Salzer Electronics Ltd. — Interim / Quarterly Report 2024

Nov 6, 2023

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SALZER ELECTRONICS LTD

Regd. Office : Samichettipalayam, Jothipuram (Post) Coimbatore -641 047. CIN : L03210TZ1985PLC001535 Phone No.0422-4233600/ 614/696 E-Mail : baskarasubramanian@salzergroup.com web site : https://www.salzergroup.net/

November 6, 2023

To

THE CORPORATE RELATIONSHIP DEPT M/s. National Stock Exchange of India Ltd., BSE Limited Exchange Plaza, C-1, Block G, I Floor, New Trading Ring, BandraKurla Complex, Rotunda Building, Bandra (E),Mumbai – 400 051 P.J.Towers, Dalal Street, Tel :+91 22 26598235/36, 26598346 Fort, Mumbai - 400 001. Fax : +91 22 26598237/38

SCRIP CODE: 517059 Symbol: SALZERELEC

Dear Sir,

• Sub: Audio recording of Earnings Call for the Financial Results of the fourth quarter / year ended September 30, 2023

• Ref.: Reg. 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

We wish to inform you that the audio recording of the Earnings Call hosted by the company for the Financial Results of the second quarter / six months ended September 30, 2023, has been made available on the Company’s website at the following link, within the timeline prescribed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

https://www.salzergroup.net/audio/EQB02202305251471932.mp3

You are requested to take the same on record and acknowledge the receipt.

Thanking you

Yours faithfully

For SALZER ELECTRONICS LTD

MURUGESAN.K.M. Digitally signed by MURUGESAN.K.M. DN: c=IN, o=PERSONAL, title=8272, pseudonym=ed63cadbfe8a440c9b12ca9166db748c, 2.5.4.20=a369294025c3a56c86574833907f53d9b69f56549fdc8b700d76a17c2be971dc, postalCode=638183, st=Tamil Nadu, serialNumber=705e9c401400bba14f9a2afe5a2eb2009dcbf720c6386f94bb32260013d24288, cn=MURUGESAN.K.M. Date: 2023.11.06 15:17:04 +05'30'

K M MURUGESAN COMPANY SECRETARY

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Salzer Electronics Ltd

Progressive Share Brokers Private Limited cordially invites you to the

Earnings Conference Call of Salzer Electronics Ltd

To discuss the operational and financial performance for Q2 & H1FY24

Day/Date: Monday, 6[th] November 2023 Time: 11:30 AM

Diamond pass entry: Registration Link

Access Numbers	Access Numbers
Universal Dial in	+91 22 6280 1205
	+91 22 7115 8258
HongKong	800 964 448
Singapore	800 101 2045
UK	0808101 1573
USA	18667462133

Participants:

Mr. D Rajesh Kumar (Joint Managing Director)

Salzer Electronics Ltd

We look forward to your participation

RSVP:

Rupesh Rege from Adfactors IR (+91 9594918891) Rohit Ohri from Progressive Shares (+91 22 40777500)

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Salzer Electronics Limited

~~Result Updat~~ e Presentation Q2 & H1 FY24

1

Disclaimer

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This presentation has been prepared by Salzer Electronics Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

2

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Table of Contents

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3

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Financial Highlights

4

Joint Managing Director’s Message

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“During the Second quarter of the financial year, we registered a consolidated revenue of Rs. 280.72 crores with EBITDA (excluding other income) and PAT of Rs. 26.79 crore and Rs. 10.10 crore, respectively. Overall market has been bit slow due to international geopolitical uncertainty, high oil prices etc. Despite we have seen growth coming in from Industrial switchgear and wires and cable businesses especially in high demand products like three phase transformers, Wire harness, relays and new products like contactors etc. Our revenues from exports were largely from Asia, North & South America, Middle East / Africa as well as Europe.

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 overall gross margin percentage.

On the EV front, we completed the developmental activities for DC Fast charger, and we are taking steps to roll out the product in the current fiscal after securing clearances from the regulatory bodies.

We have recently developed lot of new products for a new segment HVAC (Heating, Ventilation, and Air Conditioning). This segment comprises products like Definite purpose contactor, AC disconnect Switches and Whips and disconnects. These products are being used in both domestic and Industrial AC systems.

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

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.”

5

Key Consolidated Financial Highlights – Quarterly

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Revenue, EBITDA (excluding other income), PAT (Rs. Crore)

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350 Revenue EBITDA PAT 40.0
302.7
288.7 35.0
300 280.7
245.6 245.6 30.0
250 238.9 237.9 26.8
26.1
25.6
218.8 24.9 24.7
200.0 25.0
200 20.7
19.1
18.4 20.0
150
13.9
15.0
100 9.6 9.6 10.5 9.9 10.2 10.1
8.0 7.7 10.0
4.6
50
5.0
0 0.0
Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
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6

Q2 FY24 Revenue Breakup – Business Verticals

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Q2 FY23

Q2 FY24

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Industrial Switchgear,
57.61%
Wire & Cable,
Building Segment,
34.15%
8.25%
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Industrial Switchgear,
56.4%
Building Segment,
Wire & Cable,
6.1%
37.5%
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• Industrial Switchgear – 56.44% of net revenues

• Wires & Cables – 37.46% of net revenues

• Building Electrical Products – 6.10% of net revenues

7

Q2 FY24 Revenue Breakup – Geographical

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Q2 FY23

Q2 FY24

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Asia (Exclu.
Middle East, 1.1%
India), 10.2%
North & South
America, 6.0%
Europe, 8.1%,
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North & South Middle East; 1.8%
America, 11.1%
Asia (Exclu.
India), 11.0%
Europe,
10.9%
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India, 65.2%
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India, 74.6%
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 Contribution from Exports at 34.8%

• Export revenue driven by higher exports to Middle East, North & South America, Europe and Asian countries

8

Q2 FY24 Consolidated Financial Highlights

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Rs. in Crore	Q2 FY24	Q2 FY23	Y-o-Y %	Q1 FY24
Net Revenue	280.72	245.62	14.29%	288.67
Raw Materials	214.17	186.81		225.48
Employee Cost	11.22	9.80		10.41
Other Expenses	28.54	23.38		26.70
Total Expenditure	253.93	219.99		262.59
EBITDA(Excluding other Income)	26.79	25.63	4.51%	26.08
EBIDTA Margin(%)	9.54%	10.44%	(90 bps)	9.03%
Other Income	0.29	(0.48)		0.74
Depreciation	5.16	4.09		4.66
Interest / Finance Cost	8.32	6.14		8.00
Exceptional Item(Gain)/ Loss	0.00	0.00		0.00
Profit Before Tax	13.60	14.93		14.16
Tax	3.50	5.32		3.99
Profit After Tax	10.10	9.61	5.10%	10.17
Profit After Tax Margin(%)	3.60%	3.91%	(31 bps)	3.52%
Basic EPS(Rs.)	5.99	5.87	2.04%	6.10

 Increase in Revenue – mainly driven by higher demand for Industrial Switchgear and Wire & Cables business

9

H1 FY24 Consolidated Financial Highlights

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Rs. in Crore	H1 FY24	H1 FY23	Y-o-Y %
Net Revenue	569.40	488.76	16.50%
Raw Material Expenses	439.65	381.11
Employee Expenses	21.63	18.89
Other Expenses	55.24	42.43
Total Expenditure	516.52	442.43
EBITDA(Excluding other Income)	52.87	46.33	14.12%
EBITDA Margin(%)	9.29%	9.48%	(19 bps)
Other Income	1.02	0.75
Depreciation	9.82	8.11
Interest/Finance Cost	16.32	11.77
Exceptional Item(Gain) /Loss	0.00	0.00
PBT	27.76	27.20
Tax	7.50	7.95
PAT	20.27	19.25	5.29%
PAT Margin(%)	3.56%	3.94%	(38 bps)
Basic EPS(Rs.)	12.05	11.77	2.38%

 Increase in Revenue – higher sales in high demand products like Three phase transformers, wire harness, relays and contactors etc  Contribution from exports was 29.2% in FY23

10

Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

H1 FY24 Revenue Breakup – Business Verticals

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H1 FY23

H1 FY24

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Industrial
Switchgear, 53.2%
Building
Wire &
Segment, 8.0%
Cable, 38.9%
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Industrial
Switchgear, 55.1%
Building
Segment, 5.7% Wire &
Cable, 39.1%
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• Industrial Switchgear – 55.13% of net revenues

• Wires & Cables – 39.14% of net revenues

• Building Electrical Products – 5.73% of net revenues

11

H1 FY24 Revenue Breakup – Geographical

H1 FY23

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Asia (Exclu. Middle East,
India), 9.7% 1.0%
North & South
America, 5.3%
Europe,
7.2%
India, 76.9%
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H1 FY24

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Middle East,
Asia (Exclu.
1.3%
India), 10.1%
North & South
America, 9.1%
Europe,
8.7%
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India, 70.8%
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 Contribution from exports was 29.2% in H1 FY24

12

Key Standalone Financial Highlights – Annual

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Revenue (Rs. Crore)

EBITDA (Rs. Crore) / Margins (%)

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1013.1
783.6
605.6
559.8 566.9
FY19 FY20 FY21 FY22 FY23
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11.5% 10.2%
11.4% 9.0%
8.1%
91.4
63.6 65.2 61.8 63.8
FY19 FY20 FY21 FY22 FY23
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Net Profit (Rs. Crore)
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Earning per Share(Rs.)

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4.7%
4.3% 3.6%
3.4%
2.9%
36.4
24.0 22.5
20.7
26.4
FY19 FY20 FY21 FY22 FY23
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22.74
16.5
15.2
14.07
12.9
FY19 FY20 FY21 FY22 FY23
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13

Balance Sheet Highlights – Annual

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Return on Capital Employed ( %) Return on Equity (%)
9.0%
8.4% 8.5%
12.0%
11.6%
11.0%
9.4% 6.2% 6.4%
8.6%
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Debt to Equity(X) Networth as on 31st March (Rs. Crore)
0.71
0.68
0.60
0.56 402.89
0.49 351.47
331.3
309.4
287.0
FY19 FY20 FY21 FY22 FY23
FY19 FY20 FY21 FY22 FY23
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• Return on Capital Employed – EBIT/Total Capital Employed (Total Shareholders equity+LT Debt+ST Debt+Current Maturity of LT Debt-Non Current Investment), RoE – Net Profit/Networth , Debt to Equity = Total Debt/ Networth

14

Working Capital & Borrowings

Working Capital (Cr.) – Bar Chart Working Capital (Days) – Line Chart

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179
157
154
148
144
164.1
122.3
106.2
95.7 91.9
FY19 FY20 FY21 FY22 FY23
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Borrowing (Cr.)

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264.77
235.4
183.28
155.91
135.6
4.21 17.78 16.27 12.41 7.78
FY19 FY20 FY21 FY22 FY23
Long Term Borrowing Short Term Borrowing
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*Working Capital (Cr.) – Current Assets – Current Liabilities, Working Capital Days – Inventory Days + Receivable Days - Creditors Days

Consolidated Balance Sheet Highlights

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Rs. Crore	As on 30th Sept’ 23	As on 31st Mar’ 23		Rs. Crore	As on 30th Sept’ 23	As on 31st Mar’ 23*
Shareholder’s Funds	438.21	413.24		Non-current assets	274.15	267.43
Share capital	16.68	16.18		Property,Plant & Equipment	240.83	234.52
				Capital WIP	2.28	0.63
Other Equity	415.60	391.52
				Investments Property	0.01	0.01
Non ControllingInterest	5.93	5.54
				Intangible Assets	10.47	10.56
Non-current liabilities	35.21	34.78
				FA - Investments	0.99	0.91
Financial Liabilities
				FA - Trade Receivables	7.96	9.34
Borrowing	11.19	7.78
				FA - Others	6.28	6.17
Provisions	0.85	4.43
				Other Non Current Assets	5.33	5.29
Deferred Tax Liabilities(Net)	22.91	22.32
				Current assets	656.55	627.80
Other Non-Current Liabilities	0.26	0.25
				Inventories	279.96	273.80
Current liabilities	457.28	447.21
				Financial Assets
Financial Liabilities
				Investments	5.75	4.23
Borrowing	284.36	264.77
				Trade receivables	317.82	287.30
Trade Payable	88.54	112.01
				Cash & Cash equivalent	1.86	7.27
Others	5.19	5.33
				Bank Balance other than above	6.72	10.10
Other Current Liabilities	75.26	62.74
				Loans	10.55	10.21
Provisions	2.61	2.30		Other	0.28	0.43
Current tax liability (Net)	1.33	0.05		Other Current Assets	33.61	34.47
Total Equities & Liabilities	930.70	895.23		Total Assets	930.70	895.23

16

*Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

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Company Overview

17

About Us

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



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Leading player offering total and customized electrical solutions

Wide Distribution network – local and global

• Presence in Industrial Switchgears, Wires & Cables and Energy management business

• Own distribution network – local and global – export to 50 countries

• Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share

• Access to L&T’s local network through more than 350 distributors

Extensive Product portfolio across verticals with In-house manufacturing facilities

Strong focus on product development and innovation

• Registered Patent for Rotary Switches, five product patents in process

• Six manufacturing units located in Tamil Nadu

• More than 15 products catering to Industrial / Building Electrical / Automobile verticals

• Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031

18

From a Single Product Company…

Unit I (Coimbatore) – manufacture contactors, relays, panels, energy savers

Starting of long term association with L&T

1985

2001-06

Technical collaboration with Plitron for manufacture of Toroidal Transformers 1st Indian company to bring technology to India

Unit III - manufacture modular switches Started manufacturing of Wire & Cable for L&T

Established to manufacturer of CAM operated Rotary Switches

1991-95

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2017-23

Leading player offering total and Started commercial production of customized electrical solutions Three Phase Dry Type Transformers More than 15 different products Acquired Salzer Magnet Wires 2,000 employees Upgrade in Credit Rating for longterm borrowing to ‘CRISIL A/Stable’ 5 manufacturing units Acquired Kaycee Industries Ltd. Foray into tailor made products and branding for large customers Forays into EV Business through JVs with Kostad Steuerungsbau GmbH Specialized panels for OEMs and EMarch LLP

2,000 employees 5 manufacturing units Foray into tailor made products and branding for large customers Specialized panels for OEMs

2010-14

Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031 Receives patent for ‘Motor Protection Circuit Breaker With Increased Air Gap’

Set up new manufacturing rented facility strategically located in Hosur, Tamil Nadu – production to commence in March 2023

… to manufacturing multiple products across sectors

19

Professional Management

R. Doraiswamy

Managing Director

Qualified Electrical Engineer and Technocrat Entrepreneur with over 4 decades of experience

Vast Experience in Foreign Collaboration & wide global contacts

D. Rajeshkumar

Joint Managing Director

Electrical Engineer, India; Postgraduate in Business Management, US

JMD of Company - responsible for driving the vision of Company

P. Sivakumar A

AVP – Marketing Corporate

Bachelors in Engineering with over 3 decades of experience

Responsible for Sales & Marketing division

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M Laksminarayana

VP - Operations

B.E (Electrical) with over 2 decades of experience

Responsible for Production, Planning, Inventory Management, Maintenance & General Administration

D. Govindaraj

Sr. Manager-Corp. Accounts & Projects

Masters in Commerce, DLL and DTL with over 3 decades of experience

Responsible for project finance and corporate accounts

R Karunakaran

GM - PR & GST

BSc, Diploma in Marketing Management with more than 3 decades of experience

Responsible for GST and Public Relations of Company

20

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Business Overview

21

Business Overview

Industrial Switch Gear Products

• Transformers

• Terminal Blocks

• Rotary Switches

• Isolators

• General Purpose relays

• Wiring Ducts

• MPCB’s

• Contactors & OLR’s

• Control Panels

• Wire Harness

Building Electrical Products

• Modular Switches

• Wires & Cables

• MCB’s

• Changeovers

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Copper Products

• Wires & Cables

• Flexible Bus Bars

• Enamelled Wires

• Bunched Conductors

• Tinned Copper Wires

Energy Management products

• Energy Savers

• Street Light Controllers

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Wide Product Suite- Customized for OEM’s

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CT’s

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Terminal Sockets

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Coils / Inductors

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Panels

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In-house manufacturing and R&D enables superior customization of products

23

Key Strengths

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In-house manufacturing facilities with process capabilities ensures better product development and customization

Well developed R&D enables continual product innovation

Amongst few players in India, to offer total & customized electrical solutions Wide product basket – 15 products developed in-house

Wide distribution network – international and domestic

Tie up with L&T – access to over 350 dealers in India; own network for modular switches with 50 stockist in 4 southern & western states

Direct network across 50 countries with 40 international distributors

Largest manufacturer and market leader in CAM operated rotary switches

Strong engineering capabilities backed by in-house manufacturing and R&D team

Strong customer relationships across globe

Preferred supplier to GE, Schneider and only approved supplier of Nuclear Power Corporation

Largest supplier of rotary and load break switches to Indian Railways

Technical collaboration with Plitron for Toroidal transformers – 1st Company to bring technology to India, Joint Venture with C3Controls for contactors and relays

Resulting in all products been international certified and universal acceptance

24

Six Manufacturing facilities...

UNIT I UNIT 2 UNIT 3 Rotary Switch Toroidal Transformers Wiring Accessories

Contactors & Relays Isolators (Dis-connectors)

Panel Assembly Terminals Lighting Energy Savers Wiring Ducts Automatic Meter MPCB Reading Wire Harness Three Phase Dry Type 3 PH Transformers Transformers

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UNIT 4 UNIT 5 Hosur Plant Enamelled Copper Wires & Cables Wires Wire Harnesses Flexible Bus Bars Fine Enamelled Copper Wires Bunched Conductors Toroidal Transformers Polyester Coated Tinned Wires Winding wires

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...With In-house process capabilities...

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• Full fledged Type testing laboratory

• Loads up to 500Amps

• Environmental test chamber for humidity test

• Salt spray test & all other basic tests as per UL Standards

• In-house tool room facility for manufacturing and servicing of Moulds and press tools

• CNC Wire Cut Machines and Spark erosion machines

• CNC Machining center, EDM Drilling

• Conventional machines

• Latest digital measuring equipment

• Inspected and certified by GE Tool Divisionca

More than 80% components made in-house

26

...And a strong R&D team

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R&D expenses (Rs crore)

• In-house R&D Center

• More than 35 engineers

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12.00
10.37
10.04
9.07
8.50
7.75
4.27
2.50
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
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• Recognized by Department of Science, Govt of India

• Patented Rotary switches

• Six patents in process

• Manual Single-Phase Starter with no voltage tripping, Energy Saver System for Street Lighting, Track Feed Battery Changer Over System, Heavy duty energy efficient automatic source change over, Training warning system and Modular Housing

• Received two patents for CAM operated rotary switch & Motor Protection Circuit Breaker’ for duration of 20 years, ending 2036

• 1[st] of its kind product in India

• Designed and manufactured Load Break Switches, Single Hole Mounting Switches, Halogen Free Cable Ducts, Flat Wire Ducts, Flexible Bus Bars etc

Continual focus on product innovation

27

Internationally certified

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ISO 9001

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CB certification

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ISO 14001

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RoHS

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CE Certification

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Intertek Semko approval

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ISO 18001

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CSA Certification

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UL Certification

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... Across entire product portfolio

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Blue Chip Customers

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• Marketing Tie-up with L&T for Indian Market

• Largest supplier of rotary switches to Indian Railways

• Branding partner to various large OEM’s in India

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• Technical Tie-up with American Company C3Controls, to manufacture & market contactors & overload relays

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• Technical Tie-up with Trafomodern for Three Phase Transformers

• Preferred supplier to:

• Nuclear Power Corporation

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• Schneider Electric

• GE Energy

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Wide Distribution Network

Direct network across 50 countries

International

• Direct network across 50 countries

• 23% of sales from exports (FY22)

• 40 international distributors

• Plans to expand in US, Africa and Middle east

Domestic

• Tie up with L&T – access to more than 350 dealers in India

• Direct network for Modular Switches – 50 stockists in 4 southern & western states

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Way Ahead

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Way Ahead

Operational Excellence

Consistently executing business strategy and continued focus on improving operating costs by sourcing quality raw materials and efficient manpower

Venture into new project/ product development

Seek Technical alliances to develop new and technically advanced products

Acquired Kaycee Industries for new product development, enter new ventures and leverage brand & distribution network

Formed JV’s with Kostad Steuerungsbau GmbH & EMarch LLP to enter EV market

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Focus on margin improvement

Increase sales of high margin products – existing and new

Increase exports – fast growing markets of US, Africa and Middle East

Growth and expansion of existing product verticals

Constantly develop new products through inhouse R&D

Expand existing product portfolio to newer geographies

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ESG Initiatives

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Committed towards a cleaner, greener and healthier environment

Optimise energy consumption

Towards this end Company has identified installation of rooftop solar panels Plan to recycle water as per environmentally friendly norms

Increasing green cover around all plants in and around the manufacturing facilities Partner in EV Ecosystem to manufacture parts of environmentally friendly transportation

M./s JDS Associates for statutory audit, M/s. Covai Management Services for internal audit and M/s. G. Vasudevan for Secretarial Audit

Five independent Directors out of 11 Members on the Board

Focus on Better compliances and best governance practices

Plan for gender diversification on the Board in due course

Continues to contribute towards skill development among the local population

Recruitment of rural youth for local sales operations

Contribution for women empowerment. Engaged around 50% women employees hailed from local rural areas who are breadwinners of their families

Spending under CSR Initiatives for health Care and education of rural populous particularly residing in the

local regions

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ESG Initiatives - Carbon Emission by Scope

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Scope 1

• All Fossil fuels used in factories, such as diesel for backup power and fuels used in Cars, transport & fleet vehicles

Scope 2

• Electricity consumed at all factories and offices of Salzer owned facilities

• Also the avoidable emissions are calculated by the use of Renewable power by own renewable sources as well as purchased renewable sources

Details	Base Yr - 2019	Recent Yr - 2022	Delta
Scope 1 (Tons of Co2)	123	191	55%
Scope 2 (Tons of Co2)	8357	4217	-50%
Turnover INR Cr	559	783	40%
Scope 1+2 (Tons of Co2)	8480	4408	-48%
Intensity	0.000001517	0.000000563
Delta		-63%

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Scope 1+2 (Tons of Co2)
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8,480 - 48 %
4,408
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Base Yr.2019 Recent Yr.2022
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• 2019 was considered the Base year for calculation. 2020 & 2021 was not considered as it was a year with partial shutdowns due to Pandemic

• The Direct Greenhouse Gas (GHG) emission from facilities we operate (scope 1) has increased from 123 tons of Co2 to 191 tons of Co2. The increase over the last two years is due to higher activities due to increased turnover

• The indirect GHG emissions from Energy consumption (Scope 2) was calculated 10537 tons of Carbon. However, the offset due to Generation & Purchase of Renewable Power was at 6321 tons of Co2. Hence the Net Carbon Emission due to energy Consumption is at 4217 tons of Co2. At total reduction of 50% compared to 2019

• Scope 1 & 2 put together there is a Net reduction of 48% in carbon emissions from 8480 tons of Co2 to 4408 tons of Co2

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murugesan@salzergroup.com www.salzergroup.net Adfactorspr Pvt. Ltd. Ms. Savli Mangle savli.mangle@Adfactorspr.com Mr. Rupesh Rege Rupesh.rege@Adfactorspr.com www.adfactorspr.com

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