Sundram Fastners registered 27% fall in consolidated sales for the quarter ended Mar 2020 to Rs 830.91 crore. However lower sales together with 190 bps fall in operating profit margin to 14.8% has resulted in 36% fall in operating profit to Rs 122.84 crore. The other income was up by 110% to Rs 5.17 crore and thus the fall at PBIDT moderated marginally by 34% to Rs 128.01 crore. Hit further by higher interest cost and higher depreciation the PBT was down by 53% to Rs 70.22 crore. But with taxation down by 53% to Rs 16.83 crore, the fall at PAT was 53% to Rs 53.39 crore. With MI being a share of loss of Rs 1.18 crore, a swing of Rs 1.23 crore, the PAT was down by 52% to Rs 54.57 crore.
- Sales (excluding other operating income) was down by 26% to Rs 808.47 crore with domestic sales down by 22% to Rs 518.29 crore and export sales was down by 32% to Rs 290.18 crore. But the value of production for the period was down by 26% to Rs 812.29 crore(from Rs 1104.85 crore in the corresponding previous period). Sale for the quarter was 1.00 times of value of production but the sales for corresponding previous period was 0.99 times of its value of production. Sales marginally lower than value of production for the quarter reflects buildup of inventory which will get liquidated in coming quarters.
- OPM lower by 190 bps to 14.8% was largely due to rise in staff and OE expenses. Material cost as % of sales net of stocks was down by 30 bps to 41.1%. However, the staff cost was up by 70 bps to 11% and OE was up by 140 bps to 33.2%. Thus the gain of marginal lower material cost was more than offset by rise in all other cost heads.
- Other income was up by110% to Rs 5.17 crore. The forex gain, which was part of OI was down by 95% to Rs 0.07 crore. The interest cost was up by 58% to Rs 13.94 crore and the depreciation was up by 22% to Rs 43.85 crore. Thus the PBT was down by 53% to Rs 70.22 crore.
Yearly performance
Sales was down by 18% to Rs 3723.23 crore and with 170 bps contraction in OPM to 15.9%, the operating profit was down by 26% to Rs 592.90 crore. After accounting for higher OI, hither interest and higher depreciation the PBT was down by 40% to Rs 393.17 crore. With taxation stand lower by 66% to Rs 66.64 crore, the PAT was down by 29% to Rs 326.53 crore. Eventually the net profit after MI was down by 29% to Rs 324.89 crore with MI was up by 11% to Rs 1.64 crore.
The three foreign subsidiaries of the Group have financial years ending on December 31, whereas the parent company along with its domestic subsidiaries have the year end of March 31. During the current quarter, such foreign subsidiaries have aligned their financial year end with that of the parent company for consolidation purposes, eliminating a 3 month time lag for incorporating the results of such foreign subsidiaries with the consolidated financial results of the Group. As a result of this change, the consolidated financial results for the year ended March 31, 2020 also includes the financial results of such foreign subsidiaries for the period January I, 2019 to March 31, 2019. This has resulted in increase in revenue from operations by Rs 100.41 crore and reduction in profit after tax by Rs1.38 crore. For the corresponding quarter and year ended March 31, 2019, the consolidated financial results represents financial results of such foreign subsidiaries for the period, October 1, 2018 to December 31, 2018 and January 1, 2018 to December 31, 2018 respectively.
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