This Electrical Equipment & Component stock, specialized in electrical solutions across switches, wires & cables, and energy management, has secured an order for Smart Energy Meters from Advanced Metering Infrastructure Service Providers (AMISP).
Stock Price Movement:
Salzer Electronics Ltd., with a market capitalization of Rs 1,603 crore as of Monday, saw its stock reach a day high of Rs 943.5 before retreating to Rs 908.5 per share, marking a 5% gain from its previous close of Rs 865.85.
What Happened:
Salzer Electronics Ltd. has secured a significant order worth Rs 50 crore for smart energy meters from a leading Advanced Metering Infrastructure Service Provider (AMISP) in India. This follows an initial Rs 5 crore order received in the previous quarter from the same customer, reinforcing confidence in Salzer’s smart metering solutions and manufacturing capabilities.
With an annual production capacity of 4 million smart meters, the company is well-equipped to cater to the rising demand in India’s energy sector. This milestone aligns with Salzer’s strategic vision to support the nation’s smart metering initiatives and enhance energy management efficiency.
Joint Managing Director D. Rajesh Kumar highlighted the company’s role in the Government of India’s Revamped Distribution Sector Scheme (RDSS), which aims to modernize the power sector with advanced smart solutions. He emphasized that this order reflects Salzer’s commitment to maintaining high-quality standards in smart metering technology. The company remains dedicated to updating stakeholders on further business milestones and continued growth in this sector.
Financials:
In Q3 FY25, the revenues grew by percent to Rs 341 crores compared to Rs 270 crores in Q3 FY24. The net profit increased to 23 percent, Rs 16 crores compared to Rs 13 crores. The operating margin remained flat at 11 percent. The EBITDA rose to 16 percent at Rs 36 crores compared to Rs 31 crores in Q3 FY24.
Revenue breakup according to business wise: The Industrial Switchgear business contributed 61 percent of Q3 revenue and 58 percent in 9M, recording a 42 percent year-on-year growth in Q3 and 32 percent in 9M, with EBITDA margins at 14 percent and 13 percent, respectively.
The Wire & Cables division accounted for 32 percent of Q3 revenue and 36 percent in 9M, growing 6 percent in the quarter and 17 percent over nine months, with margins at 7 percent and 6 percent.
The Building Products segment contributed 7 percent to Q3 revenue and 5 percent in 9M. On the export front, the company witnessed a 60 percent year-on-year increase in Q3, with exports contributing 31 percent of total revenue.
Sales in Asian markets surged 92 percent, followed by 36 percent growth in Europe and 25 percent in the Americas. With steady demand across segments, Salzer Electronics remains optimistic about its growth trajectory.
About the Company:
Incorporated in 1985, Salzer Electronics Limited is a leading player in total and customized electrical solutions across switches, wires & cables, and energy management. It is India’s largest manufacturer of CAM-operated rotary switches and wire ducts. The company operates four in-house manufacturing facilities in Coimbatore and has a strong R&D team focused on innovation. With a wide distribution network in India and global exports, Salzer continues to provide cutting-edge electrical solutions to its customers.
Written by Shashi Kumar
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