Companies

Sundram Fasteners restores salaries back to pre-Covid levels

Our Bureau Chennai | Updated on February 04, 2021

Posts highest-ever PAT in Q3

Auto parts major Sundram Fasteners said the management has restored the salary of the employees back to pre-Covid-19 levels during the December quarter with improving business conditions.

In view of the impact of Coronavirus pandemic, the salaries were reduced in May 2020.

Supported by strong operating margin, the TVS Group company reported its highest-ever Profit after Tax (PAT) of ₹124.24 crore for the December quarter as against ₹103.06 crores during the same period in the previous year, an increase of 20.6 per cent.

The PAT in third quarter of last year included a one-time reversal of deferred tax provision amounting to ₹41.98 crore, according to a statement.

The PBT stood at ₹166 crores as against ₹81.13 crore, a significant increase of 104.6 per cent.

The EBITDA for the quarter ended December 31, 2020 was at ₹205.85 crore as compared to ₹124.54 crore, an increase of 65.3 per cent.

The company has sustained a higher EBITDA per centage on revenue from operations at 21.8 per cent as against 18 per cent. This has been due to the cost control measures and improvement in operational efficiency. With rising commodity prices, the company continues to exercise stringent measures to contain its operating costs to ensure its operating margins are sustained, it said.

Its revenue from operations grew 36 per cent at ₹942.20 crore for the December 2020 quarter as against ₹692.80 crore in the year-ago quarter. Domestic sales grew 43 per cent at ₹637.01 crore as against ₹446.05 crore; while export sales jumped 24 per cent at ₹277.20 crore (₹224.18 crore).

The Board approved re-appointment of Suresh Krishna (84), Chairman and Non-Executive Director of the Company for a period of five years, effective July 1, 2021 and re-appointment of Arathi Krishna, Managing Director for a period of five years, effective May 3, 2021.

Published on February 04, 2021

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