Sundram Fasteners posts 53% fall in PBT at Rs 70 cr in Q4; income dips 27%

Sundram Fasteners Ltd (SFL), part of the $8.5 billion TVS Group, posted a decline of 52.7 per cent in its profit before tax at Rs 70.22 crore during the quarter ended March 31, 2020, as compared to Rs 148.41 crore during the same period last year. The total income declined 26.95 per cent during the quarter to Rs 836.08 crore as compared to Rs 1144.63 crore registered in the corresponding period of the last year.

In view of the impact of coronavirus pandemic, the remuneration payable to the employees of SFL has been reduced by 15 per cent to 35 per cent, said the company. While chairman Suresh Krishna has taken a voluntarily pay cut of 50 per cent, chairman and managing director Arathi Krishna and joint managing director Arundathi Krishna have voluntarily waived the commission payable to them for the financial year 2020-2021 resulting in a 70 per cent cut in their remuneration.

The company, which supplies to the automotive sector and others, incurred Rs 304.70 crore towards capital expenditure as part of capacity expansion of existing lines of business as well as establishing a new facility for high precision engineering components, at Sri City, SEZ. The SEZ unit saw an initial investment of Rs 100 crore.

The unit, which commenced commercial production and made the first shipment in January, 2020, has been set up to manufacture and export components to a leading European manufacturer for onward supply to its global marquee OEM customers for their existing as well as new programmes. The new unit will provide further impetus to the company’s export thrust through an addition of products to its portfolio as well as diversifying its export customer base, said the company.