Salzer Electronics Limited Result Update Presentation Q3 & 9M 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. 2
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 : “This nine months FY19, we have demonstrated revenue growth of 28% YoY, on account of higher contributions from Wires & cables and building product segments, despite a challenging industry scenario and rising cost of raw materials. Throughout the nine months FY19 our products namely three phase dry type transformers, wire harness along with our legacy product of cam operated rotary switches has shown good traction in the industrial switch gears segment and we have been able to increase our sales of Modular Switches, MCB’s Distribution Boards, Changeovers, Wires & Cables which has help us grow in India. We continually focus on adding new high margin products under our product portfolio, reach out newer geographies and offer total customized solutions to our customers. Our focus also remains on new opportunities for technical associations/acquisition to further strengthen our base of product offerings. ” 5
Q3 FY19 Financial Highlights* Rs. in Crore Q3 FY19 Q3 FY18 Y-o-Y % Q2 FY19 Total Income from Operations 143.5 110.7 134.7 0.0 0.0 0.0 Excise Duty Net Revenue 143.5 110.7 29.7% 134.7 Raw Materials 106.6 80.9 98.5 7.6 4.6 6.7 Employee Cost 13.2 11.7 12.8 Other Expenses Total Expenditure 127.4 97.2 118.0 16.1 13.5 19.4% 16.7 EBITDA 11.21% 12.18% 12.40% EBIDTA Margin (%) Other Income 0.1 0.6 0.1 3.4 2.6 3.3 Depreciation Interest / Finance Cost 4.9 3.6 4.8 Profit Before Tax 8.0 7.9 8.8 2.6 2.6 3.2 Tax 5.4 5.3 2.0% 5.6 Profit After Tax • Contribution from domestic sales at 84% mainly driven by wires & cables and building segments 6 * Numbers as per Ind AS guidelines
Q3 FY19 Revenue Breakup – Business Verticals* Q3 FY18 Q3 FY19 Building Energy Energy Building Segment, Managemen Manageme Segment, 5.1% t , 0.8% nt , 1.3% 6.6% Industrial Wire & Wire & Switchgear, Cable, 45.2% Industrial Cable, 48.9% Switchgear, 48.1% 44.0% • Industrial Switchgear – 44.0% of net revenues - mainly on driven by two products - 3 phase dry type phase transformers and wire harness and despite continued sluggishness in Indian industrial switchgear industry • Buildings Products – 6.6% of net revenues, on account of increase in focus on retail segment in India • Wires & Cables – 48.1% of net revenues, mainly on account of consolidation of Salzer Magnet Wires (acquired in Q4 FY18) and increase in demand 7 * Numbers as per Ind AS guidelines
Q3 FY19 Revenue Breakup – Geographical* Q3 FY18 Q3 FY19 Asia (Exclu. Middle Asia Middle India), 5.4% East, 1.3% (Exclu. East, 1.5% India), U.S, 1.9% U.S, 5.8% 7.3% Europe, 4.9% Europe, 5.5% India, India, 84.4% 82.1% 8 * Numbers as per Ind AS guidelines
9M FY19 Financial Highlights* Rs. in Crore 9M FY19 9M FY18 Y-o-Y % Total Income from Operations 404.7 326.6 • 28% YoY growth in Net Revenue - mainly driven Excise Duty 0.0 10.6 by wires & cables and Net Revenue 404.7 316.0 28.1% building segments Raw Material Expenses 301.2 231.8 • Contribution from Employee Expenses 20.2 14.4 domestic sales at 84% Other Expenses 36.5 32.9 mainly driven by increase in demand and Total Expenditure 358.0 279.1 good traction for EBITDA 46.8 36.9 26.8% products in Building and EBITDA Margin 11.56% 11.67% Industrial Switchgear Segments Other Income 0.4 4.0 Depreciation 9.7 7.6 • 27% YoY growth in EBITDA - mainly on Interest / Finance Cost 14.3 11.1 account of growth of all PBT 23.1 22.2 business segments Tax 7.6 7.0 PAT 15.6 15.2 2.6% 9 * Numbers as per Ind AS guidelines
9M FY19 Revenue Breakup – Business Verticals* 9M FY18 9M FY19 Building Energy Building Energy Segment, Managem Segment, Managem 4.8% ent , 1.2% 7.8% ent , 2.0% Wire & Wire & Industrial Cable, Industrial Cable, Switchgear 48.5% Switchgear 48.5% , 45.5% , 41.8% • Industrial Switchgear – 41.8% of net revenues, mainly driven by two products - 3 phase dry type phase transformers and wire harness and despite continued sluggishness in Indian industrial switchgear industry • Buildings Products – 7.8% of net revenues, on account of increase in product offerings and focus on the retail segment in India • Wires & Cables – 48.5% of net revenues, mainly on account of consolidation of Salzer Magnet Wires • Energy Management – 2.0% of net revenue - an order book driven business and increase in revenues has been from increase in AMC 10 * Numbers as per Ind AS guidelines
9M FY19 Revenue Breakup – Geographical* 9M FY18 9M FY19 Asia (Exclu. Middle Middle Asia (Exclu. India), East, 1.7% East, 1.4% India), 6.9% U.S, 2.4% U.S, 4.4% 6.9% Europe, Europe, 4.6% 5.5% India, India, 81.8% 84.4% 11 * Numbers as per Ind AS guidelines
Balance Sheet as on 30 th Sept’18 As on 30 th As on 30 th As on 30 th As on 30 th Rs. Crs Rs. Crs Sept’18 Sept’17 Sept’18 Sept’17 213.4 187.8 Non-current assets Equity 275.6 243.6 Property, Plant and Equipment 169.3 140.6 15.9 14.5 Equity Share Capital 1.7 8.5 Capital work in progress 259.7 229.1 Other Equity Investment Property 0.0 0.0 27.2 29.0 Non-current liabilities Intangible Assets 4.5 1.7 Financial Assets Financial Liabilities Investments 0.7 1.4 (a) Borrowing 4.0 9.4 Trade Receivables 18.6 31.3 Provisions 0.4 0.3 Others 15.5 1.4 22.8 19.3 Deferred Tax Liabilities (Net) 3.1 2.9 Other non Current Assets 256.5 203.2 Current assets 346.0 288.0 Current liabilities 139.7 94.8 Inventories Financial Liabilities Financial Assets (a) Borrowing 117.7 102.4 2.5 2.0 Investments (b) Trade Payables 64.0 29.3 Trade Receivables 122.3 114.5 (c) Other Financial Liabilities 11.8 11.1 9.1 10.5 Cash & Cash Equivalent Bank Balance other than above 9.4 5.2 58.5 57.0 Other Current Liabilities 38.9 40.3 Loans 0.6 0.3 Provisions Other Financial Assets 2.9 2.9 Current Tax Liabilities (Net) 3.9 3.0 21.1 17.7 Other Current Assets Total Equities & Liabilities 559.3 475.8 Total Assets 559.3 475.8 12 * Numbers as per Ind AS guidelines
Company Overview Salzer Electronics Limited Investor Presentation FY17
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