Sundram Fasteners' net profit rises 14.5% to Rs 138.03 cr during June qtr

Auto component major Sundram Fasteners (SFL) posted a consolidated net profit of Rs 138.03 crore during Q1FY23, up 14.5 per cent from Rs 120.51 crore reported during the same period last year.

The company’s revenue from operations for the quarter ended June 30, 2022 came in at Rs 1,410.12 crore as against Rs 1,129.56 crore during the during the corresponding period of FY22, an increase of 24.8 per cent. The consolidated earnings per share (EPS) for the quarter amounted to Rs 6.47 compared to Rs 5.74 in the corresponding period last year.

“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 Arathi Krishna, MD Sundram Fasteners. “We continue to be cautiously optimistic about the ensuing quarters” she added.

The Company said that it is planning to invest around Rs 350 crore over a period of 5 years for manufacturing advanced automotive technology components like powertrain sub-assemblies for electric vehicles (EV) and select internal combustion engine (ICE) vehicles. The investments proposed to be made in this direction are expected to provide a major thrust to the company’s exports in the years to come, it said.

On a standalone basis, the net profit for the quarter ended June 30, 2022 was at Rs 130.11 crore as against a net profit of Rs 112.55 crore during the same period last year, with a year-on-year growth of 15.6 per cent. Domestic sales for the quarter were seen at Rs 798.50 crore as against Rs 559.93 crore during the previous year, an increase of 42.6 per cent. Exports for the quarter also increased by 13.9 per cent to Rs 405.76 crore as against Rs 356.33 crore during the same period last year.