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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.
December 2015 quarter results
For the quarter ended December 2015, it registered a 4% growth in sales to Rs 613.90 crore.
Domestic sales accounted for Rs 390.80 crore (up 13%).
OPM jumped 310 basis points to 15.4% which saw OP rising 30% to Rs 94.71 crore.
Other income fell 76% to Rs 1.25 crore and interest cost fell 19% to Rs 16.26 crore. Interest cost includes forex loss of Rs of Rs 11.21 crore against Rs 14.66 crore.
As depreciation grew 3% to Rs 22.43 crore, PBT stood at Rs 57.27 crore, up 59%.
As tax soared 165% to Rs 15.52 crore, PAT ended up 39% to Rs 41.75 crore.
Nine months results
For the nine months ended December 2015, it registered 7% growth in sales to Rs 1906.15 crore.
Nine months exports sales stood at Rs 667.90 crore (against Rs 683.27 crore), down 2%.
OPM fell 30 basis points to 14.6% which saw OP growth at 5% to Rs 278.92 crore.
Other income jumped 55% to Rs 14.54 crore. Other income included foreign exchange gains of Rs 12.05 crore against Rs 4.66 crore.
Interest cost fell 26% to Rs 41.45 crore. Interest cost includes forex loss of Rs of Rs 26.49 crore against Rs 39.86 crore.
As depreciation grew 4% to Rs 67.16 crore, PBT grew 19% to Rs 184.85 crore.
EO loss stood at Rs 2.50 crore against nil. Thus PBT after EO rose 17% to Rs 182.35 crore.
EO represents diminution in value of investments in subsidiary company named Peiner Umformtechnik GmBH, Germany recognized in the current quarter against the provision made in FY 2015 amounting to Rs 10 crore.
As tax grew 29% to Rs 46.57 crore, PAT ended up 14% to Rs 135.75 crore.
Other details
Employee benefit expenses includes a provision of Rs 1.82 crore towards bonus payable to employee according to the new payment of Bonus (Amendment) act which has retrospective effect from 1 April 2014.
Valuation
The share price trades at Rs 151.
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