Salzer Electronics Limited reported strong growth in its unaudited financial results for Q2 and the half-year ending September 30, 2024. With a significant revenue increase of 22.6% YoY, reaching Rs. 344.23 crore for Q2 FY25, the company saw a substantial rise in profit after tax (PAT), which grew by an impressive 170% to Rs. 27.28 crore. The company’s net revenue for the half-year also rose, standing at Rs. 701.14 crore, marking a 23.1% increase compared to H1 FY24. Salzer Electronics attributes this growth to the increased demand in its Industrial Switchgear and Wires & Cables sectors, which has allowed it to strengthen its market presence domestically and internationally.

Surge in Industrial Switchgear and Export Revenue

Salzer Electronics’ Industrial Switchgear division saw a robust 34% YoY growth in Q2, contributing 61.6% to total revenues. This business’s growth was fueled by high-demand products like transformers, wire harnesses, and contactors. Additionally, export revenue, which contributed 29.15% to Salzer’s total Q2 revenue, grew by 3.1% due to increased demand from regions including North and South America, the Middle East, Africa, and various Asian countries.

The Wire and Cables division also performed strongly, recording a 10.2% YoY increase in Q2 and contributing 33.5% to the quarter’s revenue. This growth was driven by demand for low-voltage products such as enamelled wires and flexible bus bars.

Key Financial Metrics

• Net Revenue: Rs. 344.23 crore in Q2 FY25, marking a 22.6% YoY increase.
• EBITDA (Excluding Other Income): Rs. 35.31 crore, a 31.8% YoY growth, driven by high-margin switchgear sales.
• PAT: Rs. 27.28 crore in Q2, a dramatic rise of 170.1%.
• EBITDA Margin: Improved to 10.26% in Q2 FY25 from 9.54% in Q2 FY24.

Management Insights and Strategic Outlook

Rajesh Doraiswamy, Joint Managing Director of Salzer Electronics, highlighted the firm’s strategy of maintaining a balanced business mix to improve overall margins despite a slight economic slowdown in India. Doraiswamy noted the positive impact of decreasing raw material costs, which is expected to support further EBITDA margin improvements.

Salzer also received a notable Rs. 5 crore order for smart meters, which marks a strategic entry into India’s energy management sector. Doraiswamy expressed optimism over potential collaborations with other AMISPs, furthering Salzer’s mission to drive digital energy transformation through smart technology.

Expert Insight

Industry analysts consider Salzer’s growth trajectory a testament to its adaptability and diversified product offerings. With export contributions to revenue and high demand for electrical solutions, Salzer’s positioning in the global and domestic markets is poised for continued growth, particularly as India modernizes its energy infrastructure.

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