Borrowing (Cr.) Working Capital (Days) – Line Chart 250 20000% 179 165 18000% 157 154 200 147 16000% 14000% 150 12000% 10000% 294.88 233.2 264.77 100 8000% 235.4 181.6 183.28 6000% 155.91 122.3 50 91.9 106.2 4000% 2000% 17.78 16.27 12.41
Slide 18: Company Overview
COMPANY OVERVIEW 18
Slide 19: About Us
About Us Leading player offering total and Experienced Management Team State-of- art manufacturing facilities Quality Standards, Assurance & customized electrical solutions Significant experience in Engineering Seven manufacturing units located in Certifications Incorporated in 1985 Industry T
Slide 20: From a Single Product Company…
From a Single Product Company… 1985 - 1995 2001 - 2014 2015 - 2020 2018 2021 – Till– Date Till Date Established to manufacturer Unit III - manufacture Started commercial Forays into EV Business through JVs with Kostad of CAM operated Rotary modular switches production of Three Phase Steuerun
Slide 21: Professional Management
Professional Management R. Doraiswamy - Managing Director M Laksminarayana - VP - Operations Qualified Electrical Engineer and Technocrat Entrepreneur B.E (Electrical) with over 2 decades of experience with over 4 decades of experience Responsible for Production, Planning, Inventory Management
Slide 22: Business Overview
“Y Y) Lu — Y ~ co OVERVIEW
Slide 23: Business Overview
Business Overview Industrial Switch Gear Products Smart Meters Transformers Copper Products Terminal Blocks Single Phase Wires & Cables Rotary Switches Building Electrical Products Meters Flexible Bus Bars Isolators Enamelled Wires Three Phase Modular Switches Energy General Pu
Slide 24: 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 24
Slide 25: Key Strengths
Key Strengths Complete Backward Integration Wide Distribution Network In-house manufacturing facilities with process 01 Wide distribution network – international and capabilities ensures better product development and customization domestic Well developed R&D enables continual product Tie up with L&
Slide 26: Seven Manufacturing facilities...
Seven Manufacturing facilities... Unit 1 Unit 3 Hosur Plant Unit 2 Unit 5 Rotary Switch Wiring Accessories Wire Harnesses Contactors & Relays Toroidal Transformers Panel Assembly Unit 4 Annur Plant Toroidal Transformers Enamelled Copper Wires Lighting Energy Savers Isolators (Dis-connectors) Fine En
Slide 27: ...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 – Loads up to 500Amps Moulds and press tools – Environmental test chamber for humidity test – CNC Wire Cut Machines and Spark erosion machines – Salt spray
Slide 28: ...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 12.00 12.00 − Recognized by Department of Science, Govt of India 10.37 10.04 Patented Rotary switches 9.07 Six patents in process − Manual Single-Phase Starter with no voltage tripping, Energy Saver S
Slide 29: 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 29
Slide 30: 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 31: Wide Distribution Network
Wide Distribution Network International Direct network across 50 countries 27% of sales from exports (FY24) 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 Direct network for Modular Switches
Slide 32: Way Ahead
WAY AHEAD 32
Slide 33: Way Ahead
Way Ahead Operational Excellence Focus on margin improvement › Consistently executing business › Increase sales of high margin strategy and continued focus on products – existing and new improving operating costs by 01 › Increase exports – fast growing sourcing quality raw materials and markets of U
Slide 34: 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 Environment Plan to recycle water as per environmentally friendly norms M./s JDS Associates for statutory
Slide 35: 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 36: Thank You
Thank You For further information, please contact: Salzer Electronics Limited Mr. Murugesh murugesan@salzergroup.com www.salzergroup.net Adfactors PR Private Limited Ms. Savli Mangle savli.mangle@Adfactorspr.com Mr. Rupesh Rege Rupesh.rege@Adfactorspr.com www.adfactorspr.com 36
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