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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.
March 2015 quarter results
For the quarter ended March 2015, it registered a 15% growth in sales to Rs 600.40 crore.
OPM fell 280 basis points to 11.1% which saw OP falling 8% to Rs 66.59 crore.
Other income jumped 126% to Rs 13.97 crore and interest cost rose 154% to Rs 25.09 crore.
Interest cost includes forex loss of Rs of Rs 20.15 crore against Rs 2.81 crore.
As depreciation rose 27% to Rs 23.87 crore, PBT fell 36% to Rs 31.60 crore.
EO loss stood at Rs 10 crore against Rs 10 crore. Thus PBT after EO fell 45% to Rs 21.60 crore.
Tax fell 54% to Rs 5.63 crore after which PAT ended down 42% to Rs 15.97 crore.
FY 2015 results
In FY 2015, sales grew 18% to Rs 2386.39 crore.
Exports grew 19% to Rs 955.66 crore and domestic business grew 17% 1430.73 crore.
OPM improved 130 basis points to 14.0% which saw OP rising 30% to Rs 333.43 crore.
Other income crashed 52% to Rs 23.36 crore and interest cost rose 39% to Rs 81.39 crore.
Interest cost includes forex loss of Rs of Rs 60.01 crore against Rs 27.83 crore.
As depreciation rose 16% to Rs 88.32 crore, PBT grew 10% to Rs 187.08 crore.
EO loss stood at Rs 10 crore against Rs 10 crore. Thus PBT after EO rose 11% to Rs 177.08 crore.
Tax grew 7% to Rs 41.76 crore after which PAT ended up 12% to Rs 135.32 crore.
Consolidated FY 2015 results
On consolidated basis for FY 2015, sales grew 15% to Rs 3156.14 crore.
OPM improved 130 basis points to 11.9% which saw OP rising 30% to Rs 375.95 crore.
Other income crashed 66% to Rs 16.65 crore and interest cost rose 40% to Rs 94.47 crore.
As depreciation rose 13% to Rs 115.75 crore, PBT grew 8% to Rs 182.38 crore.
EO loss stood at Rs 14 lakh against nil. Thus PBT after EO rose 8% to Rs 182.24 crore.
Tax grew 5% to Rs 50.36 crore after which PAT ended up 9% to Rs 131.88 crore.
Outlook
The pace of growth in domestic market will improve going forward, as the government addresses various problems faced by the economy.
Prospects for increasing exports appear to be encouraging
The company expects to improve its overall performance through development of new products for existing customers and by winning new customers besides increased exports.
Valuation
The share price trades at Rs 169.
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