Salzer Electronics Ltd

- No major new long-term debt is planned as of now; existing debt includes around Rs. 25 crores taken for the Smart Meter factory, out of which only Rs. 10 crores has been availed so far. - Maintenance CAPEX is expected around Rs. 25 crores this year, including Smart Meter CAPEX, but no significant new CAPEX or fundraising is planned beyond that. - Regarding equity, the company has made an investment of Rs. 8 crores for a 30% stake in Ultrafast Chargers Pvt. Ltd., but no mention of planned equity fundraising for Salzer itself. - Additional investments in the EV charging subsidiary are ongoing based on original deal terms, with Salzer increasing its stake as others dilute, but no separate equity raise announced. - Overall, no announcements regarding new debt or equity fundraising in the near term have been made.

- Around Rs. 25 crores invested in Smart Meter factory; balance CAPEX ongoing this year. - Total CAPEX for FY25 expected close to Rs. 50 crores, including Rs. 25 crores for Smart Meter factory and additional Rs. 20 crores for other investments. - Maintenance CAPEX apart from incremental investments not major; no significant new CAPEX planned currently. - Planning an investment of around Rs. 10 crores to start a wholly owned subsidiary in Saudi Arabia, with no major additional CAPEX planned there, only maintenance. - Further investment in EV charging manufacturing subsidiary planned; original deal terms allow Salzer to invest while others dilute. - Invested approx. Rs. 8 crores for 30% stake in EV start-up Ultrafast Chargers Private Limited; likely to support operations beyond just investment. - Software change for Smart Meter technology requires resource-intensive collaboration to meet Indian standards before product commercialization.

- The company targets revenue growth of 18% to 23% for the current year. - Industrial Switchgear business expected to grow around 22%-23%. - Wire & Cable business projected to grow between 18% and 20%. - Building Segment products anticipated to grow approximately 40%. - Smart Meters revenues expected to start in second half of the current year at around Rs. 200 crores, scaling up to Rs. 1,000 crores in FY26. - Smart Meter segment may contribute 30%-40% of revenues in the next full year. - The global and Indian Switchgear markets are projected to grow at a CAGR of 7.5% and 6.5% over the next 5 years respectively, driven by renewable energy and infrastructure growth. - Transformer division is a fast-growing segment with current capacity utilization at 75%. - EV Charger subsidiary growth is uncertain due to evolving market; peers currently have around Rs. 200 crores in revenues. - Margin improvements expected; company aims to reach EBITDA margins of around 11.5% in 2 years and an ROCE of 18% by FY26-27.

- Revenue Growth Guidance for FY25: 18% to 23% overall growth expected. - Industrial Switchgear: Expected growth around 22%-23%. - Wire & Cable: Expected growth approximately 18%-20%. - Building Segment: Projected to grow around 40%. - EBITDA Margin: Targeted improvement by about 100 basis points to range between 10% to 10.5% in FY25. - Smart Meter Business: - Revenue expected to start in H2 FY25 with around Rs. 200 crores. - Full capacity revenue projected at Rs. 1,000 crores in FY26. - Smart Meter EBITDA margin targeted at 14% at full utilization. - Overall EBITDA Margin Outlook: - Aim to reach approximately 10% in the current year. - Expected to improve to around 11%-11.5% in next 2 years excluding Smart Meter. - Inclusion of Smart Meter expected to help reach ROCE of 18% by FY26-27.

- The company is confident about securing a 4 million meter order for the next financial year for Smart Meters. - They are in discussions with multiple large AMISPs, including Adani's, GMR's, NCC, and a few others. - The known demand for Smart Meters in India is around 25 crore meters, but current supply capacity is about 3 crore meters annually, which is not fully supplied yet. - For the existing core businesses (Switchgear, Wire & Cable), growth guidance for FY25 is strong, with revenue growth expected between 18% to 23%. - Specific orderbook numbers are not disclosed, but there is ongoing engagement with customers and government-related AMISPs to secure future orders. - The Smart Meter business is yet to see major order inflow as testing and software changes finalize.