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Coimbatore based Salzer Electronics Ltd (SEL), which is into the manufacture of rotary switches, wires & cables, has entered into an agreement with US based C3Controls for the manufacture of contactors.
The company, in which the engineering giant L&T holds about 26 per cent stake, has also designed two new products for the Indian railways.
In a communication to the stock exchanges, SEL said that it has forged a strategic alliance with C3Controls, which was a prominent player in the electrical switch gear space in the US, for the manufacture of contactors. The product that had been developed was under validation with UL, which was a leading certification agency. The company had already commenced production and was targeting the US and Asia which are they key markets for this product.
SEL said it had also designed two products for the Indian Railways. While the fuse change over system was used in signalling, the track feed battery system was used for changing over the battery chargers in the track feeding system. The company has been accorded the ‘preferred supplier’ status by GE and Schneider for their international operations.
In the quarter ending March 31, 2015, SEL has posted net sales of ₹75.84 crore as against ₹64.13 crore in the corresponding quarter in the previous fiscal, an increase of 18 per cent. The net profit for the quarter was up by 72 per cent to ₹3.36 crore (₹1.95 crore) and the EPS was ₹3.27 (₹1.90).
For the full year 2014-25, the net sales stood at ₹276.22 crore (₹238.26 crore), a growth of 16 per cent and the net profit jumped by 42 per cent to ₹11.98 crore (₹8.44 crore). The EPS for 2014-15 was ₹11.65 (₹8.21), a 42 per cent increase.
The board has recommended a dividend of ₹1.50 per share (15 per cent).
D Rajesh Kumar, Joint Managing Director and CFO, SEL said because of the strong performance on the export front, the company’s topline had recorded a 16 per cent growth. He said in the forthcoming quarters SEL would focus `more on entering the eastern geographies and also expand our product offerings’. He expected the company to `grow at 25 per cent in the coming year’.
Shares of SEL closed at ₹230.20, down by ₹2.40, on the BSE.
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