Salzer manufactures Load Break Switches, Wiring Ducts, Terminal Connectors, Selector Switches, Ammeter Switches, Voltmeter Switches, DC Disconnectors, Electro Magnetic Relays and Magnetic Wires besides Modular Wiring Accessories and Allied Specialty Products.

With international approval and innovative designs the company's market share for these products is continuously growing.

The company has also entered into collaboration with M/s. Plitron Manufacturing Inc., Canada(Leading Manufacturing of Transformers in North America), in 1995 for manufacturing Toroidal Transformers with 50% Buy-Back.

Today, it is market leader in India for Rotary Switches, PV Application Switches & PVC Wiring Ducts (channels) and provides complete customized electrical solutions.

The company has one patent for its rotary switch and five products are awaiting patent.

March 2017 quarter results

For the quarter ended March 2017, sales grew 13% to Rs 111.96 crore. OPM fell 20 basis points to 9.5% which saw OP grow 10% to Rs 10.67 crore.

Other income jumped 40% to Rs 2.71 crore and interest cost jumped 29% to Rs 4.07 crore. As depreciation jumped 17% to Rs 2.53 crore, PBT grew 8% to Rs 6.78 crore.

As tax provision jumped 37% to Rs 3.22 crore (tax incidence grew from 37.4% to 47.4%), PAT fell 9% to Rs 3.57 crore.

FY 2017 results

For FY 2017, sales grew 6% to Rs 384.063 crore. OPM fell 80 basis points to 11.1% which saw OP fall 1% to Rs 42.47 crore.

Other income jumped 157% to Rs 7.20 crore and interest cost grew 11% to Rs 14.59 crore. As depreciation jumped 18% to Rs 9.80 crore, PBT grew 4% to Rs 25.28 crore.

As tax provision grew 14% to Rs 8.18 crore (tax incidence grew from 29.7% to 32.4%), PAT remained unchanged at Rs 17.09 crore.

Enjoys strong positioning

The company is established player in the switch gear industry for the manufacture of CAM Operated Rotary Switches with Latest technology at international standards mainly for industrial purpose and has the facilities of taking the multiple outputs as well as sequence with various programs in all capacities from 6 Amps to 400 Amps.

The company's products are well received in the International and Local Markets and all leading OEMs including public sector undertaking are using standardized Salzer switches.

The company is progressing well and is now planning to improve the quality further to superior standards to expand the export markets.

Valuation

The share price trades at Rs 193.