Q1 2027 Salzer Electronics Ltd Earnings Call Transcript
Key Points
- Revenue grew 13% year-on-year to Rs. 498 crores, driven by strong demand in wires and cables, building products, and new products like contactors.
- Building Products division saw a significant 48% year-on-year growth, contributing 6% to total revenue.
- Export share stood at approximately 19% of revenue, with a medium-term target to increase it back to 25%.
- KC Industries, a subsidiary, continues to perform well with 8% year-on-year top-line growth and positive EBITDA and PAT.
- The company has a strong long-term track record with a 23% revenue CAGR over the last five years and a 20% PAT CAGR.
- EBITDA margin contracted to 6% from 9.5% in the previous year, primarily due to elevated and volatile raw material costs (copper, silver, aluminum).
- Profit after tax declined to Rs. 8 crores from Rs. 17 crores year-on-year, reflecting significant margin pressure.
- Management revised its FY27 EBITDA margin guidance down to 8-8.5% from an earlier target of 10%, citing continued margin pressure in Q2.
- The smart meter business remains a drag on the balance sheet with no major updates and pending orders awaiting customer clearance.
- The Saudi Arabia plant commissioning has been delayed due to West Asia disruptions, pushing revenue contribution to FY28.
Ladies and Gentlemen, good day and welcome to Salzer Electronics Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing then 0 on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K Raman, Chief Financial Officer from Sagler Electronics Limited.
Thank you and over to you sir.
Good morning everyone and thank you for joining us today to discuss the unaudited financial performance for the first quarter year ended 30th June 2026. I have with me Mr. Rajesh Kumar Doriswani, Joint Managing Director, Mr. Siva Kumar, Assistant Vice President, Marketing, Mr. Bellary, Assistant Vice President, Business Development, Mrs. Menaka, General Manager, Accounts, and Mr. K.M. Murgesh, Company Secretary, and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
