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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.
September 2018 quarter results
For the quarter ended September 2018, it registered a 22% growth in sales to Rs 1001.61 crore.
The export sales for the Quarter ended were at Rs334.76 crore against Rs 283.25 crore, up 18.2%.
OPM improved 10 basis points to 18.9% which saw OP go up 23% to Rs 189.01 crore.
Other income grew 16% to Rs 9.58 crore and interest cost went down 35% to Rs 10.35 crore.
As depreciation grew 11% to Rs 26.46 crore, PBT went up 32% to Rs 161.89 crore. Tax provision grew 62% to Rs 51.56 crore (tax incidence grew from 26.0% to 31.9%). Finally, PAT grew 22% to Rs 110.22 crore.
Six months results
For the six months, it registered a 22% growth in sales to Rs 1972.58 crore.
Revenue for the half year includes exports of Rs. 656.48 crores (against Rs 571.23 crore).
OPM fell 20 basis points to 18.5% which saw OP go up 21% to Rs 365.60 crore.
Other income grew 22% to Rs 24.89 crore and interest cost went down 10% to Rs 23.07 crore.
Other income for the half year includes net foreign exchange gain of Rs 20.16 crores (against Rs 9.49 crore).
As depreciation grew 7% to Rs 52.20 crore, PBT went up 27% to Rs 315.22 crore. Tax provision grew 48% to Rs 98.82 crore (tax incidence grew from 27.0% to 31.3%). Finally, PAT grew 20% to Rs 216.40 crore.
FY 2018 results
For FY 2018, it registered a 15% growth in sales to Rs 3396.11 crore. Sales grew on the back of increase in production of passenger vehicles, utility vehicles, light commercial vehicle and two wheelers.
OPM improved 10 basis points to 18.3% which saw OP grow 15% to Rs 620.74 crore.
PBT went up 22% to Rs 519.73 crore.
PAT grew 16% to Rs 367.47 crore.
Milestone and award
The company has crossed the milestone of posting quarterly revenue of Rs1,000 crore for the first time.
The company has won the prestigious Deming prize for all its 17 plants across entire Indian operations and is the first Indian company to achieve such a record.
Valuation
The stock trades at Rs 515.
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