Sundram Fasteners surges on strong Q2 results

The hit a 52-week high of Rs 352, up 9% on BSE after the company posted 82% YoY growth in profit at Rs 77 cr in Q2,

Sundram Fasteners has surged 9% to Rs 352, also its 52-week high on BSE in intra-day trade, after the company posted a strong 82% year on year (YoY) growth in standalone net profit at Rs 77 crore for the quarter ended September 30, 2016 (Q2FY17). The auto parts & equipment firm had a profit of Rs 42 crore in the same quarter year ago.

Total revenue from operations grew 11% at Rs 738 crore against Rs 660 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 19.2% in Q2F17 from 15.7% in Q2FY16.

“The Ebitda margin has increased during the period due to volume growth, product mix and specific cost reduction initiatives of the company,” Sundram Fasteners said in a statement.

The board has declared an interim dividend of 170% or Rs 1.70 per share on face value of Re 1 each.

At 01:59 pm, the stock was up 8% at Rs 349 on BSE. The trading volumes on the counter jumped nearly five-fold with a combined 2.54 million shares changed hands on BSE and NSE.