Salzer Electronics Limited Result Update Presentation November 2017
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 Q2 & H1 FY18 Financial Highlights 01 Company Overview 02 Business Overview 03 Way Ahead 04 3
Q2 & H1 FY18 Financial Highlights Salzer Electronics Limited Investor Presentation FY17
Joint Managing Director’s Message Commenting on the results, Mr. D Rajesh Kumar, Joint Managing Director, said : “I am happy to share that this quarter we have demonstrated growth in our revenues. This growth was mainly driven by demand in our wire & cables business and a good pickup in our industrial switch gear business. Another Significant factor was the Growth in Exports in Q2 which was at 29% y-o-y. This was mainly due to increase in exports to UK & USA. Our EBIDTA has also grown and we have shown improvement in margins sequentially of more than 270 basis points. I believe this is an indication of our efforts over the past three quarters, on improving our margins and increasing our operating efficiencies. We expect this trend of margin improvement will continue and our endeavour continues to remain on profitable growth and improving our margins. We continue to focus on adding new, niche and high margin products, enter new geographies and offer total and customised electrical solutions to our existing and new customers. To aid to this we are constantly on the lookout for any new opportunities for technical associations to strengthen the base for our product offerings. ”
Key Financial Highlights- Q2 FY18* 9.0% 7.8% 8.1% Revenue Rs 100.7 crore EBITDA Rs 12.9 crore PAT Rs 5.8 crore • Growth driven by increased Exports, better demand in Industrial switchgear and Wire & cables segments • Revenues grew @9% despite Zero contribution from Energy Management business • EBIDTA growth of 7.8 % is due to better realization in various switchgear products. • EBIDTA Margin improved by 83 basis points to 12.8% 6 * Numbers as per Ind AS guidelines
Q2 FY18 Financial Highlights* Q2 FY18 Q2 FY17 Y-o-Y % Q1 FY18 Rs. in Crore Total Income from Operations 100.7 100.0 115.1 - 7.5 10.6 Excise Duty Net Revenue 100.7 92.5 9.0% 104.6 Raw Materials 72.8 65.5 78.1 5.1 4.6 4.6 Employee Cost Other Expenses 9.9 10.5 11.4 Total Expenditure 87.8 80.6 94.1 12.9 12.0 10.5 EBITDA 7.8% EBIDTA margin (%) 12.8% 13.0% 10.0% Interest 3.5 3.6 4.0 2.3 2.0 2.7 Depreciation Other Income 1.3 1.2 2.0 Profit Before Tax 8.5 7.7 5.8 Tax 2.7 2.3 1.8 Profit After Tax 5.8 5.4 8.1% 4.1 PAT Margin (%) 5.8% 5.8% 3.9% 7 * Numbers as per Ind AS guidelines
Q2 FY18 Revenue Breakup – Business Verticals* Q2 FY18 Q2 FY17 60.0 60.0 50.1 50.0 46.5 50.0 46.5 38.4 40.0 40.0 Rs Cr Rs Cr 30.0 30.0 20.0 20.0 7.7 7.3 10.0 10.0 4.2 0.0 0.0 0.0 Industrial Wire & Cable Building Segment Energy Industrial Wire & Cable Building Segment Energy Switchgear Business Management Switchgear Business Management Business Business Revenue Share (%) Q2 FY18 Q2 FY17 Industrial Switchgear 50% 47% Wire & Cable 46% 38% Building Segment 4% 8% Energy management 0% 7% Total Revenue 100% 100% 8 * Numbers as per Ind AS guidelines
Q2 FY18 Revenue Breakup – Geographical* Q2 FY18 Q2 FY17 Middle Middle East, 1.9% East, 1.4% U.S, 2.5% Asia Asia (Exclu. (Exclu. U.S, 4.6% Europe, India), India), 3.3% 10.4% 9.7% Europe, 6.5% India, India, 77.4% 82.4% 9 * Numbers as per Ind AS guidelines
Key Financial Highlights- H1 FY18* 12.5% 0.7% 1.8% Revenue Rs 205.3 crore EBITDA Rs 23.4 crore PAT Rs 9.9 crore • Growth driven by key business Verticals of Industrial Switchgears & Wires and Cables • Though Absolute EBIDTA has grown by 0.7%, Decline in EBIDTA margin was on account of higher contribution from lower margin business of Wires & Cables in Q1 FY18 especially. 10 Half yearly Numbers as per Ind AS
H1 FY18 Financial Highlights* Rs. in Crore H1 FY18 H1 FY17 Y-o-Y % Total Income from Operations 215.9 199.4 Excise Duty 10.6 16.9 Net Revenue 205.3 182.5 12.5% Raw Materials 150.9 130.2 Employee Cost 9.8 8.8 Other Expenses 21.2 20.2 Total Expenditure 181.9 159.2 EBITDA 23.4 23.2 0.7% 11.4% 12.7% EBIDTA margin (%) 7.5 6.9 Interest 5.0 4.3 Depreciation Other Income 3.4 2.0 Profit Before Tax 14.3 14.0 Tax 4.5 4.3 Profit After Tax 9.9 9.7 1.8% PAT Margin (%) 4.8% 5.3% 11 Half yearly Numbers as per Ind AS
H1 FY18 Revenue Breakup – Business Verticals* H1 FY18 H1 FY17 120.0 120.0 109.8 93.7 100.0 100.0 88.3 86.1 80.0 80.0 Rs Cr Rs Cr 60.0 60.0 40.0 40.0 14.0 20.0 20.0 11.1 9.4 3.0 0.0 0.0 Industrial Wire & Cable Building Segment Energy Industrial Wire & Cable Building Segment Energy Switchgear Business Management Switchgear Business Management Business Business Revenue Share (%) H1 FY18 H1 FY17 Industrial Switchgear 43% 44% Wire & Cable 51% 43% Building Segment 4% 6% Energy management 1% 7% Total Revenue 100% 100% 12 Half yearly Numbers as per Ind AS
H1 FY18 Revenue Breakup – Geographical* H1 FY18 H1 FY17 Asia (Exclu. Middle India), East, 1.5% Middle 7.7% U.S, 3.7% East, 1.8% U.S, 3.1% Asia Europe, (Exclu. Europe, 5.4% India), 3.8% 8.9% India, 81.7% India, 82.4% 13 Half yearly Numbers as per Ind AS
Balance Sheet as on September 30 th 2017* Rs. in Crore Sept-17 Rs. in Crore Sept-17 Non-current Assets 184.9 Equity 243.6 Property, Plant and Equipment 140.6 Equity Share Capital 14.5 Capital WIP 8.5 Other Equity 229.1 Investment Property 0.0 Non Current Liabilities 29.0 Intangible Assets 1.7 Financial Liabilities Financial Assets i) Borrowing 9.4 i) Investments 1.4 ii) Trade Payables 0.0 ii) Trade Receivables 31.3 Provisions 0.3 iii) Other 1.4 Deferred Tax Liabilities (Net) 19.3 Current Assets 290.9 Other Current Liabilities 0.0 Inventories 94.8 Current Liabilities 203.2 Financial Assets i) Investments 2.0 Financial Liabilities ii) Trade Receivables 114.5 i) Borrowings 102.4 iii) Cash & Cash Equivalent 10.5 ii) Trade Payables 29.3 iv) Bank Balance other than above 5.2 iii) Other Financial Liabilities 11.1 v) Loans 3.6 Provisions 0.3 vi) Other 13.3 Other Current Liabilities 57.0 Current Tax Assets 0.9 Current Tax Liabilities (Net) 3.0 Other Current Assets 46.0 14 Total Liabilities 475.8 Total Assets 475.8 * Numbers as per Ind AS
Company Overview Salzer Electronics Limited Investor Presentation FY17
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