Salzer Electronics slips after Q1 adjusted PAT drops 53% YoY
Revenue from operations rose 12.9% YoY and 5.0% QoQ to Rs 498.02 crore during the quarter. This growth was mainly driven by higher demand for Industrial switchgear, wires and Cable and Building products division businesses mainly due to high demand products like three phase transformers, wire harness, relays and new product like contactors etc.
Profit before tax stood at Rs 12.69 crore in Q1 FY27, down 47.7% YoY but up 3.2% QoQ.
EBITDA, excluding other income, declined 25.0% YoY but rose 0.2% QoQ to Rs 31.32 crore. EBITDA margin stood at 6.3%, down 318 basis points YoY and 30 basis points QoQ. The margin moderation was largely due to elevated raw material costs, particularly copper, silver and aluminium, amid continued volatility in global commodity markets. It is addressing the pressure through sourcing efficiencies, product mix optimisation, operational improvements and calibrated pricing measures.
On the cost front, total expenditure increased 16.9% YoY to Rs 466.70 crore. Raw material costs stood at Rs 398.65 crore, up 17.8% YoY. Employee costs increased 24.3% YoY to Rs 20.13 crore. Other expenses rose 7.3% YoY to Rs 47.92 crore. Finance costs remained broadly flat at Rs 12.06 crore, while depreciation and amortisation expenses increased 13.3% YoY to Rs 6.98 crore.
Segment-wise, the Industrial Switchgear division grew 10.3% YoY and contributed 53.6% to total revenue, with an EBITDA margin of 7.5% in Q1 FY27. The Wire & Cables division contributed 40.3% to revenue and grew 11.1% YoY, with an EBITDA margin of 5.2%. The Building Electrical Products division recorded the strongest growth of 48.0% YoY and contributed 6.1% to total revenue during the quarter.
Demand remained encouraging across the Industrial, Copper and Building Products divisions. The company said opportunities in power infrastructure, renewable energy, industrial automation, data centres and electrification continue to support the underlying demand environment.
During the quarter, Salzer Electronics invested an additional Rs 13.25 lakh in its wholly owned subsidiary Salzer EV Infra, taking its total investment to Rs 93.21 lakh. It also invested an additional Rs 1.69 crore in associate company Effilume, taking its total investment to Rs 4.24 crore and equity stake to 46.85%.
The company said it remains focused on opportunities in industrial automation, energy efficiency, smart infrastructure, renewable energy integration, railways, data centres and smart electrical ecosystems.
Salzer Electronics is a leading provider of total and customised electrical solutions across switchgear, wires and cables, and energy management. It is the largest manufacturer of CAM-operated rotary switches and wire ducts in India. The company operates four in-house manufacturing facilities in Coimbatore and serves domestic and international markets through a wide distribution network. In India, it sells through its own distributors and more than 350 local distributors of L&T. Its R&D team focuses on developing and commercialising product technologies and customised electrical solutions.
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