Comments
Leading auto parts maker Sundram Fasteners has reported strong numbers for fourth quarter and full year 2015-16, while its consolidated performance faced some challenges.
For the quarter ended March 31, 2016, its net profit stood at ₹75 crore compared with ₹16 crore in a year-ago period, aided by higher operating profit on the back of strong topline.
Net profit of more than ₹200 crore is its highest-ever number since its inception.
Its gross profit almost doubled to ₹82 crore compared with ₹43 crore.
Net sales grew 18 per cent to ₹688 crore from ₹582 crore in a year-ago period.
For the full year ended March 31, 2016, the company’s net profit was up 56 per cent at ₹211 crore compared with ₹135 crore.
Its profit before interest, depreciation and tax stood at ₹420 crore against ₹357 crore, an increase of 17.5 per cent.
Net sales were up at ₹2,562 crore against ₹2,330 crore.
Its exports stood at ₹908 crore against ₹899 crore. “There has been a sharp increase in after-market sales due to specific initiatives undertaken by the company. We experienced a strong demand for its hot forged parts, power train components and wind energy fasteners,” said a company statement.
On a consolidated basis, the company’s net profit reported a decline at ₹122 crore for the year ended March 31, 2016, against ₹132 crore in the previous fiscal.
However, net sales reported a modest increase at ₹3,196 crore when compared with ₹3,072 crore. The efficient working capital management led to reduction in borrowings and enabled the company to contain its interest costs.
Consequently, the company has a strong balance sheet with an all-time low debt-equity ratio of 0.57, the statement added.
Global operationsIts earnings per share surged to a new high of ₹10.05 and net worth crossed ₹Rs 1,000 crore.
The company said it restructured its international operations and created a new subsidiary called Sundram International based in the UK. Its Chinese subsidiary Sundram Fasteners (Zhejiang) Ltd and the UK subsidiary Cramlington Precision Forge Ltd have become subsidiaries of Sundram International Ltd.
As a part of restructuring, the company also divested the German subsidiaries, Peiner Umformtechnik and its affiliates.
“The restructuring measures will strengthen its balance sheet and improve its shareholder value,” it said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.