Salzer Electronics Ltd. — Earnings Release 2025

Nov 11, 2024

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Salzer Electronics Limited
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F:\My Documents\S E L\EXCH\SEBI(LODR)

11[th] Nov, 2024

To

THE CORPORATE RELATIONSHIP DEPT M/s. BSE Limited I Floor, New Trading Ring, Rotunda Building, P. J. Towers, Dalal Street, Fort, Mumbai - 400 001.

M/s. NATIONAL STOCK EXCHANGE OF INDIA LTD., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Tel: +91 22 26598235/36, 26598346 Fax: +91 22 26598237/38

SCRIP CODE: 517059 Symbol : SALZERELEC

Dear Sir,

Sub: Intimation under Regulation 30 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”)

Pursuant to Regulation 30 of the SEBI Listing Regulations, please find attached a press release on the unaudited Financial Results of the Company for the quarter and Half year ended 30[th] September 2024.

The above is for your information, records and dissemination please.

Thanking you

Yours Faithfully

For SALZER ELECTRONICS LTD

Digitally signed by MURUGESAN.K.M. DN: c=IN, o=PERSONAL, title=8272, MURUGE pseudonym=4b2621fcc885457194474f6d5524c430, 2.5.4.20=a369294025c3a56c86574833907f53d 9b69f56549fdc8b700d76a17c2be971dc, postalCode=638183, st=Tamil Nadu, serialNumber=705e9c401400bba14f9a2afe5a2 SAN.K.M. eb2009dcbf720c6386f94bb32260013d24288, cn=MURUGESAN.K.M. Date: 2024.11.11 20:38:28 +05'30'

K M MURUGESAN COMPANY SECRETARY & COMPLIANCE OFFICER

(ACS: 25953)

PRESS RELEASE

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Salzer Electronics continues to demonstrate robust performance in the Second Quarter and Half Year ended as on 30[th] September, 2024

• 22.6% YoY growth in consolidated quarterly revenues - driven by in 34% YoY growth in Industrial Switchgear and 10% YoY growth in Wires & Cables

• Q2 FY25 EBITDA (excluding other income) at Rs. 35.3 crore – YoY growth of 31.8%

• Q2 FY25 EBITDA Margin at 10.2% with margin growth of 72 bps

• Q2 FY25 PAT at Rs. 27.2 crore - YoY growth of 170.1%

• Received First Small order for Rs 5 cr for Smart Meter

Particulars (Rs. Cr)			Consolidated	Consolidated
	Q2 FY25	Q2 FY24	YoY	H1 FY25	H1 FY24	YoY
Net Revenue	344.23	280.72	22.62%	701.14	569.40	23.14%
EBITDA(excludingother income)	35.31	26.79	31.79%	68.76	52.87	30.05%
EBITDA Margin	10.26%	9.54%	72 bps	9.81%	9.29%	52 bps
PAT	27.28	10.10	170.10%	42.03	20.27	107.39%
PAT Margin	7.92%	3.60%	432 bps	5.99%	3.56%	243 bps
Basic EPS(Rs.)	15.43	5.99	157.60%	23.90	12.05	98.34%

Coimbatore, 11[th] November, 2024: Salzer Electronics Limited (BSE: 517059, NSE: SALZERELEC), a capital goods engineering Company offering total and customised electrical solutions, announced its unaudited financial results for the second quarter and half year ended 30[th] September 2024.

Consolidated Financial Performance Highlights

For the Quarter ended September 30[th] , 2024:

• Net Revenue in Q2 FY25 was Rs. 344.23 crore as against Rs. 280.72 crore in Q2 FY24, YoY growth of 22.62%. This growth was mainly 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.

• ✓ Contribution from Exports at 29.15%, export revenue grew 3.1% YoY in Q2 FY25, driven by higher sales from North and South America, Middle East and Africa and Asian countries.

• EBITDA (excluding other income) was Rs. 35.31 crore in Q2 FY25 as against Rs.26.79 crore in Q2 FY24, YoY growth of 31.79% on account of increased sales in the higher margin Switchgear products

• EBITDA Margin for the quarter stood at 10.26%, rise of 72 bps

• Profit After Tax at Rs. 27.28 crore in Q2 FY25 as against Rs. 10.10 crore in Q2 FY24, YoY growth of 170.10%

For the half year ended September 30[th] , 2024:

• Net Revenue in H1 FY25 was Rs. 701.14 crore as against Rs. 569.40 crore in H1 FY24, YoY growth of

• 23.14%, driven by business of Industrial switchgear and wire & cable business

• EBITDA (excluding other income) was Rs. 68.76 crore in H1 FY25 as against Rs. 52.87 crore in H1 FY24, YoY growth of 30.05% , mainly on account of higher sales in high demand products like wire harness, relays and contactors etc.

• EBITDA Margin for the quarter stood at 9.81%, rise of 52 bps

• Profit After Tax at Rs. 42.03 crore in H1 FY25 as against Rs. 20.27 crore in H1 FY24, YoY growth of 107.39%

• PAT Margin stood at 5.99% in H1 FY25

Q2 FY25 performance highlights of the key businesses of Salzer Electronics Limited:

Industrial Switch Gear Division:

• Industrial Switchgear business division comprises of Low voltage products such as Toroidal Transformers, Three phase transformers, Rotary Switches, Isolators, General Purpose relays, Wire Harness, Wiring Ducts, MPCB’s, Contactors & OLR’s, Control Panels, Terminal Blocks, and Sensors. This division offers around 15 products that are all internationally certified

• This business grew 34.4% YoY and contributed 61.6% to the total revenues in this quarter and grew 26.6% YoY in H1 FY25, contributed 56.6% to the total revenues in the half year ended.

• The EBIDTA Margin in this business was 12.5% in Q2 FY25 and 12.7% in H1 FY25

Wire & Cables Division:

• Wires & Cables business division comprises of LOW-voltage products such as Wires & Cables, Flexible Bus Bars, Enamelled Wires, Bunched Conductors and Tinned Copper Wires

• This business division contributed 33.5% to the total revenues this quarter and 38.5% in H1 FY25. This division grew 10.2% YoY in Q2 FY25 and 21.4% YoY in H1 FY25.

• This Division’s EBIDTA Margin stood at 6.9% in Q2 FY25 and 6.0% in H1 FY25.

Building Products Division:

• Building Electrical Products division comprises of products such as Modular Switches, Wires & Cables, MCB’s Distribution Boards and Changeovers.

• This division contributed 4.9% to the total revenue in this quarter and 4.9% in H1 FY25.

Management Comment:

Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said:

“During the Second quarter of the financial year, we registered a strong consolidated revenue of Rs. 344.23 crores with EBITDA (excluding other income) and PAT of Rs. 35.31 crore and Rs. 27.28 crore, respectively. This growth was mainly driven by the higher margin switchgear business that led to margin improvement. This growth also is significant, as we are seeing a slight slowdown in the growth in India amidst global uncertanity.

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 our overall margins.

I am pleased to announce that we have received our first order for smart meters. This achievement is a testament to our team's dedication to advancing smart metering technology. Our solution has garnered significant interest, with evaluations currently underway by at least six additional AMISPs across India. We are in advanced discussions with these partners and are optimistic about securing further orders. This momentum reinforces our commitment to supporting India's digital transformation in energy management through cutting-edge smart meter technology."

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.”

About Salzer Electronics Limited

• 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 Operated Rotary switches & Wire Ducts in India. The Company caters to a wide range of products with four in-house manufacturing facilities, located in Coimbatore.

• The Company has a wide distribution network locally and globally, exporting to many countries.

• In India, Salzer markets its products through its own distributors and more than 350 local distributors of L&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, please contact:

Mr. Murugesh	Ms. Savli Mangle / Mr. Rupesh Rege
Salzer Electronics Ltd.	AdfactorsPR Pvt. Ltd.
Email: murugesan@salzergroup.com	Email:savli.mangle@adfactorspr.com Rupesh.rege@adfactorspr.com
www.salzergroup.net	https://www.adfactorspr.com/

Caution Concerning Forward- Looking Statements:

This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.