Slide 1: Salzer Electronics Limited Result Update Presentation Q4 & FY23
Salzer Electronics Limited Result Update Presentation Q4 & FY23 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 Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said: “Our fourth quarter performance has been in line with our expectations. We continued to see good growth coming in from all business divisions. We are witnessing a substa
Slide 6: Key Standalone Financial Highlights – Quarterly
Key Standalone Financial Highlights – Quarterly Revenue, EBITDA (excluding other income), PAT (Rs. Crore) 350 Revenue EBITDA PAT 40.0 295.1 35.0 300 245.0 240.0 30.0 250 228.0 233.1 211.8 24.5 23.7 23.3 25.0 189.7 194.8 200 19.6 18.4 17.7 20.0 149.0 16.2 150 14.8 12.9 15.0 100 9.0 9.7 9.0 8.8 10.0 7
Slide 7: Q4 FY23 Revenue Breakup – Business Verticals
Q4 FY23 Revenue Breakup – Business Verticals Q4 FY22 Q4 FY23 Industrial Switchgear, 48.1% Industrial Switchgear, 53.4% Wire & Cable, Building Segment, Wire & Cable, Building Segment, 44.6% 5.8% 40.9% 7.3% Industrial Switchgear – 53.36% of net revenues Wires & Cables – 40.86% of net revenues Bu
Slide 8: Q4 FY23 Revenue Breakup – Geographical
Q4 FY23 Revenue Breakup – Geographical Q4 FY22 Q4 FY23 Asia (Exclu. India), 7.6% Middle East, 2.2% Asia (Exclu. Middle East; 1.5% India), 14.1% North & South America, 4.7% North & South America, 5.6% Europe, 5.9%, Europe, 6.1% India, 72.8% India, 79.6% Contribution from Exports at 27.25% Export
Slide 9: Q4 FY23 Standalone Financial Highlights
Q4 FY23 Standalone Financial Highlights Standalone Consolidated Rs. in Crore Q4 FY23 Q4 FY22 Y-o-Y % Q3 FY23 Q4 FY23* Net Revenue 295.12 228.02 29.43% 239.95 302.73 Raw Materials 236.93 185.55 183.82 240.37 Employee Cost 9.90 8.60 8.59 10.78 Other Expenses 24.99 20.97 23.79 26.91 Total Expenditure 2
Slide 10: 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 11: FY23 Revenue Breakup – Business Verticals
FY23 Revenue Breakup – Business Verticals FY22 FY23 Industrial Industrial Switchgear, 54.3% Switchgear, 50.3% Building Building Wire & Segment, 6.5% Segment, 7.2% Wire & Cable, 43.2% Cable, 38.4% Industrial Switchgear – 54.33% of net revenues Wires & Cables – 38.44% of net revenues Building El
Slide 12: FY23 Revenue Breakup – Geographical
FY23 Revenue Breakup – Geographical FY22 FY23 Asia (Exclu. Middle East, Middle East, Asia (Exclu. 1.2% India), 9.7% 1.4% India), 11.8% North & South America, 5.2% North & South America, 5.7% Europe, 7.0% Europe, 6.8% India, 74.4% India, 76.7% Contribution from exports was 25.57% in FY23 12
Slide 13: Balance Sheet Highlights – Annual
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 0.49 351.47 309.4 331.3 287
Slide 14: 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 15: FY23 Standalone Financial Highlights
FY23 Standalone Financial Highlights Rs. in Crore FY23 FY22 Y-o-Y % FY23 (Consl)* Net Revenue 1,013.08 783.63 29.28% 1,037.09 Raw Material Expenses 798.63 621.79 807.16 Employee Expenses 35.15 29.40 39.37 Other Expenses 88.16 68.66 94.66 Total Expenditure 921.94 719.85 958.67 EBITDA (Excluding other
Slide 16: Standalone Balance Sheet Highlights
Standalone Balance Sheet Highlights As on As on Consol As on As on As on Consol As on Rs. Crore st st Rs. Crore 31 Mar’ 23 31 Mar’ 22 31st Mar’ 23* st 31 Mar’ 23 st 31 Mar’ 22 31st Mar’ 23* Shareholder’s Funds 402.89 351.47 413.26 Non-current assets 268.99 261.15 267.46 Share capital 16.18 15.98 16.
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… Unit I (Coimbatore) – 2017-23 manufacture contactors, relays, panels, energy savers Leading player offering total and Started commercial production of customized electrical solutions Three Phase Dry Type Transformers Starting of long term association with L&T More than
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 - 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 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 Plan to recycle water as per environmentally friendly Environment M./s JDS Associates for statutory audit, M/s. norm
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