Sundaram Fasteners reported flat top line sales revenues for the Sep-20 quarter at Rs889.33cr. While the sales did dip sharply in the Jun-20 quarter due to a slowdown in auto ancillary demand and overall plant shutdowns, the bounce has brought the sales back to pre-COVID levels.
For the Sep-20 quarter, the operating profits are higher by 21.5% at Rs133.68cr. This is largely on the back of lower employee benefit costs and lesser finance cost in the quarter. This also led to the operating margin by 265 bps to 15.03% in the Sep-20 quarter.
Net profits for the Sep-20 quarter were higher by 45.3% at Rs103.64cr due to much better cost management in the quarter. As a result, the net profit margins or NPM expanded by 363 bps to 11.65% in the Sep-20 quarter, riding on a return to demand normalcy.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Sundaram Fasteners |
|
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
889.33 |
889.18 |
0.02% |
373.17 |
138.32% |
|
Operating Profit |
133.68 |
110.04 |
21.48% |
-29.16 |
-558.44% |
|
Net Profits |
103.64 |
71.33 |
45.30% |
-25.43 |
-507.55% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
4.87 |
3.36 |
|
-1.27 |
|
|
OPM |
15.03% |
12.38% |
|
-7.81% |
|
|
Net Margins |
11.65% |
8.02% |
|
-6.81% |
|
Key takeaways from the Sep-20 quarterly results
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In fiscal year 2021, Sundaram Fasteners will be spending a sum Rs150cr towards capital expenditure towards expansion of capacity in its existing lines of business. Nearly half of this outlay has already been incurred in this year.
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The company has also set up a SEZ unit in the state of Andhra Pradesh at an investment of Rs100cr which has already received a major order from a European manufacturer to export high precision engineering components.
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