Auto parts maker Sundram Fasteners has reported a net profit of Rs 112.55 crore for the quarter ended June 30, 2021, when compared with a net loss of ₹23.48 crore in the year-ago quarter.
The EBITDA for Q1 of this fiscal was at Rs 192.88 crore as against Rs 12.99 crore. The company has posted and sustained a higher EBITDA percentage on revenue from operations at 20.5 per cent. This has been due to stringent cost control measures and a strong operating performance, according to a statement.
“Despite the challenges posed by the second wave of the pandemic during the first quarter of FY2022, we managed to deliver a strong operating performance by judiciously planning our manufacturing and at the same time ensuring the health and safety of our people,” said Arathi Krishna, Managing Director, Sundram Fasteners Ltd.
The revenue from operations stood at Rs 938.81 crore for the first quarter of this fiscal, as against Rs 276.73 crore in the same period last fiscal.
Domestic sales were at Rs 559.93 crore as compared to RsS 132.85 crore. Export sales rose to Rs 356.33 crore when compared with Rs 135.02 crore in Q1 of last fiscal.
Its finance cost was lower at Rs 4.17 crore, as against Rs 7.91 crore due to a sharp reduction in borrowings during the quarter, attributable to the efficient working capital management and improved operating performance.
“The gradual opening up of the economy from the second quarter of FY2021 helped create an upward trend in demand as OEMs ramped up their production levels. However, the second wave of Covid-19 did cause pressure on the Indian automotive sector. This proved to be a challenge for several OEMs across the country, forcing them to cut production or suspend operations temporarily. Despite this, the cost and efficiency improvement measures enabled the company to sustain its operating and net margins,” she added.
On a consolidated basis, the company’s net profit stood at Rs 120.49 crore as against net loss of Rs 25.43 crore in the year-ago quarter. Its consolidated revenue grew to Rs 1,112.43 crore as against Rs 373.17 crore.