Sundram Fasteners Ltd, part of the USD 8.5 billion TVS Group, on Wednesday said it has set up a unit to produce high precision engineering components for giving an impetus to its exports besides diversifying customer base.
The new unit at Sri City in neighbouring Tada in Andhra Pradesh has been set up at an initial investment of Rs 100 crore and it would manufacture and export high precision engineering components to a leading manufacturer in Europe for onward supply to global OEM customers.
The unit has commenced commercial production and has made the first shipment to Germany on January 27.
The city-based company in a statement said the unit would provide further impetus to export through addition of products to its portfolio as well as diversifying customer base.
Meanwhile, the company declared the financial results for the period October-December 2019.
Net profit on standalone basis for the quarter under review was at Rs 103.06 crore as against Rs 111.53 crore recorded same period last year.
Revenue from operations for the quarter ending December 31, 2019 was at Rs 692.80 crore as against Rs 1,018.84 crore recorded same period last year.
Due to the drop in industry volumes, the company said domestic sales was lower at Rs 446.05 crore as against Rs 608.48 crore during same period last year.
Exports for the quarter under review was at Rs 224.18 crore as against Rs 370.67 crore in same period of last year.
The earnings before interest, depreciation and taxes for the quarter ending December 31, 2019 was at Rs 124.54 crore as against Rs 195.15 crore registered corresponding period last year.
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