Sundaram Fasteners Posts 96% Rise In Q1 Profit

Chennai: Sundaram Fasteners, part of the $6-billion TVS Group, has reported a 96.1 per cent rise in standalone net profit at Rs 75.55 crore for the fiscal first quarter.

The Chennai-based auto-component manufacturer had posted a standalone net profit of Rs 38.51 crore for the corresponding period a year ago, it said in a filing to the BSE.

Total revenue from operations jumped 12.8 per cent to Rs 713 crore, as against Rs 631.94 crore in the year-ago period.

The earnings before interest, depreciation and taxes increased to Rs 139.96 crore for the April-June quarter, as against Rs 94.70 crore a year ago.

The EBIDTA grew in the backdrop of volume growth, product mix and specific cost reduction initiatives, it said. 

While domestic sales during the quarter ending June 30 grew 15.1 per cent to Rs 455.25 crore, as against Rs 395.64 crore a year ago, sales on the export front during the period rose to Rs 246.52 crore from Rs 225.81 crore earlier.

Noting that the company was actively investing in other automotive component verticals, the company said, continued prospect of sourcing of domestic auto components from US augurs well for overseas market.

Meanwhile, in another notification to stock exchanges, the company said Venu Srinivasan, the non-executive non-independent director has resigned from the board with immediate effect due to "personal reasons".

"His resignation has been taken on record by the Board of directors of the company at its meeting held today," it said.