The Hindu Business Line : Sundram Fasteners posts Q4 loss

Chennai, June 4 Sundram Fasteners Ltd has posted a loss of Rs 5.25 crore on an income of Rs 225.76 crore for the quarter ended March 31, 2009 against a profit of Rs 5.41 crore on income of Rs 312.44 crore for the same period in the previous year.

For 2008-09, it has reported a 75 per cent drop in its net profit to Rs 17.41 crore in fiscal 2008-09 against Rs 69.48 crore registered previously.

This is in spite of the company witnessing 4 per cent increase in its net sales to Rs 1,262 crore in the year (Rs 1,206 crore).

Domestic sales dropped by 4 per cent to Rs 833 crore (Rs 864 crore) while exports grew by 26 per cent to Rs 429 crore (Rs 341 crore) during the period.

A press release from the company said that repeated hikes in interest rates and increased working capital requirements resulted in higher interest charges at Rs 38.5 crore (Rs 27 crore).

Besides, foreign exchange fluctuations resulted in a loss of Rs 60.7 crore during the year as against a gain of Rs 13.15 crore in the previous year.

The company has announced to pay a dividend of Re 0.50 per share of Re 1 each.

As a matter of prudent policy the company decided not to exercise the option provided under Accounting Standards AS-11 as amended by Company (Accounting Standards) Amendment Rules 2009 and continues to follow its past practice of recognising exchange variations in profit and loss account.

The company’s sales to General Motors Corporation do not constitute a sizeable portion of its overall business. Therefore the US company’s petition seeking court protection under bankruptcy proceedings will not affect its performance, the release added.

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