Salzer Electronics Ltd. — Earnings Release 2019

Feb 8, 2019

Media Release

9M FVlB Net Revenue at Rs. 404.7 crore increase of 28% VoV mainly driven by wires 8. cables and bui ding segments

9M FVlB EBITDA at Rs 46.8 crore — VoV growth of 27% -growth across all business segments

9M FVlB Profit After Tax at Rs. 15.6 crore —VoV growth of 3%

Received prestigious lso TS 16949 certif at ⁿ for magnetics and wires & cables businessd ns

Coimbatore, February 5'", 2015: Salzer Electronics Limited last: 517059, NSE: SAthRtLtcl, among leading players offering total and customised electrical solutions, announced is unaudited financial results for the third quarter and nine months ended 31" December 2018. These financials are as per the IND AS accounting guidelines.

Key rinancials (Rs. In Crore):

off excise duty) Revenue (net	143.5	110.7	29.7%	404.7	316.0	25.1%
EBITDA	16.1	13.5	19.4%	46.8	36.9	26.5%
PAT	5.4	5.3	2.0%	15.6	15.2	2.6%

Perlormance Highlights

rcrthe third quarter ended December 31", 2015:

• Net Revenue [net o" excise duty) in Q3 me, Rs. 143.5 crcre as against Rs. 110.7 crore in Q3 FY18, ch growth of 30%
• « Contribution from domestic sales at 54.4% mainly driven by wires is cables and buildingsegments
• Breakup ofrevenue for the Electrical installation Products:
• I industrial Switchgear 440% oi net revenues, Vov increase oi 15.0%, mainly on driven by two products . ³ phase dry type phase transformers and wire harness and despite continued sluggishness in lndian industrial switchgear industry
• ./ Euildings Products 5.5% ⁰⁴ net revenues, increase Di 55.5% VDV on account of increase in focus on the retail segment in lndia for our products
• '/ Wires & Cables 45.1% ⁰⁴ net revenues, VDV increase Di 37.2%. mainly on account of consolidation of Salzer Magnet wires iacnuired in Q4 fuel and increase in demand
• / Energy Management— 1.3% of net revenue

• EEITDA stood at Rs. 15.1 Crnre in Q3 FY19 as against Rs. 13.5 crore in Q3 FY18, VDV growth ol 19%, mainly on account of growth driven across wires is cables and building segment
• q: FV15 EEITDA Margin at 11.2%, YoY decline, on account of change in product mix and increase in raw material prices
• Profit Alter Tax stood at Rs. 5.4 crore

rorthe Nine Months ended December :1", 201a:

• Net Revenue [net on excise duty) in 9M me, Rs. 404.7 crore as against Rs. 315.0 crore in 9M fv18,Vov 25% mainly driven by wires & cables and building segments
• / Contribution from domestic sales at 54.4% mainly driven by increase in demand and good traction for products in Building and industrial Switchgear Segments
• Breakup ofrevenue for the Electrical lnstallation Products:
• ^J Industrial Switchgear 41.5% of net revenues, VDV increase 0' 17.4%, mainly driven by two products . ³ phase dry type phase transformers and wire harness and despite continued sluggishness in lndian industrial switchgear industry
• I Euildings Products - 7.5% 0' net revenues, increase D' 105.5% VDV on account of increase in product offerings and focus on the retail segment in lndia
• I Wires & Cables 45.4% o! net revenues, Vov increase ol 27.7%. mainly on account of consolidation ofSalzer Magnet Wires
• / Energy Management — 2.0% oi net revenue Vov increase oi 104.4%. This is an order book driven business and increase in revenues has been from increase in AMC
• EEITDA stood at Rs. 45.5 Crnre in 9M FY19 as against Rs. 36.9 crore in 9M FY18, VDV growth of 27%, mainly on account of growth ofall business segments
• Profit After Tax was at Rs. 15.5 Crnre in ⁹ M FY19 as against Rs.15.Z crore in 9M FY18, VDV growth of 3%

Management Comment:

Commenting on the results, Mr. Raiesh Doraiswamy, loint Managing Director and Chiei Financial Officer, Salxer Electronics Ltd said:

"This nine rnonths my, we have demonstrated revenue growth of 23% WW, on account of higher contributions from wires & cab/es and building product segrnents, despite a challenging industry scenario and rising cost ofrawmaterl'a/s.

ihroughout the nine rnonths my our products narnely three phase dry type transformers, wire

harness along with our legacy product ofcam operated rotary switches has shown good traction in the industrial switch gears segment and we have been able to increase our sales of Modular Switches, MCB's Distribution Boards, Changeovers, wires 3t Cables which has help us grow in lndia.

We continually focus on adding new high margin products under our product portfolio, reach out newer geographies and offer total customized solutions to our customers. Durfacus also remains on new opportunities for technical associations/acguisition to further strengthen our base of product offerings. ^I

About Salxer Electronics

• Salzer is ^a Leading player offeringTotal and Customized Electrical Solutions in Swilchgears, wires is Cables and Energy Management business. It is the largest manufacturer of CAM Operated Rotary switches is wire Ducts in lndia, with ^a market share of 25% is 20% respectively. The Company caters to ^a wide range of products with four lnrhouse manufacturing facil es, located in Coimbatore
• The Company has ^a wide distribution network locally and globally, exporting to more than many countries. In lndia, Salzer markets its products through its own distributors and more than 350 local distributors ofL&T. The Company has ^a strong R&D team that focuses on developing and commercializing the technologies of the products, and as ^a result, can offer total customized electrical solutions to its customers.

For further information, plane contact:

Mr. aaskarasubramaniam	5mit shah Ms. Sauli MangIe/Mr.
Salzer Electronics Ltd.	Bridge Investor Relations Pvt. Ltd.
laaskarasubramanianwsalzerrauu.cam Em	smitwbrid Emzll:5a\/ i@brid Vincmu Vincmu
wwwsalzerfiaup net	wwwbr am gedr

Caution Concerning Forward- Looking Statements:

This document includes certain foMardr/ookl'rlg statements. These statements are based on management's current expectations orbe/l'efs and aresubject to uncertainty andchanges in circumstances. Actual results may uary materially from those expressed or implied by the statements herein due to changes in economic, business, competitiue, technological and/or regulatory factors. The Company is under no obligation to, and expressly disclaims anysuch obligation to, update or alter its forwardelookingstatements, whetheras ^a result ofrlewl'rlformatl'orl,fumre euents, orotherwise.