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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 2018 quarter results
For the quarter ended March 2018, it registered a 19% growth in sales to Rs 945.45 crore.
OPM improved 70 basis points to 17.5% which saw OP go up 24% to Rs 165.86 crore.
Other income jumped from Rs 9 lakh to Rs 17.34 crore and interest cost stood at Rs 12.31 crore against an income of Rs 1.24 crore.
Fmance cost for the quarter includes applicable net loss on foreign currency transactions and translation to the extent regarded as borrowing costs of Rs 9.78 crore (against exchange gain of Rs 8.39 crore).
As depreciation grew 33% to Rs 25.17 crore, PBT went up 26% to Rs 145.72 crore. Tax provision grew 79% to Rs 50.50 crore. Finally, PAT grew 9% to Rs 95.22 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.
Sales include exports sales of Rs 1144.46 crore against Rs 1044.11 crore, up 9.6%.
OPM improved 10 basis points to 18.3% which saw OP grow 15% to Rs 620.74 crore.
Other income jumped 129% to Rs 29.62 crore and interest cost fell 10% to Rs 32.56 crore.
Other income for the year includes foreign exchange gain of Rs. 11.64 crores (against foreign exchange loss of Rs. 11.65 crore included in other expenses).
Fmance cost for the quarter includes applicable net loss on foreign currency transactions and translation to the extent regarded as borrowing costs of Rs 13.76 crore (against exchange loss of Rs 6.01 crore).
As depreciation grew 9% to Rs 98.07 crore, PBT went up 22% to Rs 519.73 crore. Tax provision grew 40% to Rs 152.26 crore. Finally, PAT grew 16% to Rs 367.47 crore.
Consolidated performance
The company's consolidated revenues posted an increase of 16.2% for the year at Rs 3,854.43 crore. The consolidated net profit recorded an increase of 14.8% at Rs. 388.17 crore.
The company's subsidiary company, Sundram Fasteners (Zhejiang) Ltd (SFZL), operating in Zhejiang, China has established a state of the art foundry facility with an initial capacity of 10000 MT as a part of backward integration to SFZL's products.
Valuation
The share price trades at Rs 583.
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