Results     04-Nov-23
Analysis
Sundram Fasteners
NP up 14.38% mainly due to margin improvement
For the quarter ending Sept 2023, consolidated Net sales (including other operating income) of Sundram Fasteners has increased 1.44% to Rs 1421.82 crore compared to quarter ended Sept 2022. Operating profit margin has jumped from 14.60% to 16.23%, leading to 12.72% rise in operating profit to Rs 230.73 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.09% to 43.23%.   Employee cost increased from 8.82% to 9.34%.   Other expenses fell from 31.98% to 31.77%.   

Other income fell 24.90% to Rs 7.3 crore.  PBIDT rose 11.02% to Rs 238.03 crore.  Provision for interest fell 8.65% to Rs 7.39 crore.  Loan funds declined from Rs 727.55 crore as of 30 September 2022 to Rs 592.92 crore as of 30 September 2023.  Inventories rose to Rs 955.27 crore as of 30 September 2023 from Rs 915.71 crore as of 30 September 2022.  Sundry debtors were higher at Rs 1,124.09 crore as of 30 September 2023 compared to Rs 1,109.40 crore as of 30 September 2022.  Cash and bank balance declined from Rs 71.98 crore as of 30 September 2022 to Rs 65.33 crore as of 30 September 2023.  Investments rose to Rs 127.62 crore as of 30 September 2023 from Rs 78.80 crore as of 30 September 2022 .  

PBDT rose 11.79% to Rs 230.64 crore.  Provision for depreciation rose 10.40% to Rs 54.46 crore.  Fixed assets increased to Rs 2,109.16 crore as of 30 September 2023 from Rs 2,028.97 crore as of 30 September 2022.  Intangible assets declined from Rs 7.12 crore to Rs 3.34 crore.  

Profit before tax grew 12.22% to Rs 176.18 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 43.13 crore, compared to Rs 40.21 crore.  Effective tax rate was 24.48% compared to 25.61%.

Minority interest decreased 20.81% to Rs 1.18 crore.  Net profit attributable to owners of the company increased 14.38% to Rs 131.87 crore.  

Equity capital stood at Rs 21.01 crore as of 30 September 2023 to Rs 21.01 crore as of 30 September 2022.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 48.51% as of 30 September 2023 ,compared to 48.51% as of 30 September 2022 .  
 

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Sundram Fasteners has increased 0.74% to Rs 2832.58 crore.  

Operating profit margin has jumped from 15.30% to 16.14%, leading to 6.25% rise in operating profit to Rs 457.11 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.06% to 42.49%.   Employee cost increased from 8.77% to 9.62%.   Other expenses rose from 31.16% to 31.98%.   

Other income fell 44.55% to Rs 11.81 crore.  PBIDT rose 3.85% to Rs 468.92 crore.  Provision for interest rose 0.18% to Rs 17.03 crore.  Loan funds declined from Rs 727.55 crore as of 30 September 2022 to Rs 592.92 crore as of 30 September 2023.  Inventories rose to Rs 955.27 crore as of 30 September 2023 from Rs 915.71 crore as of 30 September 2022.  Sundry debtors were higher at Rs 1,124.09 crore as of 30 September 2023 compared to Rs 1,109.40 crore as of 30 September 2022.  Cash and bank balance declined from Rs 71.98 crore as of 30 September 2022 to Rs 65.33 crore as of 30 September 2023.  Investments rose to Rs 127.62 crore as of 30 September 2023 from Rs 78.80 crore as of 30 September 2022 .  

PBDT rose 4% to Rs 451.89 crore.  Provision for depreciation rose 8.53% to Rs 106.32 crore.  Fixed assets increased to Rs 2,109.16 crore as of 30 September 2023 from Rs 2,028.97 crore as of 30 September 2022.  Intangible assets declined from Rs 7.12 crore to Rs 3.34 crore.  

Profit before tax grew 2.68% to Rs 345.57 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 83.78 crore, compared to Rs 81.75 crore.  Effective tax rate was 24.24% compared to 24.29%.

Minority interest decreased 33.71% to Rs 2.32 crore.  Net profit attributable to owners of the company increased 3.25% to Rs 259.47 crore.  

Equity capital stood at Rs 21.01 crore as of 30 September 2023 to Rs 21.01 crore as of 30 September 2022.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 48.51% as of 30 September 2023 ,compared to 48.51% as of 30 September 2022 .  

Cash flow from operating activities increased to Rs 349.40 crore for YTD ended September 2023 from Rs 141.76 crore for YTD ended September 2022.  Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 153.37 crore, compared to Rs 80.35 crore during the YTD ended September 2022.  


Full year results analysis.

Net sales (including other operating income) of Sundram Fasteners has increased 15.52% to Rs 5662.75 crore.  Operating profit margin has declined from 16.35% to 15.07%, leading to 6.50% rise in operating profit to Rs 853.47 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 43.33% to 44.60%.   Employee cost decreased from 9.70% to 9.06%.   Other expenses rose from 30.99% to 31.44%.   

Other income rose 14.01% to Rs 44.85 crore.  PBIDT rose 6.85% to Rs 898.32 crore.  Provision for interest rose 38.20% to Rs 39.69 crore.  Loan funds declined from Rs 771.68 crore as of 31 March 2022 to Rs 730.29 crore as of 31 March 2023.  Inventories rose to Rs 923.42 crore as of 31 March 2023 from Rs 820.08 crore as of 31 March 2022.  Sundry debtors were higher at Rs 1,144.57 crore as of 31 March 2023 compared to Rs 1,005.04 crore as of 31 March 2022.  Cash and bank balance rose to Rs 86.98 crore as of 31 March 2023 from Rs 71.31 crore as of 31 March 2022.  Investments rose to Rs 102.30 crore as of 31 March 2023 from Rs 76.93 crore as of 31 March 2022 .  

PBDT rose 5.74% to Rs 858.63 crore.  Provision for depreciation rose 3.76% to Rs 197.97 crore.  Fixed assets increased to Rs 2,090.52 crore as of 31 March 2023 from Rs 2,061.23 crore as of 31 March 2022.  Intangible assets stood at Rs 3.34 crore.  

Profit before tax grew 6.35% to Rs 660.66 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 160.31 crore, compared to Rs 159.39 crore.  Effective tax rate was 24.27% compared to 25.66%.

Minority interest increased 10.76% to Rs 5.66 crore.  Net profit attributable to owners of the company increased 8.31% to Rs 494.69 crore.  

Equity capital stood at Rs 21.01 crore as of 31 March 2023 to Rs 21.01 crore as of 31 March 2022.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 48.51% as of 31 March 2023 ,compared to 49.69% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 468.96 crore for year ended March 2023 from Rs 401.18 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 238.53 crore, compared to Rs 203.73 crore during the year ended March 2022.  

Other Highlights

Board declared an interim dividend of Rs 2.68 per share for the financial year 2023-2024. Record date for the purpose is November 16, 2023.

In Q2 FY24, domestic sales were at Rs 861.78 crore as against Rs 802.45 crore in Q2 FY23, posting a growth of 7.39% YoY.

The export sales for the quarter ended September 30, 2023 were at Rs 337.01 crore as against Rs 377.78 crore during the previous year, posting a decline of 10.79%.

The Company has incurred capital expenditure for the half-year ended September 30, 2023 in line with its planned capital expenditure of Rs 300 crore for the financial year 2023-24. In keeping with the large EV orders secured by the Company, capital allocation and development of products are in accordance with the timelines planned by the Company.


Sundram Fasteners : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202309202209Var.(%)202309202209Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,421.821,401.651.442,832.582,811.770.745,662.754,902.0615.52
OPM (%)16.2314.60162 bps16.1415.3084 bps15.0716.35-128 bps
OP230.73204.6912.72457.11430.226.25853.47801.396.50
Other Inc.7.309.72-24.9011.8121.30-44.5544.8539.3414.01
PBIDT238.03214.4111.02468.92451.523.85898.32840.736.85
Interest7.398.09-8.6517.0317.000.1839.6928.7238.20
PBDT230.64206.3211.79451.89434.524.00858.63812.015.74
Depreciation54.4649.3310.40106.3297.968.53197.97190.793.76
PBT176.18156.9912.22345.57336.562.68660.66621.226.35
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO176.18156.9912.22345.57336.562.68660.66621.226.35
EO Income00-00-00-
PBT after EO176.18156.9912.22345.57336.562.68660.66621.226.35
Taxation43.1340.217.2683.7881.752.48160.31159.390.58
PAT133.05116.7813.93261.79254.812.74500.35461.838.34
Minority Interest (MI)1.181.49-20.812.323.5-33.715.665.1110.76
Net profit131.87115.2914.38259.47251.313.25494.69456.728.31
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations131.87115.2914.38259.47251.313.25494.69456.728.31
EPS (Rs)*6.285.4914.3812.3511.963.2523.5421.748.31
* EPS is on current equity of Rs 21.01 crore, Face value of Rs 1, 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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