Sundram Fasteners posts 15.6 pc rise in Q1 profit

Auto components maker Sundram Fasteners on Friday reported a 15.6 per cent increase in standalone net profit to Rs 130.11 crore in the first quarter ended June 30.

The standalone net profit for the company was Rs 112.55 crore in April-June period of last year, the company said in a statement.

The revenue from operations stood at Rs 1,239.64 crore for the reporting quarter, 32 per cent higher over Rs 938.81 crore clocked in the same period FY 2021-22.

The company said it has planned an investment of Rs 350 crore over a period of five years for manufacturing advanced automotive technology components such as powertrain sub-assemblies for EVs and select Internal Combustion Engine (ICE) vehicles.

The investments proposed are expected to provide a major thrust to the company's exports in the future, Sundram Fasteners said.

The domestic sales rose 42 per cent to Rs 798.50 crore in the June quarter as against Rs 559.93 crores during the previous year while export sales posted an increase of 13.9 per cent at Rs 405.76 crore from Rs 356.33 crore in Q1FY22, the company said.

The company has registered a “strong” operating performance and reported “highest-ever” profit despite a challenging environment posed by continuous increase in raw material prices, inflationary impact in indirect materials and steep increase in freight costs and other inputs, said Arathi Krishna, Managing Director at Sundram Fasteners Limited.

“We continue to be cautiously optimistic about the ensuing quarters,” she added.

There is a significant potential for growth in the wind energy business and to meet the surge in demand, the company proposes to make additional investments of Rs 300 crore over the next two years, it said.