Sundram Fasteners posts drop in Q3 net, revenue; opens ₹110-cr unit in Sri City

Our Bureau Chennai | Updated on January 29, 2020

Sundram Fasteners’ Chairman, Suresh Krishna, inaugurating the production line of new plant at the Sri City SEZ, in Andhra Pradesh

The auto components company posted drop in net profit, revenue in Q3

Leading auto component company Sundram Fasteners has commissioned its ₹100-crore factory at Sri City, Andhra Pradesh - a private SEZ located about 65 km from Chennai.

The unit has been set up to manufacture and export high precision engineering components to a leading European manufacturer for onward supply to its global marquee OEM customers for their programmes.

The unit has commenced commercial production and has made the first shipment to Germany on January 27, 2020.

The new unit is expected to provide further impetus to the company’s export thrust through the addition of products to its portfolio as well as diversifying its export customer base, according to a company statement.

The company has reported a drop in net profit at ₹103 crore for the quarter ended December 31, 2019 when compared with ₹112 crore in the year-ago period. The earnings before interest, depreciation and taxes (EBITDA) stood at ₹125 crore as against ₹195 crore. The company said that its EBITDA of 18 per cent was healthy due to the operational efficiencies and cost control measures, said the statement.

Slowdown in auto sector

Revenue from the operations reported a significant drop at ₹693 crore as against ₹1,019 crore in the year-ago quarter, amid slowdown in the auto industry. Domestic sales were lower at ₹446 crore (₹608 crore), while export sales declined to ₹224.18 crores from ₹371 crore.

The tax expenses for the quarter includes a credit towards restatement of deferred tax liability pursuant to an amendment to tax laws in terms of which the Company has chosen to adopt the lower rate of corporate tax.

On a consolidated basis, the company’s net profit was lower at ₹104 crore as against ₹117 crore, while revenue dropped to ₹835 crore when compared with ₹1,159 crore.

Published on January 29, 2020

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