Sundram Fasteners reports revenue and sales growth in Q2FY23 but profits are down

Sundram Fasteners reported a 14 percent growth in revenue during the second quarter of FY23 at Rs 1,218.19 crore as against Rs 1,063.07 crore during the same period in the previous year.  

The domestic sales for the quarter ended September 2022 were at Rs 802.45 crore as against Rs. 663.26 crore during the previous year, posting a robust growth of 21 percent. The export sales for the quarter ended September 2022 were at Rs 377.78 crores as against Rs. 362.81 crores last year, an increase of 4.1 percent.   

Despite the impact of heavy inflationary pressures experienced in the raw material costs, the company said that the drop in profits was not significant. The Company has sustained earnings before interest, depreciation and taxes (EBITDA) for the quarter ended September 2022 at Rs. 193.22 crore as against Rs. 200.95 crore during the same period in the previous year, said the company in a statement. 

The Profit before Tax (PBT) for the quarter ended September 30, 2022 was at Rs.149.46 crore as against Rs. 160.86 crore during the same period in the previous year. The net profit for the quarter ended September 30, 2022 was at Rs 111.75 crore as against net profit of Rs. 120.16 crore during the same period in the previous year. Earnings per share for the quarter ended September 30, 2022 amounted to Rs. 5.32 and was Rs. 5.72 in the corresponding period last year.

Company’s consolidated revenue from operations posted for the quarter ended September 2022 was at Rs 1,401.65 crore as against Rs 1,242.26 crore during the same period in the previous year, an increase of 12.8 percent. The consolidated net profit for Q2FY23 was at Rs 116.78 crore as against net profit of Rs. 123.91 crore during the same period in the previous year. The consolidated earnings per share (EPS) for the quarter ended September 30, 2022 amounted to Rs. 5.49 and was Rs. 5.83 in the corresponding period last year. 

The Board at its meeting held today declared an interim dividend of Rs. 3.57 per share (357 percent) for the financial year 2022-2023. The Board further declared an additional special dividend of Rs. 2.00 per share (200 percent) to commemorate the 60th year of the incorporation of the Company.

The Board at its meeting held today, approved the scheme of amalgamation of Sunfast TVS and TVS Engineering with Sundram Fasteners and their respective shareholders. The amalgamation will facilitate operational synergies, efficient allocation of capital and provide a platform for integration of the defence and aerospace business of the Company, the statement added.