Sundram Fasteners clocks Rs 95.22 Cr Q4 standalone net profit

Sundram Fasteners Ltd, a TVS Group company, today said it registered a standalone net profit of Rs 95.22 crore in the fourth quarter of 2017-18 fiscal, an increase of 8.62 per cent over the corresponding quarter a year ago.

The increase was due to higher production of passenger, utility and light commercial vehicles and two wheelers, company officials said.

The city-based firm had registered a standalone net profit of Rs 87.66 crore during same period last year.

Standalone profits surged 16.47 per cent to Rs 367.47 crore for the financial year ending March 31, 2018 from Rs 315.48 crore in the previous financial year, company Non-Executive Chairman and Director Suresh Krishna said.

"Automobile industry is groing through a big boom. I do not think we ever had such an updraft on the buoyancy of the industry", he told reporters here.

For the year ending March 31, 2018 the standalone total income grew to Rs 3,478.66 crore, from Rs 3,184.46 crore registered during corresponding period of last year.

The domestic sales, net of excise duties for the year ending March 31, 2018 were at Rs 2,146.76 crore, as against Rs 1,836.61 crore registered during same period of last year, he said.

Stating that India was on the 'upward curve' in economic growth, he said, "if industry is growing at 20 per cent, Sundram Fasteners at 15 per cent. By 2030, the car industry will become 10 million units per annum from three million (now)".

On the capital expenditure plans, Arathi Krishna, who was redesignated as the company Managing Director, said they have earmarked Rs 350 crore for the current financial year.

The company had spent about Rs 300 crore for the last financial year 2017-18, she said.

"This (financial) year capital expenditure will be Rs 350 crore. That will be for capacity expansion plans. Last year, capex was about Rs 300 crore", she said.

In the last five years, the company witnessed a double digit compounded annual growth rate and she expressed confidence that the company would continue to clock a "double digit growth" in coming years. "Hopefully, we will continue to have a double digit growth in coming years", she said.

On the exports front, Sundram Fasteners registered sales worth Rs 1,144.46 crore for the year ending March 31, 2018 as against Rs 1,044.11 crore registered during same period of last year.

"Currently, exports constitute about 30 per cent of our sales. 80 per cent of our exports are to United States and remaining to Europe" she said.

Responding to a query, she said, export contribution to the total sales for the company would increase to 50 per cent over the next five years from the current 30 per cent.

To a query about the move to electric vehicles, Suresh Krishna said lot of questions need to be answered on the sourcing of parts, subsidy from the government would be.

"Where are you (industry) going to source cobalt and lithium (for the batteries). How about the subsidy government going to give (for manufacturing electric vehicles). How are you going to dispose the battery. I think it will take longer time for India (on electric vehicles)..," Krishna said.

On the company's China operations, he said, the company clocked revenues of Rs 250 crore since it operations began 11 years ago.

Recently, the China subsidiary, made about Rs 100 crore investments for setting up the second foundry, he said.

"Our (China) factory has been doing quite well and will continue to do well in the next two-three years", he said.