Capitaline

Results 15-Aug-21

Analysis

Sundram Fasteners

Strong operating performance

Consolidated net sales (including other operating income) of Sundram Fasteners for the quarter ended Jun 2021 has increased 198% to Rs 1112.43 crore. Operating profit margin has jumped from 4.1% to 18.0%, leading to 1224% rise in operating profit to Rs 200.45 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 35.06% to 41.43%. Employee cost decreased from 25.12% to 10.21%. Other expenses fell from 35.30% to 31.04%.

Other income rose 98% to Rs 17.13 crore. PBIDT rose 815% to Rs 217.58 crore. Provision for interest fell 32% to Rs 7.75 crore. PBDT rose 1,599% to Rs 209.83 crore. Provision for depreciation rose 5% to Rs 46.61 crore. Profit before tax reported profit of Rs 163.22 crore compared to a loss of Rs 31.95 crore.

Share of profit/loss were nil in both the periods. Provision for tax was debit of Rs 42.73 crore, compared to credit of Rs 6.52 crore. Thus PAT was a profit of Rs 120.49 crore compared to a loss of Rs 25.43 crore in the corresponding previous period. Minority interest decreased 33% to Rs 0.85 crore. Net profit attributable to owners of the company was Rs 119.64 crore compared to loss of Rs 26.7 crore.

Management Commentary

Arathi Krishna, Managing Director, Sundram Fasteners Limited, said, "Despite the challenges posed by the second wave of the pandemic during the first quarter of fiscal year 2022, we managed to deliver a strong operating performance by judiciously planning our manufacturing and at the same time ensuring the health and safety of our people."

"The gradual opening up of the economy from the second quarter of FY 2021 helped create an upward trend in demand as OEMs ramped up their production levels, however the second wave of Covid-19 did cause pressure on the Indian automotive sector. This proved to be a challenge for several OEMs across the country, forcing them to cut production or suspend operations temporarily. Despite this, the cost and efficiency improvement measures enabled the Company to sustain its operating and net margins,"

Promoters’ stake was 49.53% as of 30 June 2021, compared to 49.53% as of 30 June 2020.

Sundram Fastners: Consolidated Results
	2106 (3)	2006 (3)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	1112.43	373.17	198	3644.29	3723.23	-2
OPM (%)	18.0	4.1		18.2	15.9
OP	200.45	15.14	1224	664.12	592.90	12
Other inc.	17.13	8.63	98	27.40	28.09	-2
PBIDT	217.58	23.77	815	691.52	620.99	11
Interest	7.75	11.42	-32	26.13	57.90	-55
PBDT	209.83	12.35	1599	665.39	563.09	18
Dep.	46.61	44.30	5	179.69	169.92	6
PBT	163.22	-31.95	LP	485.70	393.17	24
EO	0.00	0.00		0.00	0.00
PBT after EO	163.22	-31.95	LP	485.70	393.17	24
Taxation	42.73	-6.52	-755	122.99	66.64	85
PAT	120.49	-25.43	LP	362.71	326.53	11
Minority Interest (MI)	0.85	1.27	-33	3.53	1.64	115
PAT after MI	119.64	-26.70	LP	359.18	324.89	11
EPS (Rs)*	#	#		17.1	15.5
* EPS is on current equity of Rs 21.01 crore, Face value of Rs 1
# EPS is not annualised due to seasonality of business
** Variance could not be calculated as no previous period figures
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

Sundram Fasteners receives reaffirmation in short term credit rating
( Corporate News - 09-Mar-21 11:12 )

Sundram Fasteners standalone net profit rises 15.04% in the March 2019 quarter
( Results - Announcements 10-May-19 15:40 )

Sundram Fasteners comes under PLI scheme for AAT components
( Corporate News - 30-Mar-22 20:21 )

Sundram Fasteners receives affirmation in credit ratings
( Corporate News - 24-Apr-23 20:04 )

Sundram Fasteners standalone net profit declines 7.59% in the December 2019 quarter
( Results - Announcements 29-Jan-20 16:21 )

Sundram Fasteners gains after CRISIL reaffirms ratings
( Hot Pursuit - 09-Mar-21 12:30 )

Board of Sundram Fasteners recommends Interim Dividend
( Corporate News - 04-Nov-23 10:52 )

Volumes jump at Sundram Fasteners Ltd counter
( Hot Pursuit - 14-May-24 11:00 )

Sundram Fasteners consolidated net profit rises 36.90% in the December 2020 quarter
( Results - Announcements 04-Feb-21 15:07 )

Volumes spurt at VST Industries Ltd counter
( Hot Pursuit - 17-Mar-20 14:30 )

Sundram Fasteners standalone net profit rises 63.39% in the December 2016 quarter
( Results - Announcements 02-Feb-17 17:04 )