Sundram Fasteners Q1 profit down 7% at Rs 129cr

Auto components maker Sundram Fasteners reported a 7% decline in its consolidated profit for the April-June quarter (Q1 FY24) at Rs 128.74 crore. The Chennai-based firm registered a consolidated profit at Rs 138.03 crore during the corresponding quarter of last year.

Meanwhile, the company’s revenue from operations also dipped 2% in Q1 FY24 at Rs 1,215.65 crore as compared to Rs 1,239.64 crore during the same period in the previous year.

The domestic sales for the quarter ended June 30, 2023 were at Rs 821.97 crore as against Rs. 798.50 crore during the previous year.

According to the company, the export sales were impacted by the slowdown in the US market. The export sales for the quarter ended June 30, 2023 were at Rs 347.99 crore as against Rs 405.76 crore during the previous year.

During the quarter under review, the company’s earnings before interest, depreciation, and taxes (EBITDA) stood at 197.31 crore as against Rs. 214.86 crore during the same period in the previous year. Despite headwinds in the export markets, the Company has maintained its EBITDA margin at 16.2%. The softening of commodity prices and favorable product mix has resulted in improvement in gross margin from 54.5% to 55.8%.

The company has incurred capital expenditure for the quarter ended June 30, 2023 in line with its planned capital expenditure of Rs 300 crore for the financial year 2023-24.

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