Salzer Electronics Ltd ( Only information no buy or sell recommendation)
👉Five manufacturing units located in Tamil Nadu
👉Five manufacturing units located in Tamil Nadu
✍️Business segements-
1-Industrial switch gear Division -the legacy products of Company.( B2B)
Customers- GE, Schneider, EATON, ABB and Honeywell and company is a preferred supplier to GE, Schneider, and only approved supplier of Nuclear Power Corporation and the largest
1-Industrial switch gear Division -the legacy products of Company.( B2B)
Customers- GE, Schneider, EATON, ABB and Honeywell and company is a preferred supplier to GE, Schneider, and only approved supplier of Nuclear Power Corporation and the largest
supplier of rotary and load break switches to Indian Railways
✍️The Products under this basket-
-Cam Operated Rotary Switches
- Load Break Switches
- Toroidal Transformers, Relays,
-Wire Harness,
- Three Phase Dry Type Transformers
✍️The Products under this basket-
-Cam Operated Rotary Switches
- Load Break Switches
- Toroidal Transformers, Relays,
-Wire Harness,
- Three Phase Dry Type Transformers
- Contactors, Over Load relays & MCB's etc
Read about Dry Type of Transformer and its advantages ( Many manufactures in india)
Just for information Salzer is Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share
Read about Dry Type of Transformer and its advantages ( Many manufactures in india)
Just for information Salzer is Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share
Receives patent for ‘Integral Cam Operated
Rotary Switches’ for a duration of 20 years,
ending 2031
Read about Toroidal transformers
Rotary Switches’ for a duration of 20 years,
ending 2031
Read about Toroidal transformers
2-Wires and cables Division ( B2B)-Company manufactures a wide range of Industrial wires & Cables from 0.5 sq mm to 300 sq mm - Building Wires, Flexible wires, Multi Core Cables, Flat cables, Traveling cables, Lan Cables Shielded & Braided Wires etc.,
👉Schneider is one of the most valued customers for these products.
3-Building Products Division ( B2C)This is the only segment where Company has been operating on a B2C basis.
👉 The Portfolio under this Segment involves
- Distribution Boards,
3-Building Products Division ( B2C)This is the only segment where Company has been operating on a B2C basis.
👉 The Portfolio under this Segment involves
- Distribution Boards,
- Modular Switches & Speciality Switches,
-Movement Sensors
-Remote Switches, Single Phase Motors Switches,
-House Wires, MCB's
4-Energy management -This division is Street Light Management System and this business is an order driven busines.
-Movement Sensors
-Remote Switches, Single Phase Motors Switches,
-House Wires, MCB's
4-Energy management -This division is Street Light Management System and this business is an order driven busines.
✍️Other Business
1- joint venture company named Salzer Kostad EV Chargers Pvt Ltd, with an Austria-based company Kostad Steuerungsbau GmbH (Kostad).
The JV Company is engaged in the business of manufacturing of DC Fast charging stations for electrical Cars, Trucks & Buses, and
1- joint venture company named Salzer Kostad EV Chargers Pvt Ltd, with an Austria-based company Kostad Steuerungsbau GmbH (Kostad).
The JV Company is engaged in the business of manufacturing of DC Fast charging stations for electrical Cars, Trucks & Buses, and
, Salzer will hold 26% equity and Read comment of m/m
👉 we are almost through with building an indigenously built DC fast chargers, which will bring the cost of the DC chargers down by at least 30% compared to what the European or American prices are today.
👉 we are almost through with building an indigenously built DC fast chargers, which will bring the cost of the DC chargers down by at least 30% compared to what the European or American prices are today.
2- Salzer EMarch Electromobility Pvt. Ltd., in association with EMarch LLP - This JV is engaged in manufacturing electric conversion kits for auto rickshaws, cars and buses and also in the manufacture of novel electric driven utility vehicles ,Salzer hold 26% equity
According to m/m cost of kits is at present is beyond 2.5 lakhs, which is not a saleable product as of now. So, we they are trying to rework on the design and see cost.
3-Kaycee ind- Listed company with mcap of 53 cr , Salzer hold almost 75% equity
✍️Last q Sales
- Industrial Switchgear – 57.61% of net revenues
- Wires & Cables – 34.15%
- Building Electrical Products – 8.25%
-Energy Management – No tenders issued by Government
✍️Last q Sales
- Industrial Switchgear – 57.61% of net revenues
- Wires & Cables – 34.15%
- Building Electrical Products – 8.25%
-Energy Management – No tenders issued by Government
Q2 Highlights
👉q2 Domestic 75% , Export 25%
👉Export grew by18.3% YoY in Q2 FY23 - higher exports to Middle East Africa, North & South America and Europe
👉Strong demand for ind. switchgear products -Toroidal Transformers, Three phase Transformers, LAN Cables, Sensors, & MCB
👉q2 Domestic 75% , Export 25%
👉Export grew by18.3% YoY in Q2 FY23 - higher exports to Middle East Africa, North & South America and Europe
👉Strong demand for ind. switchgear products -Toroidal Transformers, Three phase Transformers, LAN Cables, Sensors, & MCB
Some Positive Comments from concall
👉Good Growth from high demand products like toroidal transformers, three phase transformers, LAN cables, sensors, and MCBs.
👉strong demand, especially for three phase dry type transformers, particularly from the sectors of renewables and
👉Good Growth from high demand products like toroidal transformers, three phase transformers, LAN cables, sensors, and MCBs.
👉strong demand, especially for three phase dry type transformers, particularly from the sectors of renewables and
machine tool industry
👉Raw material prices also have begun to stabilize
👉m/m expect Kaycee also to grow at 30 to 35% level in the coming quarters.
👉preferential warrants to promoters at an issue price of Rs. 278.5 ( Promotors holding will be 38% from 32%)
👉Raw material prices also have begun to stabilize
👉m/m expect Kaycee also to grow at 30 to 35% level in the coming quarters.
👉preferential warrants to promoters at an issue price of Rs. 278.5 ( Promotors holding will be 38% from 32%)
👉our idea is to make Kaycee definitely a
100 Crore’ company in the next two years at least
👉 we are also adding new products, adding
new customers for the last 1, 2 years and we continue to do that,So, these things will all come into revenues in the next two or three quarters
100 Crore’ company in the next two years at least
👉 we are also adding new products, adding
new customers for the last 1, 2 years and we continue to do that,So, these things will all come into revenues in the next two or three quarters
👉wire harness business alone, even for the industrial market, it can be Rs 100-150 crore market I think the wire harness business for the two-wheeler, EV two-wheelers and charging infrastructure, all is going to be an additional business and we are looking at that space.
We are setting up separate lines for that
and we are getting ready for that.
👉 we still continue to grow at 20-25% in each businesses.
👉m/m expects 18-20% EBITDA levels for the charging space at EV chargers.
👉Our target internally is to reach at least 18% ROCE.
and we are getting ready for that.
👉 we still continue to grow at 20-25% in each businesses.
👉m/m expects 18-20% EBITDA levels for the charging space at EV chargers.
👉Our target internally is to reach at least 18% ROCE.
👉In March, we were at net working capital of around 145 days, we have reduced that now to around 127 days in Q2 , I think we can go down by another 20-25 days.
SO WHAT CAN GO RIGHT FOR SALZER
👉With increased industrial activity, demand for electricity will rise which in
SO WHAT CAN GO RIGHT FOR SALZER
👉With increased industrial activity, demand for electricity will rise which in
turn drives the demand for switchgear products in both domestic and export markets
👉Gradual pick up in the LAN (local area network) cable business and continued demand from the agriculture sector for wires and cables .
👉The acquisition of Kaycee helped Salzer to expand its
👉Gradual pick up in the LAN (local area network) cable business and continued demand from the agriculture sector for wires and cables .
👉The acquisition of Kaycee helped Salzer to expand its
footprint into railways and provided access to a pan-India dealer network , so railway capex can be growth trigger.
What Can Go wrong-
- Increase in working capital( Right now working capital debt is around 235 Cr)
- Global recession
- increase RM price
What Can Go wrong-
- Increase in working capital( Right now working capital debt is around 235 Cr)
- Global recession
- increase RM price
Some More interesting point
-air cold dry type transformer- major applications are renewables , locomotives like the train application, railway applications, UPS and market size was 2500cr in 2017-18 with salzer is having sales of 50cr annually.
-air cold dry type transformer- major applications are renewables , locomotives like the train application, railway applications, UPS and market size was 2500cr in 2017-18 with salzer is having sales of 50cr annually.
Read about Dry type of transformer
Salzer - new capex will start production by march
Salzer electronics- good results not great results , PBT almost flat qoq
Loading suggestions...