Sundaram Clayton hits record high on growth plans, Q1 results

The stock has surged by 12% to Rs 2,213 after the company spoke about plans to set up a die-casting unit in the US.

Shares of Sundaram Clayton surged 12% to Rs 2,213, also their record highs on the BSE, after the auto parts and equipment manufacturer announced that it was planning to set up a die-casting unit in the United States at an initial investment of Rs 50 crore.

On August 4, 2015, the board of directors of the company had approved in-principle, an investment of a sum not exceeding US $8 million in tranches by the company in a die-casting facility proposed to be established in United States (U.S) for catering to the needs of overseas customers, Sundaram Clayton said in a BSE filing.

Meanwhile, the company had reported a strong 45% year-on-year (YoY) growth in standalone net profit at Rs 33.81 crore for the quarter ended June 30, 2015 (Q1), on the back of higher other income.

Total income from operations during the quarter under review grew 9.2% at Rs 345 crore, while other income jumped 53% at Rs 31 crore on a Y-o-Y basis.

At 11:00 AM, the stock was up 9% at Rs 2,165 on the BSE. A combined 3,275 shares changed hands on the counter on the BSE and NSE.