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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 2015 quarter results
For the quarter ended September 2015, it registered a 7% growth in sales to Rs 660.31 crore.
Exports sales accounted for Rs 230.68 crore (up 1%) and domestic sales accounted for Rs 419.06 crore (up 10%).
OPM fell 200 basis points to 14.5% which saw OP going down 6% to Rs 95.89 crore.
Other income jumped 138% to Rs 7.37 crore and interest cost fell 38% to Rs 14.50 crore. Interest cost includes forex loss of Rs of Rs 9.57 crore against Rs 17.93 crore.
As depreciation jumped 46% to Rs 22.14 crore, PBT stood at Rs 66.62 crore against aRs 66.86 crore.
As tax fell 6% to Rs 14.88 crore, PAT ended up 1% to Rs 51.74 crore.
Six months results
For the six months ended September 2015, it registered 8% growth in sales to Rs 1292.25 crore.
Six months exports sales stood at Rs 456.49 crore (against Rs 455.22 crore).
OPM fell 200 basis points to 14.3% which saw OP going down 5% to Rs 184.21 crore.
Other income jumped 216% to Rs 13.29 crore. During the six months other income included foreign exchange gaions of Rs 11.49 crore against Rs 24.88 crore.
Interest cost fell 30% to Rs 25.19 crore. Interest cost includes forex loss of Rs of Rs 15.28 crore against Rs 25.20 crore.
As depreciation grew 5% to Rs 44.73 crore, PBT grew 7% to Rs 127.58 crore.
EO loss stood at Rs 2.50 crore against nil. Thus PBT after EO rose 5% to Rs 125.08 crore.
EO represents diminution in value of investments in subsidiary company names Peiner Umformtechnik GmBH, Germany recognized in the current quarter against the provision made in FY 2015 amounting to Rs 10 crore.
As tax fell 3% to Rs 31.05 crore, PAT ended up 5% to Rs 94.03 crore.
FY 2015 results
In FY 2015, sales had grown 18% to Rs 2386.39 crore. OPM had improved 130 basis points to 14.0% which saw OP rising 30% to Rs 333.43 crore. PBT was up 10% to Rs 187.08 crore and PAT had grown 12% to Rs 135.32 crore.
Other details
The board of directors has decided to provide for diminution in carrying cost of investment in subsidiary viz premier Umformtechnik Gmbh, germany at the end of FY 2016and thus no provision has been made in the current quarter.
The board of directors has decided to pay interim dividend of Rs 0.85 per share.
Valuation
The share price trades at Rs 167.
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