Nine month performance

Net sales (including other operating income) of Salzer Electronics has increased 28.92% to Rs 734.36 crore.  Operating profit margin has jumped from 9.19% to 9.70%, leading to 36.14% rise in operating profit to Rs 71.24 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 78.41% to 77.79%.   Employee cost decreased from 4.06% to 3.79%.   Other expenses rose from 8.65% to 8.98%.   Other income fell 29.74% to Rs 1.37 crore.  PBIDT rose 33.77% to Rs 72.61 crore.  Provision for interest rose 24.19% to Rs 18.43 crore.  PBDT rose 37.37% to Rs 54.18 crore.  Provision for depreciation rose 0.49% to Rs 12.27 crore.  Profit before tax grew 53.91% to Rs 41.91 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 12.14 crore, compared to Rs 7.6 crore.  Effective tax rate was 28.97% compared to 27.91%. Minority interest increased 132.14% to Rs 0.65 crore.  Net profit attributable to owners of the company increased 50.49% to Rs 29.12 crore.  

Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said: “Our third quarter performance has been in line with our expectations. Despite, a tepid demand, we witnessed a good traction in our Industrial switchgear and Building products. I am happy to share that we continue to see a substantially higher demand in many key products from these two business divisions. To cater to this strong demand, we recently set up a new manufacturing rented facility strategically located in Hosur, Tamil Nadu to manufacture high demand products like Wire Harnesses and Toroidal Transformers. During the Third quarter and Nine Months year ended of the financial year, we registered a revenue of Rs. 239.95 crores with EBITDA (excluding other income) and PAT of Rs. 23.74 crore and Rs. 9.67 crore, respectively. Our raw material prices have begun to stabilize and we are seeing the benefits of our price hikes in the form of better margins year on year as well as quarter on quarter. We also expect to reduce raw material consumption in coming quarters. 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 the entire team at Salzer Electronics for their untiring efforts and all our stakeholders for their continued support and faith in our Company.” 

Promoters’ stake was 32.34% as of 31 December 2022 ,compared to 32.34% as of 31 December 2021 .