Sundram Fasteners Ltd.’s (SFL) net profit for the quarter ended June 30, 2016, was Rs. 75.55 crores as against Rs. 38.51 crores during the same period the previous year.
The earnings before interest, depreciation and taxes has increased to Rs. 139.96 crores from Rs. 94.70 crores. The EBIDTA margin has gone up during the period with volume growth caused by market buoyancy, product mix and specific cost reduction initiatives of the company. The interest cost has been contained within limits on account of better working capital management.
The company recorded revenue from operations of Rs. 713.00 crores for the quarter as against Rs. 631.94 crores achieved during the same period the previous year. Export sales were at Rs. 246.52 crores (Rs. 225.81 crores), and domestic sales, net of excise duties, were at Rs. 455.25 crores (Rs. 395.64 crores), representing an increase of 15.1 per cent.
The company is of the view that the automotive industry, and hence the automotive component market, has shown promising growth and will continue to do so due to the prospect of a good monsoon, robust economic growth and higher disposable income available due to the recent pay commission increase.
Sundram Fasteners is also actively investing in other automotive component verticals which will bolster its profitability. The continued prospect of sourcing of Indian automotive components from the US also augurs well for the export market.