Sundram Fasteners posts Rs 120 cr Q1 net profit vs Rs 25 cr year-ago loss

The company's total revenue from operations trebled to Rs 1,112.4 crore from 373.2 crore a year ago

Sundram Fasteners Ltd (SFL), a part of the $8.5 billion TVS Group, has posted a consolidated net profit of Rs 120.5 crore for the first quarter of the current financial year. This was compared to a net loss of Rs 25.4 crore during the April to June quarter of 2020-21.

The company's total revenue from operations for the quarter ended June 30, 2021 was at Rs 1,112.4 crore as against Rs 373.2 crore during the same period in the previous year, posting a rise of 198 per cent.

Consolidated revenue from operations for the quarter ended June 30, 2021 includes exports of Rs 406.4 crore, compared to Rs 155.2 crore during the corresponding quarter last fiscal. The domestic sales for the first quarter was seen at Rs 559.9 crore, up over three-fold from Rs 132.9 crore during the previous year. The export sales for the quarter ended June 30, 2021 were at Rs 356.3 crore as against Rs. 135 crore during the same period in the previous year.

The EBITDA for the quarter was at Rs 192.9 crore as against Rs 12.9 crore, owing to stringent cost control measures and strong operating performance, the company said. The consolidated earnings per share (EPS) for the quarter stood at Rs 5.69 as against a negatice Rs 1.27 in the corresponding period last year.

Arathi Krishna, Managing Director, SFL, said, "The gradual opening up of the economy from the second quarter of FY21 helped create an upward trend in demand as OEMs ramped up their production levels, however the second wave of Covid-19 did cause pressure on the Indian automotive sector.”

She added that the second wave proved to be a challenge for several OEMs across the country, forcing them to cut production or suspend operations temporarily.

“Despite this, the cost and efficiency improvement measures enabled the Company to sustain its operating and net margins," Krishna added.