The company is very much focused on the ever-growing telecom market, especially in the context of the upcoming 5G roll-outs, expresses Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering Ltd
Over 9MFY22, Salasar Techno Engineering posted a net profit of Rs 24.24 crore, up by 21.29 per cent as against Rs 19.95 crore recorded in 9MFY21. What factors have contributed the most to help you outperform?
The sales for 9MFY22 came at around Rs 508 crore as compared to 9MFY21, which were at Rs 390 crore. This proportionately helped the bottom line. Decent growth in the export of telecom towers along with a robust execution of EPC projects helped us to achieve a better topline.
Salasar Techno Engineering has witnessed robust order inflows over the last few months. Can you share an overview of the overall order book and execution?
The order book stands at a decent size of about Rs 1,000 crore. The EPC orders are to be executed over the next 18-24 months whereas the supply orders would be completed over the next 3 to 4 months.
With inflation leading to a rise in input costs, what cost optimization measures are you implementing to safeguard profit margins?
Through most of the fluctuations in the commodity prices are pass-through as per price variation clauses, the rising inflation cost does affect businesses in terms of rising labor and living costs apart from the increased overall manufacturing costs, etc. We are trying to increase manufacturing efficiency by trying to achieve economy of scale and implementing just-in-time processes.
What are your plans to further expand your geographical reach through exports over the next three years?
Currently, we export primarily telecom towers to various countries in Africa and Southeast Asia. The company has put in place a dedicated business development team to establish the export business of transmission line towers and monopolies in Africa, the Middle East, North America, and Latin America. The company wishes to establish itself as a significant player in these areas within the next three years.
What are the new opportunities that Salasar Techno Engineering is currently focusing on?
The company is very much focused on the ever-growing telecom market, especially in the context of the upcoming 5G roll-outs. Apart from this, railways, heavy steel structures fabrication, and export of transmission line towers will be the major focus area in the coming times.
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