Salzer Electronics Sep Quarter PAT Increases by 44 Per Cent

Salzer Electronics Ltd., a leading manufacturer of rotary switches and wiring ducts in India, announced its un-audited financial results for the quarter ended September 30, 2015.

The company has reported a net profit of Rs 4.62 crore for the quarter ending September 30, 2015; an increase of 44 per cent, as compared to Rs 3.2 crore for the quarter ended September 30, 2014.

The total revenue rose by 19.4 per cent to Rs 80.94 crore for the quarter ended September 30, 2015 from Rs 67.77 crore for the quarter ended September 30, 2014. Exports contributed to 23 per cent of revenues.

The EBITDA growth stood at 21 per cent amounting to Rs 11.5 crore as against Rs 9.5 crore in Q2FY15. This is after adjusting for onetime TDS expense of Rs 46 lakhs on account of Employee Stock Options. Margins recorded 13.38 per cent as against 13.79 per cent YoY.

Breakup of revenue as per business segments:

Industrial Switchgear business – 55 per cent of the total revenues, with YoY growth of 36 per cent, in line with business strategy of focusing on profitable and high growth products

Buildings Products business – 4 per cent, with YoY decline of 9 per cent

Copper business - around 33 per cent, with muted YoY growth of 1 per cent

Energy Management business – 8 per cent, with YoY growth of over 600 per cent

For six months, ending September 30, 2015, the company’s net profit stood at Rs 9.7 crore, rising by 51 per cent Y-o-Y. The company's revenue at Rs 172 crore registered growth of 26 per cent Y-o-Y. Exports contributed to 24 per cent of revenues.

As H1FY16 Balance sheet front, the networth stood at Rs 190 crore as against Rs 107 crore as on March 31, 2015. the total debt was at Rs 101 crore as against Rs 93 crore as on March 31,2015, mainly on account of increase in short term borrowings.

Commenting on the results, Mr. R, Doraiswamy, Joint Managing Director, Salter Electronics ltd said, “The revenues have grown in line with our expectations especially from the more profitable segment of industrial switchgear. The successful raising of funds through the QIP has provided us capital to invest in on-going as well as new projects. We are very positive about our technical alliance with Trafomodern and are in talking with other leading manufacturers to add mare niche products to our suite of offerings."

During the quarter, Salzer raised Rs 62.06 crore of capital successfully through Qualified Institutional Placement (QIP). The Company issued 26.41 lac shares at Rs 235 per share, resulting in dilution of 24 per cent of the capital base. Post issue, book value stood at around Rs 132.73 per share.