Results     09-Feb-22
Analysis
Sundaram Clayton
PAT down 57.22%
For the quarter ending Dec 2021, standalone net sales (including other operating income) of Sundaram Clayton has increased 15.24% to Rs 426.99 crore as compared to quarter ended Dec 2020  Operating profit margin has declined from 18.85% to 10.75%, leading to 34.31% decline in operating profit to Rs 45.88 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 48.43% to 53.37%.   Employee cost decreased from 11.49% to 11.45%.   Other expenses rose from 22.25% to 24.93%.   

Other income fell 96.88% to Rs 0.18 crore.  PBIDT fell 39.07% to Rs 46.06 crore.  Provision for interest up 1.25% to Rs 11.31 crore.  

PBDT fell 46.07% to Rs 34.75 crore.  Provision for depreciation rose 29.66% to Rs 25.31 crore.  

Profit before tax down 78.98% to Rs 9.44 crore.  Provision for tax was expense of Rs 3.87 crore, compared to Rs 1.36 crore.  Effective tax rate was 19.13% compared to 3.43%.

Profit after tax fell 57.22% to Rs 16.36 crore.  

Promoters’ stake was 74.46% as of 31 December 2021 ,compared to 75.00% as of 31 December 2020 .  


For year-to-date (YTD) results analysis

Net sales (including other operating income) of Sundaram Clayton has increased 61.50% to Rs 1,245.97 crore.  

Operating profit margin has jumped from 11.57% to 12.81%, leading to 78.67% rise in operating profit to Rs 159.55 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 45.90% to 51.65%.   Employee cost decreased from 17.82% to 12.13%.   Other expenses fell from 24.79% to 24.10%.   

Other income fell 93% to Rs 0.9 crore.  PBIDT rose 57.07% to Rs 160.45 crore.  Provision for interest fell 11.63% to Rs 32.83 crore.  

PBDT rose 96.34% to Rs 127.62 crore.  Provision for depreciation rose 25.94% to Rs 74.18 crore.  Profit before tax grew 776.07% to Rs 53.44 crore.  Provision for tax was expense of Rs 10.15 crore, compared to Rs 2.34 crore.  Effective tax rate was 0.65% compared to negative 50.11%.Profit after tax reported profit of Rs 1,554.45 crore compared to loss of Rs 7.01 crore.  

Promoters’ stake was 74.46% as of 31 December 2021 ,compared to 75.00% as of 31 December 2020 .  


Full year results analysis

Net sales (including other operating income) of Sundaram Clayton has declined 11.13% to Rs 1,176.91 crore.  Operating profit margin has jumped from 10.41% to 12.78%, leading to 9.16% rise in operating profit to Rs 150.45 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 44.98% to 47.80%.   Employee cost decreased from 17.26% to 15.81%.   Other expenses fell from 27.02% to 23.84%.   

Other income up 11.39% to Rs 111.17 crore.  PBIDT rose 10.10% to Rs 261.62 crore.  Provision for interest fell 14.04% to Rs 47.62 crore.  Loan funds declined from Rs 555.28 crore as of 31 March 2020 to Rs 545.72 crore as of 31 March 2021.  Inventories rose to Rs 301.07 crore as of 31 March 2021 from Rs 271.32 crore as of 31 March 2020.  Sundry debtors were higher at Rs 228.96 crore as of 31 March 2021 compared to Rs 160.07 crore as of 31 March 2020.  Cash and bank balance declined from Rs 52.45 crore as of 31 March 2020 to Rs 48.85 crore as of 31 March 2021.  Investments rose to Rs 385.61 crore as of 31 March 2021 from Rs 232.27 crore as of 31 March 2020 .  

PBDT rose 17.44% to Rs 214 crore.  Provision for depreciation down 15.92% to Rs 77.9 crore.  Fixed assets declined from Rs 745.33 crore as of 31 March 2020 to Rs 724.61 crore as of 31 March 2021.  Intangible assets declined from Rs 0.83 crore to Rs 0.35 crore.  

Profit before tax grew 51.95% to Rs 136.10 crore.  Extraordinary items were increased to Rs -13.00 crore.  Provision for tax was expense of Rs 47.26 crore, compared to Rs 0.47 crore.  Effective tax rate was 38.39% compared to 0.68%.

Profit after tax rose 10.39% to Rs 75.84 crore.  

Promoters’ stake was 75.00% as of 31 March 2021 ,compared to 75.00% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 124.72 crore for year ended March 2021 from Rs 182.48 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 55.41 crore, compared to Rs 26.63 crore during the year ended March 2020.  

Other Highlights

Company has proposed to reorganise and segregate the businesses of manufacturing non-ferrous gravity and pressure die castings from its other businesses. It also proposed to consolidate promoter holding entities with the Company by way of merger.

The Scheme provides for issue of 116 Non-Convertible Redeemable Preference Shares (“NCRPS”) of Rs 10 each fully paid up of the Company for every 1 equity shares of Rs 5 each fully paid up, by way of bonus to the shareholders of the Company by utilising its general reserves/retained earnings. The NCRPS will be issued on the Effective Date 1, which is after the approval of the National Company Law Tribunal (NCLT) to the Scheme.



Sundaram Clayton : Standalone Results
Quarter endedYear to DateYear ended
Particulars202112202012Var.(%)202112202012Var.(%)202103202003Var.(%)
Net Sales (including other operating income)426.99370.5115.241,245.97771.5261.501,176.911,324.34-11.13
OPM (%)10.7518.85-810 bps12.8111.57123 bps12.7810.41238 bps
OP45.8869.84-34.31159.5589.3078.67150.45137.829.16
Other Inc.0.185.76-96.880.9012.85-93.00111.1799.8011.39
PBIDT46.0675.60-39.07160.45102.1557.07261.62237.6210.10
Interest11.3111.171.2532.8337.15-11.6347.6255.4-14.04
PBDT34.7564.43-46.07127.6265.0096.34214.00182.2217.44
Depreciation25.3119.5229.6674.1858.925.9477.992.65-15.92
PBT9.4444.91-78.9853.446.1776.07136.189.5751.95
PBT before EO9.4444.91-78.9853.446.1776.07136.189.5751.95
EO Income10.79-5.31LP1511.16-10.77LP-13-20.436.27
PBT after EO20.2339.6-48.911564.6-4.67LP123.169.1777.97
Taxation3.871.36184.5610.152.34333.7647.260.479,955.32
PAT16.3638.24-57.221554.45-7.01LP75.8468.710.39
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations16.3638.24-57.221554.45-7.01LP75.8468.710.39
EPS (Rs)*3.7721.44-82.4126.241.861,311.9741.4443.97-5.74
* EPS is on current equity of Rs 10.12 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database
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