During Thursday’s trading session, the shares of a company engaged in manufacturing and EPC services surged nearly 7 percent to Rs. 14.73 on BSE, after a Board meeting is scheduled to consider and approve the proposed amalgamation.
With a market cap of Rs. 2,407 crores, at 02:26 p.m., the shares of Salasar Techno Engineering Limited were trading in the green at Rs. 13.93, up by 1 percent, as against its previous closing price of Rs. 13.79.
What’s the News:
As per the latest regulatory filings with the stock exchanges, Salasar Techno Engineering Limited has scheduled a Board meeting to consider and approve the proposed amalgamation.
The meeting is scheduled to be held on Monday, 30th December 2024, at 05:00 PM, to consider and approve the proposed merger of Hill View Infrabuild Limited with Salasar Techno Engineering Limited.
Financials:
Salasar Techno reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 2.2 percent, rising from Rs. 275.4 crores in Q2 FY24 to Rs. 281.5 crores in Q2 FY25.
Similarly, the company’s net profit increased from Rs. 9 crores to Rs. 9.7 crores over the same period, representing a slight growth of around 7.8 percent YoY.
EBITDA for Q2 FY25 also increased by about 3 percent YoY to Rs. 25.6 crores, up from Rs. 24.9 crores in Q2 FY24.
Order Book:
As of 30th September, Salasar Techno has a strong and diversified order book valued at Rs. 2,388 crores, providing strong revenue visibility. In addition to this, the company consistently receives monthly telecom tower orders worth around Rs. 30-35 crores.
In Nepal, the company is actively engaged in a substantial project with the Nepal Electricity Authority (NEA), valued at ~Rs. 144 crores, focusing on the development of distribution lines.
In Rwanda, Salasar Techno has successfully secured an order worth Rs. 78 crores with the Energy Development Corporation Limited (EDCL) for a transmission line project.
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Management Guidance:
The company’s top line and bottom line are expected to grow at a CAGR of at least 20% over the next few years. This growth projection is supported by a robust order book in the Transmission and Distribution sector, along with operations in the Supply of Monopoles and Heavy Steel Structure Division.
Salasar Techno anticipates consistent monthly orders in the range of Rs. 30-35 crores for telecom towers. The company remains optimistic about its future, driven by a strong order book valued at Rs. 2,388 crores. This encompasses domestic and international EPC orders, monopoles, projects under the Heavy Steel Structure Division, and export orders for telecom towers and poles.
The company is committed to fulfilling its long-term debt obligations as per the repayment schedule. This approach is expected to significantly reduce debt and further strengthen Salasar Techno’s financial position.
Stock Performance:
The stock has delivered positive returns of nearly 6 percent in one year, while around 26.5 percent of negative returns in the last six months. So far in 2024, the share of Salasar Techno has given positive returns of about 4.7 percent.
About the Company:
Established in 2001, Salasar Techno Engineering Limited is engaged in the business of manufacturing and sale of Galvanized Steel Structures including Telecom Towers, Transmission Line Towers and Solar Panels.
The company is also engaged in the execution of Engineering, Procurement and Construction projects (EPC) for survey, supply of materials, design, erection, testing & commissioning on a turnkey basis.
Written by Shivani Singh
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