Sundram Fasteners Ltd (SFL) on Thursday reported a net profit of Rs 124.24 crore, up 20 per cent for the quarter ended December 31. Net profit was Rs 103.06 crore in the same period a year ago. The third quarter of last year had one-time reversal of deferred tax provision amounting to Rs 42 crore. If that is excluded, profit after tax (PAT) growth for the quarter under review would be 103 per cent.
The total income rose by 35 per cent to Rs 945.41 crore from Rs 701.22 crore.
The domestic sales registered a growth of 42.8 per cent at Rs. 637.01 crore for the quarter under review as against Rs. 446.05 crore during the same period previous year on the back of strong demand. The export sales came in at Rs. 277.2 crore as against Rs. 224.18 crore, an increase of 23.7 per cent.
The company's standalone earnings before interest, taxes, depreciation, and amortization (EBITDA ) came in at Rs 205.85 crore as against Rs 124.54 crore, an increase of 65.3 per cent.
Commenting on the performance, Arati Krishna, managing director, said the company reported its highest ever standalone quarterly profit. The previous highest was Rs 111 crore during the third quarter of 2018-19.
The company sustained a higher EBITDA per cent on revenue from operations at 21.8 per cent.
She attributed the performance to increase in domestic demand, revival in export markets and is optimistic that the momentum will continue. The company also took cost control measures and improvement in operational efficiency. With rising commodity prices, the company continues to exercise stringent measures to contain its operating costs to ensure its operating margins are sustained.
Speaking about capex, Arati Krishna said: "Every year the company invested around Rs 300 crore during the past three years. But in 2020-21 the number would be lower due to the pandemic. By 2021-22, the company expects to go back to pre-covid levels when it comes to capex. Around 10 per cent of it will be towards aerospace and defence."
As a result of the economic impact of the coronavirus pandemic, employees' salaries was reduced in May 2020. As business improves, the management has restored salaries during the third quarter to pre-Covid levels.
SFL product range consists of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, hubs and shafts, tappets and iron powder. Over the years, the Company has acquired cutting-edge technological competencies in forging, metal forming, close-tolerance machining, heat treatment, surface finishing and assembly.