Net sales (including other operating income) of Salzer Electronics has increased 22.07% to Rs 238.87 crore driven largely by sharp 42% jump in sales of Industrial Switchgears to Rs 114.90 crore. The sales of wires & cables (W&C) was up by 4% to Rs 106.54 crore and that of building segment was up by 43% to Rs 17.44 crore. Contribution from Exports at 20.43%, export revenue grew 22.5%,
driven by higher exports to the Americas, Middle East, Africa, and Europe. Operating profit margin has declined from 8.53% to 5.82%, leading to 16.71% decline in operating profit to Rs 13.91 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 79.53% to 80.04%. Other expenses rose from 8.14% to 9.76%. Other income fell 62.68% to Rs 0.53 crore. PBIDT fell 20.31% to Rs 14.44 crore. Provision for interest fell 4.73% to Rs 5.04 crore. PBDT fell 26.73% to Rs 9.4 crore. Provision for depreciation fell 1.67% to Rs 4.13 crore. Profit before tax down 38.93% to Rs 5.27 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 0.7 crore, compared to Rs 1.47 crore. Effective tax rate was 13.28% compared to 16.67%. Minority interest increased 70.51% to Rs 1.33 crore. Net profit attributable to owners of the company decreased 50.68% to Rs 3.24 crore. Full year results analysis.
Net sales (including other operating income) of Salzer Electronics has increased 28.41% to Rs 803.54 crore. Operating profit margin has declined from 10.07% to 8.24%, leading to 5.11% rise in operating profit to Rs 66.23 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 77.34% to 78.83%. Employee cost decreased from 4.41% to 4.10%. Other expenses rose from 8.38% to 8.98%. Other income rose 12.73% to Rs 2.48 crore. PBIDT rose 5.37% to Rs 68.71 crore. Provision for interest fell 6.84% to Rs 19.88 crore. PBDT rose 11.31% to Rs 48.83 crore. Provision for depreciation rose 2% to Rs 16.33 crore. Profit before tax grew 16.65% to Rs 32.50 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 8.3 crore, compared to Rs 6.63 crore. Effective tax rate was 25.54% compared to 23.67%. Minority interest increased 87.21% to Rs 1.61 crore. Net profit attributable to owners of the company increased 10.09% to Rs 22.59 crore. Other developments
Equity capital stood at Rs 15.98 crore as of 31 March 2022 to Rs 15.98 crore as of 31 March 2021. Per share face Value remained same at Rs 10.00. Promoters’ stake was 32.34% as of 31 March 2022 ,compared to 35.83% as of 31 March 2021 . The Board recommended a final dividend @18% (Rs.1.80 per equity share of Rs.10/- each ) for the year FY22 | Loan funds rose to Rs 247.81 crore as of 31 March 2022 from Rs 199.55 crore as of 31 March 2021. Inventories rose to Rs 226.98 crore as of 31 March 2022 from Rs 180.99 crore as of 31 March 2021. Sundry debtors were higher at Rs 218.39 crore as of 31 March 2022 compared to Rs 188.44 crore as of 31 March 2021. Cash and bank balance declined from Rs 13.93 crore as of 31 March 2021 to Rs 11.75 crore as of 31 March 2022. Investments declined from Rs 4.57 crore as of 31 March 2021 to Rs 3.95 crore as of 31 March 2022. Fixed assets increased to Rs 214.16 crore as of 31 March 2022 from Rs 210.74 crore as of 31 March 2021. Intangible assets declined from Rs 11.07 crore to Rs 10.80 crore. | |
|
Cash flow from operating activities has turned negative Rs 12.24 crore for year ended March 2022 from positive Rs 13.78 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 19.56 crore, compared to Rs 18.56 crore during the year ended March 2021.
Management Comments :
Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said:
“The impacts of the third wave of the pandemic are subsiding now, as markets in India and abroad are
recovering from the slowdown. We are witnessing a steady growth in demand and an increasing good
orderbook, from both domestic as well as export markets.
During the fourth quarter of the financial year, we registered a revenue of Rs. 228.02 crores with EBITDA and PAT of Rs. 12.89 crore and Rs. 3.83 crore, respectively. Growth came in primarily from
industrial switchgear products. Continued volatility in raw material prices, substantial freight cost
Increase has offset our price hikes and impacted margins. We are slowly passing on these hikes to our
customers in time. However, going forward, we expect raw material prices to stabilize now and
margins to improve slightly. Moreover, one-time expenses for new product development also dented
margins.
| am happy to share that we recently received two patents — one for integrated cam operated rotary
switches, which is a legacy product contributing substantially to our top line, and another for MPCB.
Such developments help protect our intellectual property and boost our efforts in R&D and product
development.
On another note, our recent joint ventures to enter the electric vehicles space are both on track. We are
excited about this line of business as it is a high growth potential vertical, and we have strong technical
alliances in the form of these JVs to get an early start in the market.
Going into the next fiscal, we expect to maintain our growth trajectory with our strong product
offerings and brand position in the market. Based on domestic and export outlook, we are cautiously
optimistic about the overall business performance.
| thank all our stakeholders for their continued support and faith in our Company and wish everyone
good health.”
| Salzer Electronics : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 238.87 | 195.69 | 22.07 | 803.54 | 625.74 | 28.41 | | OPM (%) | 5.82 | 8.53 | -271 bps | 8.24 | 10.07 | -183 bps | | OP | 13.91 | 16.70 | -16.71 | 66.23 | 63.01 | 5.11 | | Other Inc. | 0.53 | 1.42 | -62.68 | 2.48 | 2.20 | 12.73 | | PBIDT | 14.44 | 18.12 | -20.31 | 68.71 | 65.21 | 5.37 | | Interest | 5.04 | 5.29 | -4.73 | 19.88 | 21.34 | -6.84 | | PBDT | 9.40 | 12.83 | -26.73 | 48.83 | 43.87 | 11.31 | | Depreciation | 4.13 | 4.2 | -1.67 | 16.33 | 16.01 | 2.00 | | PBT | 5.27 | 8.63 | -38.93 | 32.5 | 27.86 | 16.65 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 5.27 | 8.63 | -38.93 | 32.5 | 27.86 | 16.65 | | EO Income | 0 | 0.19 | - | 0 | 0.15 | - | | PBT after EO | 5.27 | 8.82 | -40.25 | 32.5 | 28.01 | 16.03 | | Taxation | 0.7 | 1.47 | -52.38 | 8.3 | 6.63 | 25.19 | | PAT | 4.57 | 7.35 | -37.82 | 24.2 | 21.38 | 13.19 | | Minority Interest (MI) | 1.33 | 0.78 | 70.51 | 1.61 | 0.86 | 87.21 | | Net profit | 3.24 | 6.57 | -50.68 | 22.59 | 20.52 | 10.09 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 3.24 | 6.57 | -50.68 | 22.59 | 20.52 | 10.09 | | EPS (Rs)* | 2.03 | 4.02 | -49.61 | 14.13 | 12.77 | 10.68 | | | * EPS is on current equity of Rs 15.98 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
|