Comments
Leading auto parts maker Sundram Fasteners has reported 95 per cent increase in its net profit at ₹ 76 crore for the quarter ended June 30, 2016 when compared with ₹ 39 crore in the year-ago period, on the back of strong operating performance.
The earnings before interest, depreciation and taxes stood at ₹ 140 crore as against ₹ 95 crore.
“The EBIDTA margin has increased during the period due to volume growth caused by market buoyancy, product mix and specific cost reduction initiatives of the company. The interest cost has been contained within limits on account of better working capital management,” said a company statement.
The company posted revenues of ₹ 713 crore for the quarter ended June 30, 2016 as against ₹ 632 crore in the same period in the previous year.
The export sales stood ₹ 247 crore as against ₹ 226 crore. Domestic sales grew by 15 per cent at ₹ 455 crore as against ₹ 396 crore.
The company said auto parts industry was benefitted by the growth recorded by the automotive industry, which will continue to do so due to the prospect of a good monsoon, robust economic growth and higher disposable income available due to the recent pay commission increase.
Sundram Fasteners is also actively investing in other automotive component verticals which will bolster the profitability of the company. The continued prospect of sourcing of Indian automotive components from the USA also augurs well for the export market, it said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.