Companies

Sundram Fasteners announces pay cut for staff, management

Our Bureau Chennai | Updated on June 11, 2020 Published on June 11, 2020

Leading auto parts maker Sundram Fasteners Ltd (SFL) has announced a reduction in salary for the staff and the management people.

In view of the impact of coronavirus pandemic, the remuneration payable to the employees of SFL has been reduced between 15-35 per cent.

The Chairman has voluntarily reduced his remuneration by 50 per cent and the Chairman, Managing Director and the Joint Managing Director have voluntarily waived the commission payable to them for the financial year 2020-21 resulting in a reduction in their remuneration by 70 per cent, according to a statement.

The TVS Group company has reported a significant decline in its net profit (standalone) at ₹46.80 crore for the March 2020 quarter as against ₹107.35 crore in the year-ago period. Revenue stood at ₹719.60 crore as against ₹1,004.25 crore.

Net profit falls

For the year ended March 31, 2020, Sundram Fasteners' net profit (standalone) declined to ₹314.04 crore when compared with ₹436.19 crore in the previous year.

EBITDA was lower at ₹568.07 crore (₹768.95 crore). Revenue decreased to ₹3,124.57 crore when compared with ₹3,990.22 crore in FY20. Domestic sales were lower at ₹1,900.97 crore (₹2,456.74 crore), while export sales stood at ₹1,117.16 crore (₹1,382.99 crore).

“Our key customers in the US faced a slowdown due to the cyclical nature of the industry,” said the statement.

The company’s new export unit at SriCity, Andhra Pradesh commenced commercial production and has made the first shipment to Germany in January.

The company has transferred ₹200 crore to general reserve and no final dividend was proposed.

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Published on June 11, 2020
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