Sundram Fasteners has posted a 40 per cent dip (year-on-year) in net profit for the second quarter of the current financial year at Rs 18.43 crore, on the back of higher interest charges and depreciation. Net sales rose 17.3 per cent to Rs 545.20 crore, over the corresponding period last year.

Interest charges for the quarter amounted to Rs 8.71 crore, up 62 per cent from Rs 5.37 crore in the previous corresponding quarter. Foreign exchange fluctuations resulted in a charge of Rs 28.52 crore, against a gain of Rs 3.72 crore last year.

The quarter also saw higher depreciation at Rs 16.29 crore, up 20.5 per cent from last year.

For the first half of the financial year, net sales rose 22 per cent to Rs 1,066.64 crore (over the first half of the previous year). Net profit was marginally lower at Rs 53.36 crore (Rs 53.41 crore). Export sales for the period grew 37 per cent to Rs 313.57 crore. The domestic market grew 17 per cent to Rs 753.07 crore. Subsidiaries posted a profit before tax of Rs 9.73 crore (Rs 6.23 crore).

Sundram Fasteners' factory at the Special Economic Zone in Mahindra City (Chennai) has started production and supply of sprocket this month. Its facility at Mittamandagapet in Tamilnadu — for manufacture of fasteners for use in wind energy generators — is expected to commence production during the third quarter of this year.

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