The Hindu Business Line : Sundram Fasteners Q4 net dips on higher input costs

Chennai, June 29 While reporting a higher net profit for the full year 2006-07, Sundram Fasteners has announced a fall in the profit for the fourth quarter of the year, because of increasing raw materials costs.

The company’s Q4 net was Rs 7.46 crore against Rs 19.16 crore in the corresponding period of 2005-06, but this was after providing Rs 3.48 crore (nil previously) against diminution of value of investments.

This was despite the turnover being higher at Rs 290.77 crore (Rs 280.92 crore) and a net gain of interest of Rs 72 lakh compared with an interest charge of Rs 4.40 crore previously.

What has brought the net down is the rise in raw material costs, which stood at 48 per cent of the sales in the quarter under review, compared with 43.5 per cent in the same quarter of the previous year.

For the full year, the TVS group company has reported a turnover of Rs 1,199 crore against Rs 1,062 crore previously.

Net profit was Rs 71 crore against Rs 62 crore.

“Higher costs of raw materials and other inputs and strengthening of the rupee made inroads into the operating margins,” notes a press release from the company.

EPS worked out to Rs 3.42 (on shares of face value of Re 1 each), against Rs 2.96 for the previous year.

The company had paid first interim dividend of Rs 0.85 per share prior to an issue of bonus shares in the ratio of 1:1 and a second dividend of Rs 0.45 a share after the bonus issue.

The two interim dividends absorbed Rs 18.39 crore.

“The directors have not recommended any final dividend,” the release says.