Salzer Electronics Limited · NSE:SALZERELEC
Salzer Electronics — Q2 FY19 Earnings Presentation
37 slides from Salzer Electronics's earnings presentation, Oct 27, 2018
Slide 1: Result Update Presentation Q2 & H1 FY19
Salzer Electronics Limited Result Update Presentation Q2 & H1 FY19
Slide 2: Disclaimer
Disclaimer 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 an
Slide 3: Table of Contents
Table of Contents Financial Highlights 01 Company Overview 02 Business Overview 03 Way Ahead 04 3
Slide 4: Financial Highlights
Financial Highlights Salzer Electronics Limited Investor Presentation FY17
Slide 5: Joint Managing Director’s Message
Joint Managing Director’s Message Commenting on the results, Mr. Rajesh Doraiswamy, Joint Managing Director, said : “I am happy to share that this quarter once again, we have demonstrated good growth in our revenues, despite a challenging industry scenario domestically especially in the industrial s
Slide 6: Q2 FY19 Financial Highlights
Q2 FY19 Financial Highlights* Rs. in Crore Q2 FY19 Q2 FY18 Y-o-Y % Q1 FY19 Total Income from Operations 134.7 100.7 126.5 • Revenue Excise Duty 0.0 0.0 0.0 predominantly driven by Net Revenue 134.7 100.7 33.7% 126.5 organic growth Raw Materials 98.5 72.8 96.1 in Industrial Employee Cost 6.7 5.1 5.9
Slide 7: Q2 FY19 Revenue Breakup – Business Verticals
Q2 FY19 Revenue Breakup – Business Verticals* Q2 FY19 Q2 FY18 Energy Building Management , Segment, Building 4.6% 4.1% Segment, 9.1% Industrial Wire & Industrial Wire & Switchgear, Cable, Switchgear, Cable, 46.2% 49.7% 42.7% 43.6% * Numbers as per Ind AS guidelines 7
Slide 8: Q2 FY19 Revenue Breakup – Geographical
Q2 FY19 Revenue Breakup – Geographical* Q2 FY19 Q2 FY18 Asia (Exclu. Middle Asia (Exclu. Middle India), 7.6% East, 1.9% India), 9.7% East, 1.9% U.S, 2.1% Europe, U.S, 4.6% 4.7% Europe, 6.5% India, India, 77.4% 83.9% * Numbers as per Ind AS guidelines 8
Slide 9: Key Financial Highlights – H1 FY19
Key Financial Highlights – H1 FY19 27% Revenue Rs 261.2 crore 31% EBITDA Rs 30.7 crore 35bps EBITDA Margin 11.8% 3% PAT Rs 10.2 crore • Increase in Revenue driven across all business segments • Better product mix and increase in product offerings leading to increase in EBITDA margin YoY * Numbers as
Slide 10: H1 FY19 Financial Highlights
H1 FY19 Financial Highlights* Rs. in Crore H1 FY19 H1 FY18 Y-o-Y % Total Income from Operations 261.2 215.9 Excise Duty 0.0 10.6 Net Revenue 261.2 205.3 27.2% Raw Material Expenses 194.6 150.9 Employee Expenses 12.6 9.8 Other Expenses 23.3 21.2 Total Expenditure 230.5 181.9 EBITDA 30.7 23.4 31.1% EB
Slide 11: H1 FY19 Revenue Breakup – Business Verticals
H1 FY19 Revenue Breakup – Business Verticals* H1 FY19 H1 FY18 Building Building Energy Segment, Energy Mgmt , 1.2% Segment, Managem 8.4% 4.6% ent , 1.5% Industrial Industrial Wire & Wire & Switchgear Switchgear Cable, Cable, , 43.7% , 40.5% 50.3% 48.7% * Numbers as per Ind AS guidelines 11
Slide 12: H1 FY19 Revenue Breakup – Geographical
H1 FY19 Revenue Breakup – Geographical* H1 FY19 H1 FY18 Asia (Exclu. Middle Middle India), Asia (Exclu. East, 1.8% East, 1.5% U.S, 2.7% 6.7% India), 7.7% U.S, 3.7% Europe, 4.4% Europe, 5.4% India, India, 81.7% 84.5% * Numbers as per Ind AS guidelines 12
Slide 13: Balance Sheet as on 30th Sept’18
Balance Sheet as on 30th Sept’18 As on 30th As on 30th As on 30th As on 30th Rs. Crs Rs. Crs Sept’18 Sept’17 Sept’18 Sept’17 Equity 275.6 243.6 Non-current assets 213.4 187.8 15.9 14.5 Property, Plant and Equipment 169.3 140.6 Equity Share Capital Capital work in progress 1.7 8.5 Other Equity 259.7
Slide 14: Company Overview
Company Overview Salzer Electronics Limited Investor Presentation FY17
Slide 15: Company Overview
Company Overview Leading player offering total and customized electrical solutions ▪ Presence in Industrial Switchgears, Wires & Cables and Energy management business ▪ Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share Extensive Product portfolio across verticals St
Slide 16: From a Single Product Company…
From a Single Product Company… ▪ Unit I (Coimbatore) – ▪ Leading player offering total manufacture contactors, and customized electrical relays, panels, energy savers solutions ▪ Starting of long term ▪ More than 15 different association with L&T products ▪ Technical collaboration with ▪ 2,000 emplo
Slide 17: Professional Management
Professional Management • Core Promoter for over 2 decades of experience R.Doraiswamy • Qualified Electrical Engineer and Technocrat Entrepreneur Managing Director • Vast Experience in Foreign Collaboration & wide global contacts D.Rajeshkumar • Electrical Engineer , India; Post Graduate in Business
Slide 18: Business Overview
Business Overview salzer
Slide 19: Business Overview
Business Overview Copper products Industrial Switch Gear Products ▪ Wires & Cables ▪ Transformers ▪ Flexible Bus Bars ▪ Terminal Blocks ▪ Enamelled Wires ▪ Rotary Switches ▪ Bunched Conductors ▪ Isolators ▪ Tinned Copper Wires ▪ General Purpose relays ▪ Wiring Ducts ▪ MPCB’s ▪ Contactors & OLR’s ▪ C
Slide 20: Wide Product Suite – Industrial Switch gears
Wide Product Suite – Industrial Switch gears Products Features ▪ More than 75 sizes Cable Ducts/ Wire Ducts ▪ India’s largest RoHS and Halogen Free Ducts UL and CSA Listed ▪ 6A to 400 Amps Rotary Switches ▪ > 2500 ranges ▪ UL & CB Tested ▪ 16 to 250 Amps ▪ UL 50 rated Enclosed mounting Isolators (Di
Slide 21: Wide Product Suite – Industrial Switch gears
Wide Product Suite – Industrial Switch gears Products Features ▪ 16 to 250 Amps ▪ UL 50 rated Enclosed mounting Contractors & Overload Relays ▪ Changeover Switches ▪ DC – PV Isolators ▪ CB Tested Two Frames Motor Protection Circuit ▪ 0.1 amps to 63 Amps Breaker(MPCB) ▪ Type F Co-ordinated ▪ UL Liste
Slide 22: Wide Product Suite – Building Products
Wide Product Suite – Building Products Products Features ▪ Unique - patented design - Contactor based Automatic Source Changeover ACCL with Current Limiter ▪ Heavy Duty - AC 32A and AC22A utilization category ▪ Easy to Install Distribution Board ▪ User Friendly ▪ Durable ▪ High Performance – 10KA Mi
Slide 23: Wide Product Suite – Copper Products
Wide Product Suite – Copper Products Products Features From 0.5- 240 Sq mm ▪ Single & Multi Core PVC Insulated Copper wires & ▪ FR, FRLS, Halogen Free Cables ▪ UL Listed Upto 1000 Amps ▪ Only Manufacturer in India Flexible Busbars ▪ UL Listed ▪ Power Cable Harness ▪ Control cable harness Wire Harnes
Slide 24: Wide Product Suite – Energy Mgmt. Services
Wide Product Suite – Energy Mgmt. Services • Increases lamp-life by an average of 20% for HPSV lamps • 30% reduction in energy consumption under normal Energy Saver working conditions • Reduces the power consumption by optimizing the & Panels voltage to the lamps • State of the art GSM/ GPRS technol
Slide 25: Wide Product Suite- Customised for OEM’s
Wide Product Suite- Customised for OEM’s CT’s Terminal Socket Coils / Inductors Panels In-house manufacturing and R&D enables superior customization of products 25
Slide 26: Key Strengths
Key Strengths Wide Product Suite ▪ Amongst few players in India, to offer total & customized electrical solutions ▪ Wide product basket – 15 products developed in-house Complete Backward Integration ▪ Largest manufacturer and market leader in CAM operated rotary switches ▪ In-house manufacturing fac
Slide 27: Four Manufacturing facilities...
Four Manufacturing facilities... UNIT I UNIT 2 UNIT 3 UNIT 4 • Rotary Switch • Toroidal Transformers • Wiring Accessories • Wires & Cables • Contactors & Relays • Isolators (Dis-connectors) • Flexible Bus Bars • Panel Assembly • Terminals • Bunched Conductors • Lighting Energy Savers • Wiring Ducts
Slide 28: ...With In-house process capabilities
...With In-house process capabilities... • Full fledged Type testing laboratory • In-house tool room facility for manufacturing and – Loads up to 500Amps servicing of Moulds and press tools – Environmental test chamber for humidity test – CNC Wire Cut Machines and Spark erosion machines – Salt spray
Slide 29: ...And a strong R&D team
...And a strong R&D team R&D expenses (Rs crore) • In-house R&D Center − More than 35 engineers 8.4 − Recognized by Department of Science, Govt of India 7.8 • Patented Rotary switches 5.7 • 5 patents in process − Manual Single Phase Starter with no voltage tripping, Energy 4.3 Saver System for Stree
Slide 30: Internationally certified ... Across entire product portfolio
Internationally certified ISO 9001 ISO 14001 ISO 18001 CE Certification UL Certification CB certification RoHS Intertek Semko approval CSA Certification ... Across entire product portfolio 30
Slide 31: Blue Chip Customers
Blue Chip Customers • Technical Tie-up with American Company • Marketing Tie-up with L&T for Indian Market C3Controls, to manufacture & market contactors & over load relays. • Largest supplier of rotary & load break switches to • Technical Tie-up with Trafomodern for Three Phase Indian Railways Tran
Slide 32: Wide Distribution Network
Wide Distribution Network International • Direct network across 50 countries − 23% of sales from global distribution − 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 Swit
Slide 33: Way Ahead
Way Ahead
Slide 34: Future Growth Drivers
Future Growth Drivers Growth and expansion of existing product verticals Margin improvement through ▪ Increase sales of high margin products – existing and new ▪ Increase exports – fast growing markets of US, Africa and Middle East Venture into new project/ product development 34
Slide 35: 2017-18 – Proposed new products to be launched
2017-18 – Proposed new products to be launched ▪ Product developed and Invoicing started Wire Harness & Consoles ▪ Industrial Wire Harnessing - Very good potential in Indian Market ▪ Value Addition for Wires & Cables. ▪ New & different set of customers bringing new opportunities ▪ Secured 10 Year co
Slide 36: Future Growth Drivers- Energy Mgmt. Business
Future Growth Drivers- Energy Mgmt. Business Only manufacturer in India: ▪ Energy savers ▪ Street light controllers CRISIL rated Grade I ESCO Operator for street lighting Significant opportunity in power starved country Successfully implemented for: ▪ Madurai Corporation ▪ Coimbatore Corporation ▪ N
Slide 37: Thank You
Thank You SALZERELEC 517059 SZE IN SALZ.BO For further information, please contact: Company : Investor Relations Advisors : Salzer Electronics Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Baskarasubramanian Ms. Savli Mangle [email protected] [email protected] www.salzergroup.net w