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The sluggish commercial vehicle industry has dragged down Sundaram Clayton’s second quarter net profit by 17 per cent (year on year) to Rs 13.6 crore. Net sales rose marginally to Rs 247 crore (Rs 240 crore).
Sundaram Clayton primarily supplies to heavy commercial vehicles and tractors; Hyundai is its only passenger car customer.
“With the domestic commercial vehicle industry facing a downturn, we were compensated by exports, which accounted for 40 per cent of our business,” said H. Lakshmanan, Executive Director.
The company expects the downturn in the CV industry to continue in the coming quarters too. “This year we do not see much growth. We will try to control costs so that our bottomline is not eroded completely.”
New orders are also coming in, but those will take time before they translate into significant business, said Lakshmanan.
Sundaram Clayton is also experimenting with “new processes and new castings”. Traditionally, the company has made aluminium castings. It is now running trials on magnesium die castings.
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