The Hindu Business Line : Sundram Fasteners net up at Rs 57.90 cr

RISE in cost of steel has affected Sundram Fasteners' performance in 2003-04. The company's Rs 12.52-crore rise in profit has almost entirely come from saving in interest cost.

Net profit for the year increased to Rs 57.90 crore from Rs 45.38 crore for 2002-03. The company's board has recommended a final dividend of 80 paise a share (80 per cent), taking the total dividend to Rs 1.40 per share. (Sundram Fasteners' shares are of a face value of Re 1 each.)

The company, a manufacturer of high tensile fasteners for automobile applications, suffered a steep rise in raw material costs on account of the hikes in steel prices. Raw material costs increased from 35 per cent of sales in 2002-03 to 42.21 per cent last year.

Turnover rose to Rs 689.12 crore from Rs 458.83 crore previously — an increase of Rs 230.29 crore. But the last quarter alone contributed Rs 166 crore to this increase. Turnover in the January-March quarter increased to Rs 292.68 crore from Rs 126.44 crore. This sharp rise came about because the subsidiary company, TVS Autolec Ltd, was merged with Sundram Fasteners in the last quarter.

Export turnover increased to Rs 170 crore from Rs 96 crore in 2002-03, but again the increase is with the export turnover of TVS Autolec Ltd. The most positive feature for the company was the saving in interest costs. It achieved an interest cost saving of Rs 5.52 crore against an interest expenditure of Rs 6.10 crore in 2002-03 — a net gain of Rs 11.62 crore.