Sundram Fasteners Q2 profit stood at Rs 117.93 crore

Sundram Fasteners Limited (SFL's) net profit for the quarter ended September 30, 2023 stood at Rs 117.93 crores as against Rs 111.75 crores during the previous year.

Revenue from operations was at Rs 1,234.31 crores for the quarter ended September 30, 2023 as against Rs 1,218.19 crores during the same period in the previous year. 

Company's domestic sales for the quarter ended September 30, 2023 were at Rs 861.78 crores as against Rs. 802.45 crores during the previous year.

Export sales for the quarter ended September 30, 2023 were at Rs 337.01 crores as against Rs. 377.78 crores during the previous year.

The earnings before interest, depreciation and taxes (EBITDA) for the quarter ended September 30, 2023 was at Rs. 205.27 crores as against Rs. 193.22 crores during the same period in the previous year.  The Company has improved its EBITDA margin at 16.5% as against 15.8% during the same period in the previous year. This has been due to stringent cost control measures and improvement in operational efficiency.

The finance cost for the quarter ended September 30, 2023, after accounting for exchange differences, was at Rs. 3.90 crores, as against Rs. 4.33 crores for the corresponding quarter in the previous year. The reduction in finance costs was due to a reduction in borrowings on account of efficient working capital management. 

The Company has a strong balance sheet with an all-time low debt-equity ratio of 0.11, according to company's statement.

Consolidated Financials
The Company’s consolidated revenue from operations posted for the quarter ended September 30, 2023 was at Rs 1,421.82 crores as against Rs 1,401.65 Crores during the same period in the previous year. 

The consolidated net profit for the quarter ended September 30, 2023 was at  Rs 133.05 crores as against Rs 116.78 crores during the previous year.

The revenue from operations was at Rs 2,449.96 crores for the half-year ended September 30, 2023 as against Rs 2,457.83 crores during the same period in the previous year. The net profit for the half-year ended September 30, 2023 was at Rs 230.46 crores as against net profit of Rs. 241.86 Crores during the same period in the previous year. 

The Company’s consolidated revenue from operations posted for the half-year ended September 30, 2023 was at Rs 2,832.58 crores as against Rs 2,811.77 Crores during the same period in the previous year.  The consolidated net profit for the half-year ended September 30, 2023 was at Rs 261.79 crores as against net profit of Rs. 254.81 Crores during the same period in the previous year.

The Board at its meeting held today declared an interim dividend of Rs. 2.68 per share 268%) for the financial year 2023-2024. 

Capital expenditure
The Company has incurred capital expenditure for the half-year ended September 30, 2023 in line with its planned capital expenditure of Rs 300 crores 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.