The shares of this wires and cables company plunged by approximately 15 percent on Monday’s trading session after the company published weak Q4 numbers, which led to a fall in the morale of investor sentiment.
With a market capitalization of Rs 1,721 crores, the stock of Salzer Electronics are currently trading at Rs 973 per share, down by 41 percent from its 52-week high of Rs 1,650 per share. Over the last five years, the stock has delivered a multibagger return of 1,425 percent.
Financial Highlights
Salzer Electronics reported a consolidated revenue of Rs 1,418 crores in FY25, up 21.61 percent from Rs 1,166 crores in FY24. On a year-on-year basis, Q4 revenue grew 15.01 percent to Rs 376 crores from Rs 327 crores in Q4 FY24. On a quarterly basis, revenue increased 10.26 percent from Rs 341 crores in Q3 FY25.
The company posted a net profit of Rs 52 crores in FY25, up 10.64 percent from Rs 47 crores in FY24. However, on a year-on-year basis, Q4 net profit declined 15.38 percent to Rs 11 crores from Rs 13 crores, and on a quarterly basis, it fell 26.67 percent from Rs 15 crores.
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During FY25, its industrial switchgear, wires & cables, and building electrical products segments have contributed 57.6 percent, 36.9 percent, and 5.5 percent respectively to its topline. It derives the majority of its revenue from India itself and caters to Asia (excluding India) and North & South America as its second and third largest market. It derives 27.40 percent of its revenue through exports.
As of FY25, its borrowing limit stands at an all-time high of Rs 395.56 crores, of which the majority share is occupied by short-term capital, signifying high working capital requirements. Its R&D expenses increased by 29.42 percent to Rs 15.53 crores from Rs 12 crores a year ago. Additionally, the company has announced a dividend of Rs 2.50 per equity share, subject to the approval of the shareholders at the AGM.
Salzer Electronics Limited has industry associations in the production and distribution of an assortment of electrical products, including rotary switches, wiring ducts, copper wires, and cables. Its range covers industrial components, control panels, motor control products, transformers, sensors, and relays up to smart home devices like Wi-Fi switches. Other items sold by the company include enameled copper wires, flexible busbars, and energy-saving panels through conventional off-line and even online channels.
Written by Satyajeet Mukherjee
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