Sundram Fasteners Q1 profit doubles to Rs 76 crore

Market buoyancy, product mix, cost cutting drive surge in bottom line; Venu Srinivasan quits as company board

Sundram Fasteners Ltd, a TVS Group company, has reported a 97 per cent growth in net profit at Rs 75.55 crore during the quarter ended June 2016 as against Rs 38.51 crore, a year ago.

Total income rose to Rs 713 crore from Rs 631.94 crore, a year ago.

The company's earnings before interest, depreciation and taxes increased to Rs 139.96 crore from Rs 94.70 crore. The EBITDA margin rose due to volume growth caused by market buoyancy, product mix and specific cost reduction initiatives of the company.

The company said the automotive industry and automotive component market have shown promising growth and will continue to do so due to the prospect of a good monsoon, robust economic growth and higher disposable income available due to recent pay commission increase.

Meanwhile, the company informed BSE that TVS Motor Chairman Venu Srinivasan, a non-executive non-independent director of the company has resigned from the Board effective, due to personal reasons. His resignation has been taken on record by the Board of Directors of the Company at their meeting held on August 9, 2016.