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Sundram Fasteners Q1 Result | Consolidated profit rises 14.6% YoY to Rs 138 crore; revenue jumps 27% to Rs 1,410 crore

The savings in its employee costs and other expenses helped improve the profitability

July 30, 2022 / 02:31 PM IST
 
 
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Sundram Fasteners Ltd., on July 29, reported a year-on-year growth of 14.6 percent in its consolidated profit after tax (PAT) at Rs 138 crore compared to a profit of Rs 120.5 crore achieved during the same period a year ago.

On a sequential basis, the consolidated profit surged 28.5 percent from a profit of Rs 107.4 crore recorded during the January – March period.

This was by far the highest ever quarterly profit generated by the company.

The Chennai-based auto components manufacturer saw its consolidated revenues increase by 26.8 percent on year to Rs 1,410 crore from Rs 1,112 crore registered during the same period last year. On a sequential basis, the revenues rose 5 percent from Rs 1,339.84 crore it reported during the previous quarter.

“The Company has registered a strong operating performance and reported highest ever profit despite a challenging environment posed by continuous increase in raw material prices, inflationary impact in indirect materials and steep increase in freight costs and other inputs”, said Managing Director Arathi Krishna while commenting on the performance of the business. “We continue to be cautiously optimistic about the ensuing quarters.”

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The company was able to bring about savings in its employee costs and other expenses as a percentage of revenue during the quarter. The other expenses at 30 percent of the revenues were lower by 180 bps on year and by 80 bps on quarter while the employee cost at 9 percent of revenues were lower by 190 bps on year and 30 bps on quarter.

The cost of raw materials, however, increased 210 bps on year to 45 percent. On a sequential basis, however, it was down 70 bps.

The consolidated EPS for the quarter came in at Rs 6.47 compared Rs 5.69 during the same period a year ago.

The company has planned a capex amounting to Rs 350 crore,s which it will incur over a period of five years for the manufacturing of advanced automotive technology components like powertrain sub-assemblies for electric vehicles (EV) and select internal combustion engine (ICE) vehicles. This is expected to provide a major thrust to the company’s exports in the coming years.

The company also has plans to invest Rs 300 crore in the wind energy business over the next two years as it sees a significant potential for growth in this area.

On a standalone basis, the revenue from operations for the quarter stood at Rs 1,239.64 crore as against the revenues of Rs 938.8 crore achieved during the same period last year, registering a YoY growth of 32 percent.

The net profit (standalone) for the quarter was at Rs 130.11 crore as against net profit of Rs. 112.55 crore during the same period in the previous year, a YoY growth of 15.6 percent.

Sundaram Fasteners ended Rs 25.75 higher at Rs 829.35 on July 29 on the NSE. The stock has generated returns of 10.5 percent over the past one year and has appreciated 16.4 percent over the past one month.
Gaurav Sharma
first published: Jul 30, 2022 02:31 pm
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