Consolidated net sales (including other operating income) of Salzer Electronics for the quarter ended Sep 2023 has increased 14.29% to Rs 280.72 crore. This growth was driven by higher demand for Industrial switchgear as well as wires and cable businesses
mainly due to high demand products like three phase transformers, wire harness, relays and new product
like contactors etc.Operating profit margin has declined from 10.44% to 9.54%, leading to 4.49% rise in operating profit to Rs 26.79 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 76.63% to 75.58%. Employee cost increased from 3.89% to 4.00%. Other expenses rose from 9.29% to 10.17%. PBIDT rose 7.63% to Rs 27.08 crore. Provision for interest rose 35.50% to Rs 8.32 crore. PBDT fell 1.37% to Rs 18.76 crore. Provision for depreciation rose 26.16% to Rs 5.16 crore. Profit before tax down 8.91% to Rs 13.60 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 3.5 crore, compared to Rs 5.32 crore. Effective tax rate was 25.74% compared to 35.63%. Minority interest increased 18.18% to Rs 0.26 crore. Net profit attributable to owners of the company increased 4.79% to Rs 9.84 crore. For year-to-date (YTD) results analysis. Net sales (including other operating income) of Salzer Electronics for the half year ended Sep 2023 has increased 16.50% to Rs 569.4 crore. Operating profit margin has declined from 9.48% to 9.29%, leading to 14.16% rise in operating profit to Rs 52.89 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 78.65% to 77.17%. Employee cost increased from 3.75% to 3.80%. Other expenses rose from 8.42% to 9.70%. Other income rose 36% to Rs 1.02 crore. PBIDT rose 14.51% to Rs 53.91 crore. Provision for interest rose 38.66% to Rs 16.32 crore. PBDT rose 6.46% to Rs 37.59 crore. Provision for depreciation rose 21.09% to Rs 9.82 crore. Profit before tax grew 2.10% to Rs 27.77 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 7.5 crore, compared to Rs 7.95 crore. Effective tax rate was 27.01% compared to 29.23%.Minority interest increased 11.36% to Rs 0.49 crore. Net profit attributable to owners of the company increased 5.16% to Rs 19.78 crore. Management Comments :
Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said: “During the Second quarter of the financial year, we registered a consolidated revenue of Rs. 280.72 crores with EBITDA (excluding other income) and PAT of Rs. 26.79 crore and Rs. 10.10 crore, respectively. Overall market has been bit slow due to international geopolitical uncertainty, high oil prices etc. Despite we have seen growth coming in from Industrial switchgear and wires and cable businesses especially in high demand products like three phase transformers, Wire harness, relays and new products like contactors etc. Our revenues from exports were largely from Asia, North & South America, Middle East / Africa as well as Europe. We have seen positive trend in decreasing raw material cost, expect this to continue which helped to improve our EBITDA Margins. We are focusing on maintaining a balanced business mix between industrial switchgear and wires & cables products to manage overall gross margin percentage. On the EV front, we completed the developmental activities for DC Fast charger, and we are taking steps to roll out the product in the current fiscal after securing clearances from the regulatory bodies. We have recently developed lot of new products for a new segment HVAC (Heating, Ventilation, and Air Conditioning). This segment comprises products like Definite purpose contactor, AC disconnect Switches and Whips and disconnects. These products are being used in both domestic and Industrial AC systems. We strive to maintain this growth trajectory to set our eyes on new summits of achievement. At Salzer, innovation is in our manifesto, and our strong product offerings and brand position in the market has placed us in a position to achieve new benchmarks for the future. 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.” Others Equity capital increased from Rs 15.98 crore as of 30 September 2022 to Rs 16.68 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00. Promoters’ stake was 35.13% as of 30 September 2023 ,compared to 32.34% as of 30 September 2022 . Loan funds rose to Rs 292.13 crore as of 30 September 2023 from Rs 244.18 crore as of 30 September 2022. Inventories rose to Rs 279.96 crore as of 30 September 2023 from Rs 246.15 crore as of 30 September 2022. Sundry debtors were higher at Rs 317.82 crore as of 30 September 2023 compared to Rs 224.84 crore as of 30 September 2022. Cash and bank balance declined from Rs 14.57 crore as of 30 September 2022 to Rs 8.58 crore as of 30 September 2023. Investments rose to Rs 6.74 crore as of 30 September 2023 from Rs 4.33 crore as of 30 September 2022 . Fixed assets increased to Rs 243.12 crore as of 30 September 2023 from Rs 218.79 crore as of 30 September 2022. Intangible assets declined from Rs 10.87 crore to Rs 10.47 crore.
Salzer Electronics : Consolidated Results | | Quarter ended | Year to Date | Year ended |
---|
Particulars | 202309 | 202209 | Var.(%) | 202309 | 202209 | Var.(%) | 202303 | 202203 | Var.(%) |
---|
Net Sales (including other operating income) | 280.72 | 245.62 | 14.29 | 569.40 | 488.76 | 16.50 | 1,037.09 | 803.54 | 29.07 | OPM (%) | 9.54 | 10.44 | -90 bps | 9.29 | 9.48 | -19 bps | 9.25 | 8.24 | 101 bps | OP | 26.79 | 25.64 | 4.49 | 52.89 | 46.33 | 14.16 | 95.92 | 66.23 | 44.83 | Other Inc. | 0.29 | -0.48 | LP | 1.02 | 0.75 | 36.00 | 1.70 | 2.48 | -31.45 | PBIDT | 27.08 | 25.16 | 7.63 | 53.91 | 47.08 | 14.51 | 97.62 | 68.71 | 42.08 | Interest | 8.32 | 6.14 | 35.50 | 16.32 | 11.77 | 38.66 | 26.12 | 19.88 | 31.39 | PBDT | 18.76 | 19.02 | -1.37 | 37.59 | 35.31 | 6.46 | 71.50 | 48.83 | 46.43 | Depreciation | 5.16 | 4.09 | 26.16 | 9.82 | 8.11 | 21.09 | 16.6 | 16.33 | 1.65 | PBT | 13.60 | 14.93 | -8.91 | 27.77 | 27.2 | 2.10 | 54.9 | 32.5 | 68.92 | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | PBT before EO | 13.6 | 14.93 | -8.91 | 27.77 | 27.2 | 2.10 | 54.9 | 32.5 | 68.92 | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | PBT after EO | 13.6 | 14.93 | -8.91 | 27.77 | 27.2 | 2.10 | 54.9 | 32.5 | 68.92 | Taxation | 3.5 | 5.32 | -34.21 | 7.5 | 7.95 | -5.66 | 15.28 | 8.3 | 84.10 | PAT | 10.1 | 9.61 | 5.10 | 20.27 | 19.25 | 5.30 | 39.62 | 24.2 | 63.72 | Minority Interest (MI) | 0.26 | 0.22 | 18.18 | 0.49 | 0.44 | 11.36 | 0.91 | 1.61 | -43.48 | Net profit | 9.84 | 9.39 | 4.79 | 19.78 | 18.81 | 5.16 | 38.71 | 22.59 | 71.36 | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | Net profit after discontinued operations | 9.84 | 9.39 | 4.79 | 19.78 | 18.81 | 5.16 | 38.71 | 22.59 | 71.36 | EPS (Rs)* | 5.90 | 5.63 | 4.79 | 11.86 | 11.28 | 5.16 | 23.20 | 13.54 | 71.36 | | * EPS is on current equity of Rs 16.68 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 |
|
|