Salzer Electronics Ltd. — Annual Report 2019

May 24, 2019

Media Release

Fv19 Net Revenue at Rs. 559.9 crore demonstrated over 25% Vov growth driven by all three key businesses of industrial Switch Gears, Buil rng segment and Wires 8c cables

Fv19 EBITDA at Rs. 55.5 crore —VoV growth of 19% -growth across all business segments

Profit After Tax at Rs. 24.0 crore — VoV growth of 20%

Received prestigious ISO TS 16949 certification for wires & cables ^d '1

Board Recommends Final Dividend at Rs. 1.50 per Equity share subject to approval of shareholders

Coimbatore, May 2A", 2019: Salzer Electronics Limited (ESE: 517059, NSE: SALZERELEC), among leading players offering total and customised electrical solutions, announced ie audited financial results for the fourth quarter and full year ended 31" March 2019. These financials are as per the IND ASaccounling guidelines.

Key Financial: (Rr. ln Crore):

off excise duty) Revenue (net	155.0	125.8	22.5%	559.8	442.8	26.4%
EBITDA	15.9	15.4	2.9%	53.5	53.3	19.5%
PAT	8.4	4.9	75.0%	24.0	20.0	19.7%
basic EPS (Rs.)	5.28	3.18	66.0%	15.21	13.82	10.1%

performance Highlightr

Forthelounh quarter ended March ^{5155 201} -

• Net Revenue (net ollexcire duty) in 04 FY19, Rs. 155.0 crore as against Rs. 125.8 crore in 04 m8. Vov growth of 22.5%, mainly driven by all three key businesses of industrial Switch Gears. building segment and Wires 8 cables
• / Contribution from domertic raler war 90.5%, mainly driven by all business segments
• breakup of revenuefor the Electrical lnstallation Products:
• / lndurtrial Switchgear—40.2% of net revenuer, Vov increare of 5.9%
• I Wirer & Cabler 49.9% of net revenue, Vov increile of 9.7%, mainly on account increase in demand and new product offerings
• I Buildingr Produm — 5.9% of net revenuer, increile of 72.1% Vov on account of increase in focus on the retail segment in lndia for our products as well as new products added in this segment

• / Energy Management — 4.1% of net revenue order book driven business; revenue incurred from AMC charges for the past orders aecuted
• EBITDA :tood at R1. 16.9 orore in Q4 W19 as against Rs.16.4 Crore in Q4 FY18, Vov growth or 2.5%
• Q4 l=v19 EBITDA Margin at 10.9%, VoV decline, on account of change in product mix and increase in raw material prices
• Profit Alterrax nood at Rx. 5.4 orore

Forthelull year ended March 515', 2019:

• Net Revenue [net on exoiie duty) in FY19, Rs. 559.5 crore as against Rs. 442.8 crore in FY18, Vov 25.4% mainly driven by all three key businesses of industrial Switch Gears, Building segment and Wires 8 cahles
• / Contrihutionfrom dementic :ale: wa: 55.1%, driven By all Business segmene
• Breakup of revenuefor the Electrical installation Products:
• / Indultriil Switchgear — 41.4% of net revenue:, Vov increile of 15.5%, mainly driven by produce . three phase dry type phase transformers and wire harness
• / Wire: ⁵ Cable: —45.5% of net revenue1,VnVincreile of 21.5%, mainly on account of consolidation of SalzerMagnetWires and increase of new product offerings
• I Building: Product: - 7.6% 0' net revenue], increile D' 97.9% VDV on account of increase in new product offerings and focus on sales promotional activity to create awareness for products in the retail segmentin india
• / Energy Management — 2.5% of net revenue, Vov increile of 192%. This is an order book driven business and the increase in revenue was from AMC for past orders aecuted
• EBITDA need it RI. 63.6 crore in W19 as against Rs. 53.3 crore in W18, VDV growth 0' 19.5%, mainly on account of growth of all Business segments
• Profit ARerTix win at RI. 24.0 orore in FY19 as against Rs. 20.0 Crore in Fv18, Vov growth or 15.7%

The Board of Directors has recommended, subject to shareholders' approval, ^a final dividend Rs. 1.50 per equity share of Rs. 10 eachforthe financial year ended March 315*, 2019.

Key Development: during the year:

• During the year promoters of the Company increased their stake in the Company to 35% from 34% in FY18
• CRISIL upgraded the credit ratings of the Company. The credit ratings have heen upgraded to 'CRISIL A/Stahle' from 'CRISIL ^A V/Positive' for long term borrowings and 'CRISILAT reaffirmed for short term horrowings reflecting ^a leading market position in domestic rotary switches market and an adequate financial risk profile

• Received prestigious lS0 TS ¹⁵⁹⁴⁹ certification for both Magnetic Wire and the cables division. This certification is prepared by the international Automotive Task Force and the Japan Automobile Manufacturers Association, with support from lS0. This Technical Spec ication, in conjunction with lS0 9001:2000, defines the quality management system requirements for the design and development production and, when relevant, installation and service of automotivearelated products

Management Comment:

Commenting on the retultt, Mr. Rijelh Dnriilwamy, loint Managing Director and Chief Financial Officer, Salter Elenrnniu Ltd raid:

"l am happy to share that during thefinancial year we have once again demonstrated ^a good growth in our revenues of over 25% WW, despite the continued sluggish in the electrical industry in lndia. This growth was mainly driven by all our three key business segments of industrial Switchgear, Wires & cables and Bulldl'ngsegmenrs.

Durl'ng the year our building segment has almost doubled on the back of increased product offerings combined with ourfocus on retail segment in the indian markets. We also received our first pilot order from Wlm/R in Austria, ^a world leader in elevator door manufacturing and we are in process of executing the order.

our focus will always remain on adding new high margin products, reach out different markets with customized product and solutions in order to add newer clients and grow our business. We are constantly looking for new opportuni es for technical associations to strengthen our base ofproduct offerings.~

About Siller Electronic:

• Salzer is ^a Leading player offering Total and Customized Electrical Solutions in Switchgears, Wires & Cables and Energy Management business. it is the largest manufacturer of CAM 0perated Rotary switches & Wire Ducts in lndia. The Company caters to ^a wide range of products with four inshouse manufacturingfacilities, located in Coimbatore
• The Company has ^a wide distribution network locally and globalty, exporting to many countries. in lndia, Salzer markets is products through is own distributors and more than ³⁵⁰ local distributors of L&T. The Company has ^a strong R&D team thatfocuses on developing and commercializing the technologies of the products, and as ^a result can offer total customized electrical Solutions to its Customers.

For lunher inlortnnion, plane comm:

Mr. Bilkiriluhriminiim	M1. 5:in Mr. 5mit Shah Mingle]
Salter Electronic: Ltd.	Bridge Inventor Relninm Pvt. Ltd.
Ema . haskarasuhramaniantmsalzereraua.cam	.savlitmhridee .com smitwhridee .com Em
mmsalzergmugnet	www bridge Ir com

Caution Concerning Forward- Looking Statements:

rnrs document rna/aaes centarn forwardr/ookr'ng statements. These statements are aasea an management's current expectatrans orbe/r'efs ana aresubject ta anaenarnty anaananaes rn arnaamstanaes. Actual results may vary maten-auy from tnase expressed or rmp/rea by tne statements netern aae ta ananaes rn eaanamra, aasrness, aampetrtrve, teanna/aaraa/ and/or regu/amry factorx. rne Company rs under na aa/raatran ta, ana express/y disc/aims anysaan aa/raatran ta, update or char rts forwardr/ookr'ngstatements, Wnetnet as ^a tesa/t ofnewr'nforman'on,fumre events, atatnenarse.