Revenue and Profit Growth
Salzer Electron's net sales have shown a robust upward trajectory, increasing from ₹584.35 crores in March 2020 to ₹1,418.33 crores in March 2025. This represents a compound growth trend reflecting the company's expanding market presence and operational scale. Correspondingly, the total operating income mirrored this growth, with no other operating income reported during this period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose from ₹66.78 crores in March 2020 to ₹133.90 crores in March 2025, indicating improved operational efficiency despite rising raw material and other expenses. The operating profit margin, however, showed some fluctuation, peaking at 11.43% in March 2020 and settling at 9.44% in March 2025, suggesting some margin pressure amid expanding scale.
Profit before tax increased significantly from ₹31.90 crores in March 2020 to ₹74.68 crores in March 2025, while profit after tax rose from ₹27.41 crores to ₹52.49 crores over the same period. The consolidated net profit followed a similar pattern, growing from ₹27.11 crores to ₹50.84 crores, underscoring steady bottom-line improvement. Earnings per share (EPS) also reflected this positive trend, climbing from ₹16.96 in March 2020 to ₹28.76 in March 2025.
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Cost Structure and Margins
The company’s raw material costs have risen in line with sales, from ₹436.91 crores in March 2020 to ₹1,082.96 crores in March 2025, reflecting the scale of operations and input price trends. Other expenses also increased steadily, reaching ₹163.52 crores in March 2025 from ₹60.03 crores in March 2020. Employee costs have grown moderately, indicating controlled labour expenses relative to revenue growth.
Despite rising costs, Salzer Electron maintained a gross profit margin around 7%, with a slight dip from 7.98% in March 2020 to 6.92% in March 2025. The profit after tax margin showed some variability, peaking at 4.69% in March 2020 and moderating to 3.7% in March 2025, which may reflect competitive pressures and cost inflation.
Balance Sheet and Financial Position
Salzer Electron’s total assets expanded from ₹616.68 crores in March 2020 to ₹1,179.76 crores in March 2025, driven by increases in both fixed assets and current assets. The net block of fixed assets rose from ₹216.61 crores to ₹308.61 crores, signalling ongoing capital investment. Current assets grew substantially, reaching ₹844.49 crores in March 2025, supported by rising inventories and sundry debtors, which increased to ₹367.73 crores and ₹405.48 crores respectively.
Shareholders’ funds strengthened from ₹310.04 crores in March 2020 to ₹543.95 crores in March 2025, reflecting accumulated reserves and retained earnings. The book value per share improved from ₹193.98 to ₹307.62 over the same period, indicating enhanced net worth per share.
However, the company’s total debt also increased from ₹174.03 crores to ₹417.87 crores, with both short-term and long-term borrowings rising. This suggests a higher leverage position, which investors should monitor carefully in the context of the company’s cash flow and debt servicing capacity.
Cash Flow Trends
Operating cash flow has been somewhat volatile, with negative cash flow from operations recorded in March 2025 at ₹-11 crores, contrasting with positive inflows in prior years. Investing activities consistently showed cash outflows, reflecting capital expenditure and investments, while financing activities provided significant inflows, particularly in the latest year, indicating reliance on external funding to support growth.
Closing cash and cash equivalents stood at ₹3 crores in March 2025, down from ₹17 crores in March 2023, highlighting tighter liquidity conditions that may warrant attention.
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Summary and Investor Considerations
Overall, Salzer Electron has exhibited commendable growth in revenue and profitability over the last six years, supported by steady capital investment and expanding shareholder equity. The company’s ability to increase net sales by more than twofold and nearly double its net profit highlights operational progress and market acceptance.
Nonetheless, margin pressures and rising debt levels suggest that investors should carefully evaluate the company’s cost management and leverage risks. The recent dip in operating cash flow and reduced cash reserves underline the importance of monitoring liquidity and working capital efficiency going forward.
For investors seeking exposure to the electrical equipment sector, Salzer Electron presents a growth story with improving fundamentals, but it is essential to weigh these positives against the challenges of margin compression and higher financial obligations.
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