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Sundram Fasteners (SFL) is a part of the TVS Group, headquartered in Chennai, India. The 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, hubs and shafts, tappets and iron powder. Over the years, the company has acquired cutting-edge technological competencies in forging, metal forming, close-tolerance machining, heat treatment, surface finishing and assembly.
Quarter results
For the quarter, it registered a 20% growth in sales to Rs 1021.46 crore.
The export sales for the quarter increased 29% to Rs 370.68 crore.
OPM improved 120 basis points to 18.9% which saw OP go up 28% to Rs 192.63 crore.
Other income grew 98% to Rs 1.94 crore and interest cost went up from Rs 48 lakh to Rs 7.92 crore.
As depreciation grew 15% to Rs 27.80 crore, PBT went up 25% to Rs 158.85 crore. Tax provision grew 36% to Rs 47.67 crore (tax incidence grew from 27.6% to 30.0%). Finally, PAT grew 21% to Rs 111.18 crore.
Nine months results
For the nine months, it registered a 21% growth in sales to Rs 2994.04 crore.
OPM improved 30 basis points to 18.7% which saw OP go up 23% to Rs 560.64 crore.
Other income grew 53% to Rs 24.42 crore and interest cost went up 29% to Rs 30.99 crore.
Other income for the nine months includes net foreign exchange gain of Rs 17.75 crores (against Rs 3.95 crore).
As depreciation grew 10% to Rs 80.00 crore, PBT went up 27% to Rs 474.07 crore. Tax provision grew 44% to Rs 146.49 crore (tax incidence grew from 27.2% to 30.9%). Finally, PAT grew 20% to Rs 327.58 crore.
Valuation
The stock trades at Rs 527.
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