Auto component firm Sundram Fasteners posts 6% dip in Q2 net profit

Board approves amalgamation of Sunfast TVS and TVS Engineering with Sundram Fasteners

Auto component major Sundram Fasteners (SFL) has reported a 6 per cent dip in consolidated net profit in the second quarter of the financial year 2022-23 at Rs 116.78 crore, compared to Rs 123.91 crore in the same period the last financial year.

The company’s revenue for the quarter ended on September 30 this year was Rs 1,401.65 crore, up 13 per cent compared to Rs 1,242.26 crore in the same period in the previous year. The consolidated earnings per share (EPS) for the quarter ended September 30, 2022 amounted to Rs 5.49 and was Rs 5.83 in the corresponding period last year.

The company’s board approved the scheme of amalgamation of Sunfast TVS and TVS Engineering with Sundram Fasteners and their shareholders. “The amalgamation will facilitate operational synergies, efficient allocation of capital and provide a platform for integration of the defence and aerospace business of the Company,” said a company statement on Wednesday.

On a standalone basis, Sundaram Fasteners reported a 7 per cent dip in net profit to Rs 112 crore during the quarter under review, as against Rs 120 crore last year. The domestic sales for the quarter ended September 30, 2022 were at Rs 802.45 crore as against Rs 663.26 crore during the previous year, posting a robust growth of 21 per cent. The export sales for the quarter ended September 30, 2022 were at Rs 377.78 crore as against Rs 362.81 crore, an increase of 4.1 per cent.