Consolidated net sales (including other operating income) of Salzer Electronics for the quarter has increased 12.24% to Rs 245.6 crore. Operating profit margin has jumped from 8.41% to 10.15%, leading to 35.43% rise in operating profit to Rs 24.92 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 79.44% to 76.06%. Employee cost increased from 3.68% to 3.87%. Other expenses rose from 8.90% to 10.12%. Other income fell 25.30% to Rs 0.62 crore. PBIDT rose 32.81% to Rs 25.54 crore. Provision for interest rose 33.13% to Rs 6.67 crore. PBDT rose 32.70% to Rs 18.87 crore. Provision for depreciation rose 4% to Rs 4.16 crore. Profit before tax grew 43.93% to Rs 14.71 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 4.19 crore, compared to Rs 2.57 crore. Effective tax rate was 28.48% compared to 25.15%. Net profit attributable to owners of the company increased 23.33% to Rs 10.31 crore. 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. Management Comments :
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 . Salzer Electronics : Consolidated Results | | Quarter ended | Year to Date | Year ended |
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Particulars | 202212 | 202112 | Var.(%) | 202212 | 202112 | Var.(%) | 202203 | 202103 | Var.(%) |
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Net Sales (including other operating income) | 245.60 | 218.82 | 12.24 | 734.36 | 569.62 | 28.92 | 803.54 | 625.74 | 28.41 | OPM (%) | 10.15 | 8.41 | 174 bps | 9.70 | 9.19 | 51 bps | 8.24 | 10.07 | -183 bps | OP | 24.92 | 18.40 | 35.43 | 71.24 | 52.33 | 36.14 | 66.23 | 63.01 | 5.11 | Other Inc. | 0.62 | 0.83 | -25.30 | 1.37 | 1.95 | -29.74 | 2.48 | 2.20 | 12.73 | PBIDT | 25.54 | 19.23 | 32.81 | 72.61 | 54.28 | 33.77 | 68.71 | 65.21 | 5.37 | Interest | 6.67 | 5.01 | 33.13 | 18.43 | 14.84 | 24.19 | 19.88 | 21.34 | -6.84 | PBDT | 18.87 | 14.22 | 32.70 | 54.18 | 39.44 | 37.37 | 48.83 | 43.87 | 11.31 | Depreciation | 4.16 | 4 | 4.00 | 12.27 | 12.21 | 0.49 | 16.33 | 16.01 | 2.00 | PBT | 14.71 | 10.22 | 43.93 | 41.91 | 27.23 | 53.91 | 32.5 | 27.86 | 16.65 | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | PBT before EO | 14.71 | 10.22 | 43.93 | 41.91 | 27.23 | 53.91 | 32.5 | 27.86 | 16.65 | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0.15 | - | PBT after EO | 14.71 | 10.22 | 43.93 | 41.91 | 27.23 | 53.91 | 32.5 | 28.01 | 16.03 | Taxation | 4.19 | 2.57 | 63.04 | 12.14 | 7.6 | 59.74 | 8.3 | 6.63 | 25.19 | PAT | 10.52 | 7.65 | 37.52 | 29.77 | 19.63 | 51.66 | 24.2 | 21.38 | 13.19 | Minority Interest (MI) | 0.21 | -0.71 | PL | 0.65 | 0.28 | 132.14 | 1.61 | 0.86 | 87.21 | Net profit | 10.31 | 8.36 | 23.33 | 29.12 | 19.35 | 50.49 | 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 | 10.31 | 8.36 | 23.33 | 29.12 | 19.35 | 50.49 | 22.59 | 20.52 | 10.09 | EPS (Rs)* | 6.45 | 5.23 | 23.33 | 18.22 | 12.11 | 50.49 | 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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