Salzer Electronics Limited Result Update Presentation Q1 FY19 - PowerPoint PPT Presentation

Salzer Electronics Limited Result Update Presentation Q1 FY19

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 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.

Table of Contents Financial Highlights 01 Company Overview 02 Business Overview 03 Way Ahead 04 3

Financial Highlights Salzer Electronics Limited Investor Presentation FY17

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. This growth has come from all across our three key businesses. We have seen a good growth from our newly launched products of wire harness and three phase dry type transformers. The building segment grew by more than 85% year on year, as we added new products like MCB’s and Salzer Branded wires to the retail segment. Our product mix and increased contribution from higher margin products led to a growth in EBIDTA. I believe this is an indication of our efforts to offer good quality and high margin products and improve our operational efficiencies. We expect this margin to sustain and our endeavour continues to remain on profitable growth and margin improvement. We are also making inroads into new industry like solar investors for three phased transformers, elevators industry for wire harness and locomotives. Our focus always remains on adding new high margin products, reach out newer geographies and offer customized solutions to our clients. We are constantly looking for new opportunities for technical associations to strengthen our base of product offering. ”

Key Financial Highlights- Q1 FY19* (YoY) 21% 33% 102bps 12% Revenue Rs 126.5 crore EBITDA Rs 14.0 crore EBITDA Margin 11.0% PAT Rs 4.5 crore • Revenue driven by all three key businesses of Industrial Switch Gears, Building segment and Wires & Cables • Better product mix leading to increase in EBITDA margin YoY 6 * Numbers as per Ind AS guidelines

Q1 FY19 Financial Highlights* Q1 FY19 Q1 FY18 Y-o-Y % Q4 FY18 Rs. in Crore Total Income from Operations 126.5 115.1 9.8% 126.8 0.0 10.6 0.0 Excise Duty Net Revenue 126.5 104.6 20.9% 126.8 96.1 78.1 91.6 Raw Materials 5.9 4.6 5.4 Employee Cost Other Expenses 10.5 11.3 13.3 112.5 94.1 110.3 Total Expenditure 14.0 10.5 33.2% 16.4 EBITDA EBIDTA Margin (%) 11.05% 10.03% 102bps 12.94% 0.2 2.0 (0.9) Other Income Depreciation 3.1 2.7 2.9 Interest / Finance Cost 4.7 4.0 3.9 6.3 5.8 8.5% 8.7 Profit Before Tax 1.8 1.8 3.9 Tax Profit After Tax 4.5 4.1 11.8% 4.9 3.59% 3.89% 3.83% PAT Margin (%) 7 * Numbers as per Ind AS guidelines

Q1 FY19 Revenue Breakup – Business Verticals* Q1 FY19 Q1 FY18 Building Building Energy Segment, Segment, Mgmt , 5.0% 7.8% 2.8% Wire & Industrial Industrial Wire & Cable, Switchgear, Switchgear Cable, 54.3% 37.8% , 37.1% 55.2% 8 * Numbers as per Ind AS guidelines

Q1 FY19 Revenue Breakup – Geographical* Q1 FY19 Q1 FY18 Asia Middle Asia (Exclu. Middle (Exclu. East, 1.6% India), 5.9% East, 1.1% U.S, 3.3% U.S, 3.0% India), 5.8% Europe, Europe, 4.1% 4.5% India, India, 85.1% 85.5% 9 * Numbers as per Ind AS guidelines

Key Financial Highlights – FY18* 15.0% 20.7% 56bps 15.4% Revenue Rs 442.8 crore EBITDA Rs 53.3 crore EBITDA Margin 12.0% PAT Rs 20.0 crore • Good traction in Three Phase Transformers – leading to significant contribution from this product • 100% growth in wire harness business • Growth driven by uptick in Industrial Switchgear and higher demand in Wire & Cable Segments 10 * Numbers as per Ind AS guidelines

Key Financial Highlights – FY18* Revenue (Rs. Cr) EBITDA (Rs. Cr) / Margins (%) 12.5% 60 13% 442.8 12.0% 13% 50 385.0 12% 361.1 12% 11.9% 40 283.3 11.5% 11% 30 11% 53.3 10% 44.1 42.9 20 10% 35.5 9% 10 9% 0 8% 2015 2016 2017 2018 2015 2016 2017 2018 Net Profit (Rs. Cr) Networth (Rs. Cr) 272.8 25 5% 4.7% 232.6 5% 4.5% 4.5% 20 5% 191.3 5% 15 4% 4.2% 107.0 4% 10 20.0 17.0 4% 17.3 12.0 4% 5 4% 0 4% 2015 2016 2017 2018 2015 2016 2017 2018 11 * Numbers as per Ind AS guidelines

FY18 Financial Highlights* Rs. in Crore FY18 FY17 Y-o-Y % Total Income from Operations 453.3 443.7 Excise Duty 10.6 58.7 Net Revenue 442.8 385.0 15.0% Raw Material Expenses 323.5 272.0 Employee Expenses 19.9 18.7 Other Expenses 46.2 50.1 Total Expenditure 389.5 340.8 EBITDA 53.3 44.1 20.7% EBITDA Margin 12.03% 11.47% 56 bps Other Income 3.1 5.4 Depreciation 10.5 8.9 Interest / Finance Cost 14.9 14.6 PBT 30.9 26.1 18.5% Tax 10.9 8.8 PAT 20.0 17.3 15.4% PAT Margin 4.52% 4.50% 12 * Numbers as per Ind AS guidelines

FY18 Revenue Breakup – Business Verticals* FY18 FY17 Energy Building Building Energy Mgmt , Segment, Segment, Managem 1.2% 4.7% 6.0% ent , 2.7% Industrial Wire & Switchgear Wire & Industrial Cable, , 45.8% Cable, Switchgear 45.6% 49.2% , 45.0% 13 * Numbers as per Ind AS guidelines

FY18 Revenue Breakup – Geographical* FY18 FY17 Asia (Exclu. Middle Middle India), East, 1.5% East, 1.6% U.S, 4.0% 6.5% U.S, 2.6% Asia Europe, (Exclu. Europe, 5.3% India), 4.1% 9.6% India, India, 82.2% 82.8% 14 * Numbers as per Ind AS guidelines

Balance Sheet as on 31 st March As on 31 st As on 31 st As on 31 st As on 31 st Rs. Crs Rs. Crs Mar’18 Mar’17 Mar’18 Mar’17 209.7 182.7 Non-current assets Equity 272.8 232.6 Property, Plant and Equipment 161.8 136.6 Equity Share Capital 15.5 14.3 Capital work in progress 6.4 9.1 Other Equity 257.3 218.2 Investment Property 0.0 0.0 29.7 30.1 Non-current liabilities Intangible Assets 4.6 2.3 Financial Assets Financial Liabilities Investments 0.9 0.8 (a) Borrowing 7.7 11.8 Trade Receivables 21.9 21.7 Provisions 0.3 0.2 Others 12.0 9.8 Deferred Tax Liabilities (Net) 21.8 18.1 Other non Current Assets 2.1 2.4 333.4 271.2 Current liabilities 240.6 191.2 Current assets Inventories 138.3 93.4 Financial Liabilities Financial Assets (a) Borrowing 127.8 103.0 Investments 2.2 3.9 (b) Trade Payables 36.3 28.4 Trade Receivables 117.3 117.0 (c) Other Financial Liabilities 10.5 11.0 Cash & Cash Equivalent 1.6 5.7 Bank Balance other than above 8.4 6.7 Other Current Liabilities 57.6 46.8 Loans 39.5 29.6 Provisions 0.8 0.2 Other Financial Assets 2.6 0.8 Current Tax Liabilities (Net) 7.6 1.8 Other Current Assets 23.4 14.2 Total Equities & Liabilities 543.1 453.9 543.1 453.9 Total Assets 15 * Numbers as per Ind AS guidelines