Capitaline

Results 12-Nov-22

Analysis

Salzer Electronics

Sales up 23%, net up 19%

Consolidated net sales (including other operating income) of Salzer Electronics for the quarter ended Sep 2022 has increased 22.80% to Rs 245.62 crore. Operating profit margin has jumped from 9.54% to 10.44%, leading to 34.31% rise in operating profit to Rs 25.64 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 77.75% to 76.63%. Employee cost decreased from 4.08% to 3.89%. Other expenses rose from 8.45% to 9.29%. PBIDT rose 25.93% to Rs 25.16 crore. Provision for interest rose 30.64% to Rs 6.14 crore. PBDT rose 24.48% to Rs 19.02 crore. Provision for depreciation fell 1.68% to Rs 4.09 crore. Profit before tax grew 34.26% to Rs 14.93 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 5.32 crore, compared to Rs 3.09 crore. Effective tax rate was 35.63% compared to 27.79%. Minority interest increased 57.14% to Rs 0.22 crore. Net profit attributable to owners of the company increased 19.01% to Rs 9.39 crore.

Half yearly performance

Net sales has increased 38.60% to Rs 488.76 crore. Operating profit margin has declined from 9.62% to 9.48%, leading to 36.51% rise in operating profit to Rs 46.33 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 77.92% to 78.65%. Employee cost decreased from 4.28% to 3.75%. Other expenses fell from 8.43% to 8.42%. Other income fell 33.04% to Rs 0.75 crore. PBIDT rose 34.28% to Rs 47.08 crore. Provision for interest rose 19.61% to Rs 11.77 crore. PBDT rose 40.01% to Rs 35.31 crore. Provision for depreciation fell 1.22% to Rs 8.11 crore. Profit before tax grew 59.91% to Rs 27.20 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 7.95 crore, compared to Rs 5.03 crore. Effective tax rate was 29.23% compared to 29.57%. Minority interest decreased 55.56% to Rs 0.44 crore. Net profit attributable to owners of the company increased 71.16% to Rs 18.81 crore.

Equity capital stood at Rs 15.98 crore as of 30 September 2022 to Rs 15.98 crore as of 30 September 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 32.34% as of 30 September 2022 ,compared to 32.38% as of 30 September 2021 .

Loan funds rose to Rs 244.18 crore as of 30 September 2022 from Rs 228.20 crore as of 30 September 2021. Inventories rose to Rs 246.15 crore as of 30 September 2022 from Rs 203.40 crore as of 30 September 2021. Sundry debtors were higher at Rs 224.84 crore as of 30 September 2022 compared to Rs 188.97 crore as of 30 September 2021. Cash and bank balance rose to Rs 14.57 crore as of 30 September 2022 from Rs 12.00 crore as of 30 September 2021. Investments rose to Rs 4.33 crore as of 30 September 2022 from Rs 3.49 crore as of 30 September 2021 . Fixed assets increased to Rs 218.79 crore as of 30 September 2022 from Rs 211.21 crore as of 30 September 2021. Intangible assets declined from Rs 10.95 crore to Rs 10.87 crore.

Management Comments :
Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said: “Our second quarter performance has been in line with our expectations. We have been seeing a good growth coming in from Industrial switchgear and Building products businesses. We are witnessing substantially higher demand in many key products from these two businesses.During the Second quarter and half year ended of the financial year, we registered a revenue of Rs. 244.96 crores with EBITDA (excluding other income) and PAT of Rs. 24.48 crore and Rs. 8.95 crore, respectively. This growth came in primarily from industrial switchgear products as well as Building Products businesses especially in high demand products like Toroidal Transformers, Three phase Transformers, LAN Cables, Sensors, & MCB’s. I am happy to share that there is a strong demand especially for our 3-phase dry type transformers, particularly from the sectors of renewables and machine tools, as this product is getting very well accepted in the market and orders have started flow in. Our raw material prices have begun to stabilize and we are seeing the benefits of our price hikes in the form of better margins quarter on quarter. We also expect to reduce raw material consumption in coming quarters. We recently received two patents for duration of 20 years – 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. Going ahead, we expect to maintain our growth trajectory combined with strong product offerings and brand position in the market. Based on the domestic and export outlook, we are optimistic on our overall business performance. I 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 to Date			Year ended
Particulars	202209	202109	Var.(%)	202209	202109	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	245.62	200.02	22.80	488.76	352.65	38.60	803.54	625.74	28.41
OPM (%)	10.44	9.54	89 bps	9.48	9.62	-15 bps	8.24	10.07	-183 bps
OP	25.64	19.09	34.31	46.33	33.94	36.51	66.23	63.01	5.11
Other Inc.	-0.48	0.89	PL	0.75	1.12	-33.04	2.48	2.20	12.73
PBIDT	25.16	19.98	25.93	47.08	35.06	34.28	68.71	65.21	5.37
Interest	6.14	4.70	30.64	11.77	9.84	19.61	19.88	21.34	-6.84
PBDT	19.02	15.28	24.48	35.31	25.22	40.01	48.83	43.87	11.31
Depreciation	4.09	4.16	-1.68	8.11	8.21	-1.22	16.33	16.01	2.00
PBT	14.93	11.12	34.26	27.2	17.01	59.91	32.5	27.86	16.65
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	14.93	11.12	34.26	27.2	17.01	59.91	32.5	27.86	16.65
EO Income	0	0	-	0	0	-	0	0.15	-
PBT after EO	14.93	11.12	34.26	27.2	17.01	59.91	32.5	28.01	16.03
Taxation	5.32	3.09	72.17	7.95	5.03	58.05	8.3	6.63	25.19
PAT	9.61	8.03	19.68	19.25	11.98	60.68	24.2	21.38	13.19
Minority Interest (MI)	0.22	0.14	57.14	0.44	0.99	-55.56	1.61	0.86	87.21
Net profit	9.39	7.89	19.01	18.81	10.99	71.16	22.59	20.52	10.09
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	9.39	7.89	19.01	18.81	10.99	71.16	22.59	20.52	10.09
EPS (Rs)*	5.88	4.94	19.01	11.77	6.88	71.16	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

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