Sundram Fasteners hosted a conference call on May 27, 2024. In the conference call, the company was represented by: Mr. Dilip Kumar, Chief Financial Officer and Mr. C Rajagopalan, President - Fasteners Division.

Key takeaways of the call

In Q4 FY24, domestic sales grew 2.92% YoY to Rs 846.26 crore. Exports grew 13.6% YoY to Rs 385.28 crore.

Due to strong operational performance, the Company has registered its highest ever-net profit of Rs 132.54 crore for the quarter ended March 31, 2024 as against net profit of Rs 116.65 crore during the same period in the previous year, posting an increase of 13.6% YoY.

Going forward, management expects exports to grow faster from H2 FY25. PV segment is expected to record mid-single digit growth in FY25.

In FY24, PV contributed 40% to domestic sales and tractors 10%.

In FY24, EV contributed 6-7% to total revenue. Management anticipate EV contribution to increase in coming quarters.

The Company has improved its EBITDA margin supported by stability in the raw material prices and improvement in operational efficiency.

To drive long-term growth, the company has incurred Rs 343.45 crore towards capital expenditure as part of capacity expansion of existing lines of business and new projects. These investments will significantly enhance the Company’s capability to meet customer demands in various segments, viz., ICE vehicles, PHEVs, EVs, etc.

The Company has financed the entire capital expenditure project out of internal accruals without any incremental borrowings.

Company is planning to bring more green energy into its energy mix. This will keep costs under control and address its ESG perspective.

The company’s customer mix has changed, and it is selling more to customer where margins are high.

In FY24, borrowings came down to Rs 81 crore from Rs 141 crore in FY23.

The board declared second Interim Dividend of Rs 4.17 per share of Re 1 each for the financial year ended March 31, 2024. Record date for the purpose in 3 June 2024.

Two of the company’s wholly owned subsidiaries, viz. Sunfast TVS and TVS Engineering were merged with the Company pursuant to the approval of the Hon’ble National Company Law Tribunal, Chennai bench.