Salzer Electronics hosted a conference call on May 29, 2024. In the conference call the company was represented by Rajesh Doraiswamy, Joint Managing Director.

Key takeaways of the call

Over 12% YoY growth in FY24 consolidated revenues - mainly driven by businesses of industrial switch gears and wires & cables

For FY25 the company expect a revenue growth of 18-23% not factoring any contribution from smart meter business. Thus the smart meter revenue will be over and above. 

BIS Certification for manufacturing of Smart Meters received – trial production to commence from June 2024. With expectation of 50% capacity utilization in FY25, the company expect a revenue of Rs 400-500 crore in current fiscal. Expect EBITDA margin of 15% for smart meter business, it is in trial production phase

Expect an EBITDA margin of 10.75% to 11% for FY25 with an expansion of about 75-100 bps  

For FY25 the company expect the industrial switchgears to register a growth of 22-23%, the cables & wires (including copper) 18-20% and building solutions 40%.

Salzer EV charger business – completed development of DC Fast chargers for EVs. It has passed all of one tests and the commercial lauch is delayed. The company and the partner is working on the communication software so as it can pass the ARAI approval test. So the launch is got delayed a bit compared to earlier expected launch during Q4FY24.

Contribution from Exports in Q4FY24 stood at 24.97% and at 26.93% in FY24

Seen positive trend in the increase of its sales prices, and anticipate this momentum to persist, contributing to the improvement of   EBITDA Margins.

The total debt as on March 31, 2024 was at Rs 307.87 crore, an increase of 11.07%YoY from    Rs 277.88 crore as on March 31, 2023