Salasar Techno Engineering Limited has informed the Exchange about Investor Presentation
Salasar Techno Engineering Limited
Dated: 28.05.2023
To,
The Manager – Listing National Stock Exchange of India Ltd. Exchange Plaza, BandraKurla Complex Bandra East Mumbai – 400051 Symbol – SALASAR
The Secretary Corporate Relationship Dept. BSE Limited P.J.Tower, Dalal Street, Mumbai – 400001 Scrip Code: 540642
Sub.: - Earnings Release & Shareholders Letter
Dear Sir/Madam,
Please find attached herewith Earnings Release & Shareholders Letter of the Company w.r.t. Financial Results of the Company for quarter and Year ended 31st March, 2023, for your record and further dissemination.
Kindly take the same on record.
Thanking You,
Yours Sincerely
For Salasar Techno Engineering Limited
Alok Kumar (Managing Director) DIN:01474484
CIN No. - L23201DL2001PLC174076
Unit 1- Khasra 265, 281-283, Parsaun-Dasna, Jindal Nagar, Distt. Hapur-201313 Unit 2- Khasra 1184, 1185, Khera, Pilkhuwa, Tehsil Dhaulana, Distt. Hapur-245304
Unit 3- Khasra 686/6, Khera, Pilkhuwa, Tehsil Dhaulana, Distt. Hapur-245304 Office- KL-46, Kavi Nagar, Ghaziabad-201002 Regd. Office- E-20, South Extension 1, New Delhi-110049 www.salasartechno.com
+91 8938802180, 7351991000 +91 120 6546670 Fax: +91 11 45823834
towers@salasartechno.com marketing@salasartechno.com
EARNINGS RELEASE & SHAREHOLDERS’ LETTER
Q4 FY23 & FY23 MAY 27, 2023
In This Report, We Cover
1. About Salasar
5. Financial Highlights
2. What Salasar Does?
6. What Next?
3.
4.
Salasar’s Strengths
7.
Business Update
Key Financial
Performance
8. Management Commentary
ABOUT SALASAR TECHNO ENGINEERING (STEL)
q Established in the year 2006, STEL started its operations as a telecom tower manufacturer.
q Decided to expand its horizon and aspired to become a one-stop solution for India’s Infrastructure sector. STEL commenced manufacturing customized, large & heavy steel structures, and provide EPC solutions to a diverse range of industries including Telecom, Railways, Transmission & Distribution, and many others by carrying out engineering, designing, procurement, fabrication, galvanization, and strengthening under one roof.
q Has 3 state-of-the-art manufacturing facilities having manufacturing capacity of 1,15,000 MTPA equipped with cutting edge technologies, In-House IIT certified designs, and time tested Ramboll designs and tools to enhance its capabilities.
WHAT STEL DOES ?
Processes Undertaken
Manufacturing
Contractual Galvanizing
Strengthening
Designing
EPC Projects
Fabrication
Products Produced & Industries Catered to
Power
§
§
§
§
Transmission Line Towers
Substation Structures
Transmission Line Monopoles
Railway Electrification Structure
Telecommunications
§
§
§
Towers and Monopoles
Cells on Wheels
Accessories
Heavy Steel Structure
§
§
§
Bridges
Buildings
Heavy & Complex Structures
Renewables Solar Module Mounting Structure
Solar Trees
Solar Water Pumps
Windmill Tower
Poles Lighting Poles
Distribution Poles
Infrastructure Poles
§
§
§
§
§
§
§
Smart City Solutions §
Smart City Poles
§
Camouflaging Solutions
STEL’s STRENGTHS
q PAN India presence and exports to 25+ countries including West Africa, East Africa, Central
Africa, Philippines, Saudi Arab, Nepal, Myanmar, and many more.
q Served to over 600+ clients and customers, supplied 50,000+ Telecom Towers, Laid ~702 KMs of Power Transmission Lines, Laid ~588 Railway Track KMs, indicating its strong presence, relationship, and capability to bag orders.
q A one stop infrastructure solutions company with strong presence in diversified industries,
playing key role in the development of modern India.
q Strategic locational advantage allows it to procure best quality raw materials in line with
stringent industry standard.
q Boasts of having zero defect production, shortest delivery production, and the ability to ramp
up operations in minimum time anywhere.
q Certified by CORE and is an approved vendor of PowerGrid Corporation Limited.
q As of 31st March 2023, STEL has a strong diversified order book worth Rs. 15,220 Mn. providing
strong revenue visibility
Particulars (Rs. Mn.)
Value
Domestic EPC Orders
International EPC Orders
Orders under Heavy Steel Structure Division
Monopoles
Exports orders (Telecom Towers and Poles)
TOTAL orders as on 31st March 2023
₹ 11,790
₹ 1,430
₹ 1,150
₹ 850
₹ 300
₹ 15,220
Over and above the current order book, STEL has regular monthly orders of telecom towers worth ~Rs. 30-35 Crore.
q Our substantial and diverse clientele consists of major players like:
Telecom Sector
Power Sector
Others/EPC
Airtel
Indus Towers
Tower Vision
HUAWEI
KEC
Adani
Tata Projects
BHEL
UPPTCL
Indian Railways Jharkhand Urja Sancharan Nigam Limited OPTCL
American Towers
Welspun Energy
HVPN
Jio
ERICSSON
HFCL Group
APB
Power Grid
Larsen & Toubro
Sterlite
AEGCL Kendriya Rail Vidyutikaran Sangathan Power Corporation
KEY CONSOLIDATED FINANCIAL PERFORMANCE SNAPSHOT:
Figures in Rs. Mn.
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
-
Q4 FY22 v/s Q4 FY23
2,946.96
2,122.75
7.56%
3.36%
160.46
Q4 FY22
71.34
10.13%
4.97%
298.51
147.31
Q4 FY23
Revenue
EBI TD A
PAT
EBI TD A Margins
PAT Margins
FY22 v/s FY23
9.59%
10,048.95
7,188.62
4.48%
689.31
314.57
FY22
9.14%
4.00%
918.12
402.54
FY23
Revenue
EBI TD A
PAT
EBI TD A Margins
PAT Margins
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Continuously focusing on improving return ratios by reducing leverage
RoCE (%)
Debt to Equity
18.60%
18.55%
18.50%
18.45%
18.40%
18.58%
18.51%
1.00
0.90
0.80
0.70
0.60
0.50
0.88
0.68
FY22
FY23
FY22
FY23
Segment Revenue Distribution FY22
18.00%
5.00%
77.00%
Steel Structures
EPC from railways
EPC from Power Transmission
Segment Revenue Distribution FY23
19.00%
15.00%
66.00%
Steel Structures
EPC from railways
EPC from Power Transmission
CONSOLIDATED FINANCIAL STATEMENT HIGHLIGHTS
CONSOLIDATED INCOME STATEMENT
Particulars ( Rs. Mn.)
Q4 FY23 Q4 FY22
YoY (%) Q3 FY23
FY23
FY22
Revenue from operations
2,946.96 2,122.75
38.83%
2,407.98
10,048.95 7,188.62
Other income
16.29
4.40
1.36
23.99
22.28
Total revenue
2,963.24 2,127.15
39.31%
2,409.34
10,072.94 7,210.90
Total expenses excluding depreciation, amortization, and finance cost
2,648.45 1,962.30
34.97%
2,167.41
9,130.83 6,499.31
EBITDA
298.51
160.46
86.04%
240.57
918.12
689.31
EBITDA Margin %
10.13%
7.56%
257 bps
10.00%
9.14%
9.59%
Depreciation & Amortization
21.75
17.12
19.85
79.50
70.97
Finance Cost
94.46
60.89
78.15
315.61
218.10
Exceptional Item
(6.45)
0.00
0.00
(6.45)
0.00
Tax Expense
PAT
Other comprehensive income
Net PAT
PAT Margin %
Diluted EPS
44.82
15.50
37.00
138.01
107.95
147.31
71.34
106.50%
106.93
402.54
314.57
(0.79)
7.26
0.00
(0.79)
7.26
146.52
78.60
106.93
401.75
321.83
4.97%
3.36%
161 bps
4.44%
4.00%
4.48%
0.48
0.25
0.36
1.33
1.14
CONSOLIDATED BALANCE SHEET
Particulars (Rs. Mn.)
31.03.23 31.03.22
Particulars (Rs. Mn.)
31.03.23
31.03.22
Assets
Non-Current Assets
Property, Plant & Equipment
1,592.16 1,249.15
Capital Work in Progress Right of Use Asset Intangible Assets Investments Other Financial Assets Other Non-Current Assets
214.09 126.01 2.91 0.00 147.83 37.63
55.19 8.83 3.56 0.00 232.07 104.51
Total Non-Current Assets
2,120.63
1,653.31
Current Assets Inventories Investments Trade Receivables Cash & Cash Equivalents Bank Balance other than Cash Other Financial Assets Other Current Assets Current Tax Assets (Net)
0.52
2,627.44 1,523.64 0.54 3,298.31 2,927.01 2.77
4.27
207.85
102.62
536.97 345.48 0.00
253.18 352.13 10.96
Total Current Assets
7,020.83 5,172.84
Total Assets
9,141.45 6,826.15
WHAT NEXT ?
Equity & Liabilities
Shareholder's Funds Equity Share Capital Other Equity Non-Controlling Interest Total Shareholder's Funds
Non-Current Liabilities Long-Term Borrowings Lease Liabilities Provisions Deferred Tax Liabilities (Net) Other Non-Current Liabilities Total Non-Current Liabilities Current Liabilities Short-term Borrowings Trade Payables Total Outstanding dues of micro and small enterprises Total Outstanding dues of Creditors other than micro and small enterprises Other Financial Liabilities Provisions Other Current Liabilities Current Tax Liability (Net) Total Current Liabilities Total Equity & Liabilities
315.71 3,689.43 4.02
285.71 2,534.31 3.19 4,009.15 2,823.20
402.41 13.25 36.79 51.01
0.85
433.43 1.35 32.43 49.83
0.92
504.30
517.97
2,316.40
2,052.33
43.83
27.08
682.36
481.43
0.22 4.73 1,567.73 12.74
0.24 2.94 920.94 0.00 4,628.00 3,484.97 9,141.45 6,826.15
q
q
q
q
q
The recent government allocation of approximately Rs. 2.4 Lakh Crore towards the Railway sector and its electrification efforts, presents STEL with a significant opportunity to expand its operations and increase its market presence.
Increasing electricity demand in the country has led to a need for enhancing Sub-station capacity portraying a significant prospect for the growth of the company.
Rolling out of 5G services in India will drive the growth of telecom towers in India. The Telecom sector expects the number of towers to grow exponentially from 6 lakhs to 16 lakhs in the next 5 years.
Further STEL's foray into new Heavy Steel Structures enables it to cater to growing demand for high-end infrastructure from refineries, steel plants, power plants, rail and roadways.
STEL is setting up a new galvanization Plant and a Heavy Steel Structure Plant. The former plant will be set up at Hapur, Uttar Pradesh with a manufacturing capacity of 96,000 MTPA making it Asia’s largest Galvanization Plant. The latter plant will be located at Bhilai, Chhattisgarh, having a manufacturing capacity of 25,000 MTPA allowing STEL to cater to southern and eastern regions of Indian markets. At full capacity, STEL is poised to experience a substantial boost in revenue, propelling it to the next level.
BUSINESS UPDATE
STEL has secured a Letter of Intent worth Rs. 1,430 Mn. From Nepal Electricity Authority (NEA) for Procurement of Material equipment, associated accessories, and necessary installation services including design, erection, testing, and commissioning of 33/11 KV substations and 33 KV, 11 KV, 400 V Lines and Distribution system Networks in Dang, Rukum East, and Baitadi Districts of Nepal. The project is expected to be completed by FY25.
MANAGEMENT COMMENTARY
Commenting on the quarterly and yearly performance of the company, the management team said:
“We are pleased to present our business performance for Q4 FY23 and Financial Year ended 31st March, 2023 period. In terms of financial performance, Revenue from operations stood at Rs. 2,946.96 Mn for Q4 FY23 against Rs. 2,122.75 Mn for Q4 FY22 and Rs. 10,048.95 Mn for FY23 as compared to Rs. 7,188.62 Mn in FY 22. This robust growth was led by increasing demand for our diversified EPC solutions and efficient execution of order book. Our EBITDA stood at Rs. 298.51 Mn for Q4 FY23 v/s Rs. 160.46 Mn for Q4 FY22 and at Rs. 918.12 Mn in FY23 against Rs. 689.31 Mn in FY22 increasing by 86.04% and 33.19% respectively led by stabilization in steel prices and increased capacity utilization. EBITDA Margins were recorded at 10.13% in Q4 FY23 as compared to 7.56% in Q4 FY22 and at 9.14% in FY23 as compared to 9.59% in FY22. PAT stood at Rs. 147.31 Mn in Q4 FY23 v/s Rs. 71.34 Mn in Q4 FY22 and at Rs. 402.54 Mn in FY23 as compared to Rs. 321.83 Mn in FY22. PAT margins were witnessed at 4.97% in Q4 FY23 and 4.00% in FY23.
In terms of business performance, we believe this robust performance is likely to sustain on the back of healthy order book and elevated government spending on Railways, roll out of 5G services, increasing focus on infrastructure, growing demand for electricity, and shift towards renewable energy. Furthermore, our exceptional product quality and efficient process has aided the company to become a highly sought-after supplier for a diverse range of clients.
In addition, we have expanded our service offerings which requires deep expertise in engineering and construction space that has been well-received by our customers. This has allowed us to further differentiate ourselves from our competitors, while also driving incremental revenue growth and order wins.
To capitalize on the upcoming opportunity, we are setting up two new manufacturing units in Hapur, Uttar Pradesh and Bhilai, Chhattisgarh producing value-added products which will double our manufacturing capacity and further add on to our EBITDA and EBITDA Margins.
Looking ahead, we remain focused on our core mission of delivering exceptional engineering and constructional solutions to our customers while driving sustainable growth to our stakeholders. We will continue to invest in our network and technology, while also exploring new opportunities for growth and innovation. We would like to conclude by thanking our whole team who have stood tall with us in every situation.”
DISCLAIMER
Certain statements in this document may be forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Salasar Techno Engineering Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstance.
CONTACT DETAILS
Pramod Kala (CFO)
Krunal Shah/ Naman Maheshwari
Salasar Techno Engineering ltd.
Captive IR Strategic Advisors Pvt. Ltd.
Email: pramod.kala@salasartechno.com
Email: krunal@cap-ir.com/naman@cap-ir.com
Contact: +91 9810300655
Contact: +91 93724 67194