Sundram Fasteners Q3 profit falls 17% on cost pressures

BL Chennai Bureau Updated - February 10, 2022 at 08:51 PM.

Auto parts maker says increase in commodity prices, costs of logistics and other inputs was mitigated through cost reduction measures and price support from customers

The board declared an interim dividend of ₹6.45 per share

Leading auto parts maker Sundram Fasteners has reported a 17 per cent drop in its net profit to ₹103 crore for the quarter ended December 31, 2021, when compared with ₹124 crore in the same quarter a year ago.

EBITDA for Q3 of this fiscal was at ₹180 crore against ₹206 crore in December 2020 quarter. Sundram Fasteners posted EBITDA percentage on revenue from operations at 17.6 per cent against 21.9 per cent in the year-ago quarter.

The increase in commodity prices, as well as the costs of logistics and other inputs, had a significant impact on the margins which was mitigated through cost reduction measures and price support from customers, said a statement by Sundram Fasteners.

Revenue from operations stood at ₹1,024 crore for the third quarter of this fiscal against ₹942 crore last fiscal.

Domestic sales were at ₹658 crore (as compared to ₹637 crore last fiscal). However, Sundram Fasteners maintained the momentum in exports as it grew 21 per cent to ₹336 crore from ₹277 crore in Q3 of last fiscal.

Profit before tax was at ₹138.48 crore (₹166 crore). Earnings per share for the quarter ended December 31, 2021, amounted to ₹4.91, down from ₹5.91 a year ago.

On a consolidated basis, Sundram Fasteners’ net profit stood at ₹110 crore (₹144 crore). Consolidated revenue grew to ₹1,208 crore (₹1,109 crore).

For the 9 months ended December 31, 2021, the company’s standalone net profit was higher at ₹336 crore when compared with ₹198 crore in the same period a year ago. Revenue from operations grew 52 per cent to ₹3,026 crore from ₹1,986 crore in the previous fiscal.

The Sundram Fasteners board declared an interim dividend of ₹6.45 per share (645 per cent) for FY22.

Published on February 10, 2022 12:34

This is a Premium article available exclusively to our subscribers.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.
Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

TheHindu Businessline operates by its editorial values to provide you quality journalism.

This is your last free article.