 "Auto parts firm Sundram Fasteners Q3 profit rises 10% to Rs 118.07 cr")
Auto parts company Sundram Fasteners Ltd (SFL) on Friday reported a 10 per cent rise in consolidated net profit for the third quarter of Financial Year 2023-24 (Q3 FY24) at Rs 129.44 crore compared to Rs 118.07 crore in the same period in FY23.
SFL's consolidated revenue from operations in Q3 FY24 was Rs 1,367.25 crore compared to Rs 1,403.03 crore in the same period in the previous year. The company’s consolidated earnings per share (EPS) for the quarter ended December amounted to Rs 6.12 and was Rs 5.57 in the corresponding period last year.
SFL has an agreement with Tamil Nadu to invest Rs 1,411 crore in the state. The investment, which was committed during the Tamil Nadu Global Investors Meet in Chennai in January, is planned between 2027 and 2028 and will be used for the capacity expansion of existing products, including components for electric vehicles. This investment shows the company’s commitment to the state's economic development and will generate employment for more than 1,500 people, the company said.
The investment will be made in Sundram Fasteners factories across Tamil Nadu in Padi; Mahindra World City, Velappanchavadi; Gummidipoondi; Hosur; Aviyur, Madurai and Mittamandagapattu, Villupuram.
The company plans a capital expenditure of Rs 300 crore in FY24. “In keeping with the large EV (electric vehicle) orders secured by the Company and the Memorandum of Understanding entered with the Government of Tamil Nadu, capital allocation and development of products are in accordance with the timelines planned by the Company,” it said.
The company’s product range consists of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, tappets, iron powder, power train components and sub-assemblies.