Leading auto parts and engineering company Sundram Fasteners Ltd reported a 16 per cent jump in standalone profit after tax (PAT) at ₹130.11 crore for the quarter ended June 30, 2022, compared with PAT of ₹112.55 crore in the second-Covid wave hit June 2021 quarter.
The EBITDA for June 2022 was at ₹215 crore against ₹193 crore in the same period of the previous fiscal, an increase of 11.4 per cent.
Revenue from operations stood at ₹1,240 croret (₹939 crore), an increase of 32 per cent.
Domestic sales were at ₹798 crore as against ₹560 crore, an increase of 43 per cent. Exports grew 14 per cent to ₹406 crore (₹356 crore).
Consolidated revenue and PAT stood at ₹1,410 crore (₹1,130 crore) and ₹138 crore (₹121 crore) respectively.
“The company has registered a strong operating performance and reported highest ever profit despite a challenging environment posed by the continuous increase in raw material prices, inflationary impact in indirect materials and steep increase in freight costs and other inputs. We continue to be cautiously optimistic about the ensuing quarters,” Arathi Krishna, Managing Director, Sundram Fasteners Ltd, said in a statement.
The company has planned an investment of ₹350 crore over five years for manufacturing Advanced Automotive Technology Components like powertrain sub-assemblies for electric vehicles (EV) and select Internal Combustion Engine (ICE) vehicles. The investments proposed to be made i are expected to provide a major thrust to the company’s exports in the years to come. Also, there is a significant potential for growth in the wind energy business. To meet the surge in demand, the company proposes to make additional investments of ₹300 crore over the next two years.
The company continued its efforts in developing new products such as tower fasteners, valve body housing and swash plate for hydraulic power systems, electric water pumps for passenger utility vehicles, and sintered pulleys for electric scooter application, which is expected to pave way for better business prospects in the future.