Salzer Electronics Ltd

Salzer Electronics Ltd – Trading Window closed from Oct 01, 2026 for Promoters/Promoters Group/Directors/KMP/Designated Employees and their immediate relatives until 48 hours after the declaration of un-audited financial results for the Second quarter / Six months ending 30.09.2026.

AGM Details

• 41st AGM held on 12 September 2026 at 11:30 AM via VC/OAVM.

Key Resolutions

• Adoption of standalone and consolidated financial statements for year ended 31 March 2026.
• Declaration of dividend on equity shares.
• Reappointment of N. Rangachary as director (retiring by rotation).
• Reappointment of V. Sankaran as director (retiring by rotation).
• Re-appointment of D. Rajesh Kumar as Joint Managing Director for five years from Oct 1, 2026.
• Ratification of remuneration to Cost Auditor for FY 2026-27.

Voting Results

• Resolution 1: Passed; in-favour ~99.9%, against ~0.1%.
• Resolution 2: Passed; in-favour ~99.99%, against ~0.01%.
• Resolution 3: Passed; in-favour ~99.87%, against ~0.13%.
• Resolution 4: Passed; in-favour ~99.87%, against ~0.13%.
• Resolution 5: Passed; in-favour ~99.73%, against ~0.26%.
• Resolution 6: Passed; in-favour >99.9%, against negligible.

Dividend

• Dividend on equity shares declared; amount per share not disclosed.

Director Changes

• N. Rangachary reappointed as director (retiring by rotation).
• V. Sankaran reappointed as director (retiring by rotation).
• D. Rajesh Kumar reappointed as Joint Managing Director for five-year term from Oct 1, 2026.

Auditor Appointments

• Cost Auditor remuneration approved for FY 2026-27.

Related Party Transactions

• Votes by related parties totaling 1,947,923 shares excluded from consideration.

AGM details

• Date: 12 September 2026; Time: 11:30 AM; Mode: VC/OAVM.
• Venue: Deemed venue at registered office, Coimbatore.
• Quorum present; meeting ran 11:30 AM–1:08 PM; e-voting closed 1:23 PM.

Ordinary resolutions

• Adoption of standalone and consolidated financial statements for FY 2025-26 — Passed (subject to Scrutinizer's Report).
• Dividend declaration of Rs 2.50 per equity share — Passed (subject to Scrutinizer's Report).
• Re-appointment of N Rangachary as director on rotation — Passed (subject to Scrutinizer's Report).
• Re-appointment of V Sankaran as director on rotation — Passed (subject to Scrutinizer's Report).

Special resolutions

• Re-appointment of D Rajesh Kumar as JMD for five years from Oct 1, 2026 — Deemed passed.
• Remuneration for A R Raja, Cost Auditor, FY 2026-27 — Passed.

Directors & Auditors

• D Rajesh Kumar to continue as Joint Managing Director for five-year term.
• A R Raja Cost Auditor remuneration ratified for FY 2026-27.

AGM Details

• 41st AGM scheduled Sep 12, 2026 at 11:30 IST via VC/OAVM.
• Cut-off date to vote on resolutions: Sep 4, 2026.
• Record date for dividend eligibility: Aug 28, 2026.
• Remote e-voting opens Sep 7, 2026 09:00 IST; closes Sep 11, 2026 17:00 IST.
• AGM is conducted through VC/OAVM; deemed venue: registered office.

Key Resolutions

• Ordinary: Adoption of standalone and consolidated financial statements.
• Ordinary: Dividend on equity shares.
• Special: Re-appointment of N. Rangachary as Director liable to rotation.
• Special: Re-appointment of V. Sankaran as Director liable to rotation.
• Special: Re-appointment of D. Rajesh Kumar as Joint Managing Director for five years from Oct 1, 2026; remuneration.
• Special: Ratification of Cost Auditor remuneration for 2026-27.

Dividend

• Dividend proposed: Rs 2.50 per equity share.

Director Changes

• N. Rangachary re-appointed as Director (non-exec, non-independent) liable to rotation.
• V. Sankaran re-appointed as Director (non-exec, non-independent) liable to rotation.

Auditor Appointments

• Cost Auditor remuneration: Rs 1,90,000 per annum; ratification sought.

Financial snapshot

• Standalone revenue from operations: Rs 1,715.19 cr, up 24% YoY.
• Consolidated revenue from operations: Rs 1,758.38 cr, up 24% YoY.
• Standalone EBITDA: Rs 141.43 cr; margin 8.25%.
• Standalone PAT: Rs 53.83 cr; down from Rs 62.25 cr.
• Consolidated PAT: Rs 53.78 cr; up 2% YoY.
• EPS (Basic): Rs 30.44 per share.
• Final dividend: Rs 2.50 per equity share; total cash outflow Rs 4.42 cr.
• Record date for dividend: 28 Aug 2026.
• Consolidated borrowings: Rs 53,144.35 lakh; gearing 0.46x.
• Cash & equivalents: Standalone Rs 205.25 lakh; Consolidated Rs 428.54 lakh.

Segment performance

• Industrial Switchgear revenue Rs 961.47 cr, up 21%; 56% of standalone revenue.
• Industrial Switchgear EBITDA margin 11.37% (slightly below prior 11.82%).
• Wires & Cables revenue Rs 666 cr, up 30%; 39% of total.
• Building Products revenue Rs 87 cr, up 9%; ~5% of standalone.
• Exports declined ~10%; exports 21% of total; Asia and North America key markets.
• Three-Phase Transformers grew 46%; Custom Control Panels +38%; Sensors +30%.
• Overseas venture SEAL: 100% owned; capex Rs 10 cr; operations by FY27.
• Energy management/Smart Meter focus: RDSS opportunities, EMS via Effilume; 192 cr project.
• Data center/EV infra demand improving; company positioned for growth.

Geography & exports

• Domestic revenue share: Rs 1,53,833.62 lakh; Exports: Rs 22,004.34 lakh.
• RDSS program extension to install ~25 crore smart meters by 2028.
• Asia and North America remain top export destinations.
• Smart metering, power distribution, and data centers drive export opportunities.

Dividends & capital actions

• Final dividend of Rs 2.50 per share; total cash outflow Rs 4.42 cr.
• Record date fixed for dividend: 28 Aug 2026; dividend paid electronically.
• No buybacks or new equity issues in FY26.
• SEAL venture capex Rs 10 cr; Saudi facility to commence by H2 FY27.

Balance sheet & liquidity

• Net debt (consolidated) Rs 51,097.19 lakh; gearing 0.46x.
• Consolidated cash & cash equivalents Rs 2,047.0 lakh.
• Credit rating reaffirmed: CRISIL A/Stable (long term) and A1 (short term).

Governance & risk management

• Board comprises eight directors; includes woman Independent Director.
• Audit Committee met five times in year; Chair: Priya Bhansali.
• Secretarial audit flagged: 3 observations; management actions underway.
• Whistle Blower policy in place; no complaints received in FY26.

CSR & ESG

• CSR obligation for FY26: Rs 96.65 lakh; actual spend Rs 97.47 lakh; excess Rs 0.82 lakh.
• CSR expenditure for the year: Rs 97.47 lakh; CSR policy on the website.

Outlook & risks

• Outlook: healthy order pipeline; RDSS rollout extended to 2028, large-scale smart meter deployment.
• Geopolitical and commodity price volatility (copper/silver) risk; diversification and hedging strategy.
• Saudi Arabia facility aims to strengthen Middle East footprint; data center and EV-charging growth expected.

Financial Performance

• Q1 FY27 revenue rose 13% to INR 498 crores.
• EBITDA (excl. other income) stood at INR 31 crores; margin 6%.
• PAT was INR 8 crores; PAT margin 2%.
• Export revenue share near 19% in Q1 FY27.
• Industrial Switchgear contributed 54% of revenue; Building Products 6%.
• Kaycee top line grew 8% YoY; Kaycee EBITDA INR 2 crores; PAT INR 1 crore.

Segment Update

• Kaycee Industries grew 8% YoY; EBITDA INR 2 crores; PAT INR 1 crore.
• Export share about 19% signals diversification.
• Switchgear capacity utilization around 80–85%; Wire & Cable around 65%.
• Annuity revenue from energy management starts mid-August.

Outlook and Guidance

• FY27 EBITDA margin guidance 8%–8.5%.
• Q3–Q4 margins expected 9%–9.5%.
• Full-year EBITDA margin around 8%.
• Annuity revenue starts mid-August; about INR 2 crores per month.
• Saudi plant revenue in FY28 around INR 25 crores.

Capex and Growth Initiatives

• FY27 maintenance capex around INR 15–16 crores.
• Saudi plant capex and Hosur expansion planned.
• Next-year capacity expansion capex for Switchgear; no major capex for Wire & Cable this year.
• LK distribution channel about 15% of revenue; marketing team around 65 people.

Q&A Highlights

• Price increases in April, June, and August; pass-through lag.
• Pass-through targeted within two months; commodity hedging generally avoided.
• Tamil Nadu smart-meter tender canceled; future tenders expected.
• EV charging: about 60 chargers in Q2; 160–170 installed countrywide.
• Marketing team around 65 people; LK channel ~15% of revenue.

Meeting Details

• Event: Earnings Call for Q1 2006 results.
• Mode: audio recording hosted by Salzer Electronics Ltd.
• Period: quarter ended June 30, 2006.

Participants

• Key company participants: Company Secretary & Compliance Officer.

Purpose

• Purpose: discuss financial results for the first quarter ended June 30, 2006.

Additional Notes

• Recording is available on the company website.