Sundram Fasteners Ltd., a leading manufacturer of automotive components, reported a consolidated net profit increase of 5.44% for the fourth quarter of FY24, reaching ₹134.41 crore compared to ₹127.47 crore in Q4 FY23. The company also saw its revenue from operations rise by 1.28% year-on-year to ₹1,466.48 crore for the quarter ending March 31, 2024.
Profit before tax for the fourth quarter stood at ₹178.12 crore, marking a 6.27% increase from ₹167.60 crore in the same period last year. On a standalone basis, Sundram Fasteners’ net profit jumped 13.62% year-on-year to ₹132.54 crore. Standalone revenue from operations increased by 3.37% to ₹1,278.13 crore, up from ₹1,236.39 crore in Q4 FY23.
Domestic and Export Performance
Domestic sales for Q4 FY24 were reported at ₹846.26 crore, reflecting a 2.92% increase from ₹822.25 crore in the previous year. The company’s export revenue reached ₹385.28 crore for the quarter, representing a 13.60% quarter-on-quarter growth and a 1.18% year-on-year increase.
EBITDA and Margins
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 9.52% to ₹220.80 crore in Q4 FY24, compared to ₹201.60 crore in the same quarter last year. The EBITDA margin improved to 17.3% from 16.3% in Q4 FY23, highlighting the company’s operational efficiency and cost management efforts.
Capital Expenditure and Expansion Plans
Sundram Fasteners has invested ₹343.45 crore towards capital expenditure aimed at capacity expansion of existing business lines and new projects. These investments are set to significantly enhance the company’s capability to meet customer demands in various segments, including internal combustion engine (ICE) vehicles, plug-in hybrid electric vehicles (PHEVs), and electric vehicles (EVs).
“The entire capital expenditure program has been financed out of internal accruals without any incremental borrowings,” said a company spokesperson. Additionally, the company has transferred ₹200 crore to its reserves, demonstrating robust financial health and prudent management.
Corporate Developments
The company announced the successful merger of its two wholly owned subsidiaries, Sunfast TVS and TVS Engineering, following approval from the Hon’ble National Company Law Tribunal, Chennai bench. This merger is expected to streamline operations and improve overall efficiency.
Dividend Announcement
Sundram Fasteners’ board has declared a second interim dividend of ₹4.17 per share for the financial year 2023-2024, rewarding shareholders and reflecting the company’s strong financial performance.
