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HomeStocksSalzer Electronics: Innovating Power Solutions for a brighter tomorrow

Salzer Electronics: Innovating Power Solutions for a brighter tomorrow

Patent Triumph 

In a groundbreaking achievement, Salzer Electronics Limited announced the acquisition of a 20-year patent for its revolutionary “Heavy Duty Energy Efficient Automatic Source Changeover” (ACCL). This game-changing product, introduced in 2016, has not only set a new standard in power management but has also contributed significantly to the company’s coffers, generating an impressive Rs. 10 Crores in revenue, primarily within the Building Segment business division. 

The ACCL is a precision-engineered system designed to adeptly manage generator power distribution in various settings, from residential buildings to apartment complexes, townships, and commercial structures. The distinguishing feature of this Automatic Source Changeover is its current-limiting capability, strategically preventing generator overload. 

Management Insight: 

Rajesh Doraiswamy, Joint Managing Director of Salzer Electronics Ltd, expressed his elation, stating, “I am pleased to announce that we have successfully secured a patent for our product, the Heavy Duty Energy Efficient Automatic Source Changeover. This patented innovation, (ACCL), made its market debut in 2016 and has proven to be a precise solution crafted to effectively manage the distribution of generator power in tall residential buildings, townships, and commercial structures. Its function is to help prevent overloading on the generator. This high-end product, generating around 10 crores in revenue, positions us for future success. This milestone aligns with our commitment to delivering innovative electrical solutions, reinforcing our stature as a frontrunner in the capital goods engineering domain.” 

About Salzer Electronics 

Salzer Electronics stands tall as a leading player in the realm of total and customized electrical solutions, with a robust presence in Industrial Switchgears, Wires & Cables, and Energy Management. Listed on both BSE (517059) and NSE (SALZERELEC), the company boasts the title of the largest manufacturer of CAM CAM-operated rotary switches & Wire Ducts in India. With four in-house manufacturing facilities located in Coimbatore, Salzer caters to a diverse range of products. 

A key strength of the company lies in its wide distribution network, both locally and globally, exporting to over 50 countries. In India, Salzer markets its products through its own distributors and leverages the expansive network of L&T, with more than 350 local distributors. 

Q2FY2024 Financials 

Salzer Electronics Limited reported a substantial YoY growth of 14.29%, with net revenue reaching Rs. 280.72 crore compared to Rs. 245.62 crore in Q2 FY23. This growth was propelled by heightened demand for key products like three-phase transformers, wire harnesses, relays, and innovative additions like contactors.  

The export contribution stood at 34.8%, experiencing an impressive YoY surge of 52.7%, driven by increased sales in key regions such as North & South America, the Middle East/Africa, Europe, and Asia. Notably, the EBITDA (excluding other income) saw a YoY growth of 4.51%, reaching Rs. 26.79 crore, with the EBITDA Margin for the quarter standing at a robust 9.54%. The Profit After Tax for Q2 FY24 recorded a YoY growth of 5.10%, totalling Rs. 10.10 crore compared to Rs. 9.61 crore in Q2 FY23, showcasing the company’s sound financial performance and strategic growth.

Read: How to Read Annual Report?

salzer revenue breakup

The company’s EBITDA (excluding other income) rose to Rs. 26.79 crore in Q2 FY24, reflecting a YoY growth of 4.51%. The EBITDA Margin for the quarter stood at an impressive 9.54%. Further adding to the financial prowess, the Profit After Tax reached Rs. 10.10 crore in Q2 FY24, marking a significant YoY growth of 5.10%. 

Business Highlights

  1. Industrial Switch Gear Division: This division, comprising LOW voltage products, witnessed a robust 9.2% YoY growth, contributing 56.4% to total revenues in Q2 FY24.The EBIDTA Margin in this business soared to 11.4% in Q2 FY24.
  2. Wire & Cables Division: The Wires & Cables business division, offering mid-voltage products, reported a spectacular 22.2% YoY growth in Q2 FY24. This division contributed 37.5% to total revenues.
  3. Building Products Division: Contributing 6.1% to the total revenue in Q2 FY24, this division includes products like Modular Switches, MCBs, Distribution Boards, and Changeovers.

salzer business overview

Key Strengths 

Salzer Electronics’ dominance in the electrical solutions arena is fortified by a set of key strengths: 

  • In-house manufacturing facilities ensuring better product development and customization. 
  • A robust R&D team driving continual product innovation. 
  • Market leadership in CAM-operated rotary switches. 
  • Strong customer relationships globally, with prestigious partnerships including GE, Schneider, and the Nuclear Power Corporation. 
  • Technical collaborations contributing to international certifications and universal acceptance. 

Conclusion

Salzer Electronics Limited stands at the pinnacle of innovation, financial brilliance, and industry leadership. With a patented masterpiece, stellar financials, and unwavering strengths, the company is not just navigating the currents of change; it is creating waves of success in the dynamic world of electrical solutions. As the future unfolds, Salzer Electronics is poised for even greater achievements, lighting up the path to a brighter tomorrow. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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