Salzer Electronics slumps 3% on lower Q4 earnings, recommends 16% dividend

Profit After Tax at Rs6.99cr in Q4 FY21 as against Rs9.14cr in Q4 FY20.

Jun 16, 2021 03:06 IST India Infoline News Service

Salzer Electronics Limited has announced its audited financial results for the fourth quarter and year ended 31st March 2021.

Performance at a glance:
  • Strong quarterly growth in top line, reflecting Company’s resilience despite a sluggish domestic market
  • Revenue mainly driven by exports & New business
  • FY21 standalone Net Revenue at Rs605.62cr, growth of 6.82% yoy, growth mainly on account of higher sales of wire harness product & increased sales in wires & cables business
  • FY21 Standalone EBITDA at Rs61.79cr
  • Standalone FY21 PAT at Rs20.67cr
  • Board recommends dividend at 16%
  • Net Revenue in Q4 FY21 was Rs189.69cr as against Rs132.30cr in Q4 FY20, YoY growth of 43.38%, mainly on account of higher sales from our wires and cables business division as well as increase in sales of our wire harnesses products in our industrial switch gear division. 
  • Profit After Tax at Rs6.99cr in Q4 FY21 as against Rs9.14cr in Q4 FY20
Commenting on this, Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said, “This financial year started on a tough note, with the COVID-19 pandemic hampering business operations across the country and world. However, in lieu of the challenging conditions, I am glad to share that our fourth quarter performance has been in line with our expectations and reflects our continued & sustained recovery from the pandemic-induced slowdown.

In the fourth quarter of this financial year, we registered a 43.38% yoy growth in revenue at Rs189.69crs, while EBITDA and PAT were Rs16.16cr and Rs6.99cr, respectively. Strong demand for wire harness product and three phase transformers helped offset the impact of COVID in the initial months of the fiscal year. Despite slow recovery in demand, our revenue grew 6.82% yoy in FY21. Moreover, the fourth quarter performance was good with growth coming in from wire harness product and export markets such as the US. One of the challenges which remains is the input material price increase.

The lag between the passing off of input costs to customers has had bearing on the margins. As the Indian dealer and retail market picks up pace, and domestic as well as international markets gradually recover and business regains momentum, we expect to maintain our growth trajectory with our strong product offerings and brand position in the market.

Overall, we remain committed to our agenda of delivering sustainable growth and are cautiously optimistic about the business performance in the coming quarteRsI thank all our stakeholders for their continued support and faith in our Company and wish everyone good health.”

At around 3:15 PM, Salzer Electronics was trading at Rs155.90 apiece down by Rs4.65 or 2.9% on Sensex.

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