PremiumWith a market capitalization of ₹20,036.79 Crore, Sundram Fasteners Ltd. is a large-cap company that belongs to the consumer discretionary industry. The company is a global leader in manufacturing components such as fasteners, power train, sintered metal products, iron powder, cold extruded parts, radiator caps, water pumps, oil pumps and wind energy components for the automotive, infrastructure, windmill and aviation sectors. The company has spanned its business in India, China, Germany, USA, UK, Italy, France, and Brazil. The company has declared its Q2 results along with dividend for the financial year ending March 31, 2023.
The company has said in a stock exchange filing that “Further to our letter dated November 3, 2022 under Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), we wish to inform you that the Board of Directors at their meeting held today (Tuesday, November 8, 2022) has approved payment of Interim Dividend @ Rs. 3.57 per share of Re 1/- each for the financial year ending March 31, 2023 and a Special Dividend @ Rs. 2.00 per share of Re. 1/- each to commemorate the 60thyear of Incorporation of the Company. The company has fixed November 18, 2022 (Friday) as the record date and informed stock exchanges regarding the purpose “For the purpose of determination of shareholders eligible to receive the Interim Dividend and Special Dividend for the financial year ending March 31, 2023. The interim dividend will be paid to the shareholders on November 30, 2022 (Wednesday)."
On a standalone basis, the revenue from operations grew by 14.6% to ₹1,218.19 crores for the quarter that ended on September 30, 2022, from ₹1,063.07 crores for the same quarter last year. Domestic sales rose dramatically by 21% during the quarter that ended on September 30, 2022, reaching Rs. 802.45 crores as opposed to Rs. 663.26 crores the year before. In Q2FY23, export sales increased by 4.1% to ₹377.78 crores from ₹362.81 crores in Q2FY22. The company has reported earnings before interest, depreciation and taxes (EBITDA) for Q2FY23 at Rs. 193.22 crores as against Rs. 200.95 crores during the same period in the previous year. For the quarter that ended on September 30, 2022, the Profit before Tax (PBT) was Rs. 149.46 crores as opposed to Rs. 160.86 crores for the year-ago quarter. The net profit for Q2FY23 was at ₹111.75 crores as against a net profit of Rs. 120.16 Crores in Q2FY22. The earnings per share (EPS) for Q2FY23 amounted to Rs. 5.32 and was Rs. 5.72 in Q2FY22.
The company's consolidated revenue from operations reached ₹1,401.65 crores in Q2FY23 as against ₹1,242.26 Crores during Q2FY22, representing a YoY growth of 12.8%. For the quarter that ended on September 30, 2022, the consolidated net profit was ₹116.78 crores as opposed to ₹123.91 crores in Q2FY22. The consolidated earnings per share (EPS) for the quarter ended September 30, 2022 dropped to Rs. 5.49 from Rs. 5.83 in the quarter ended September 2021.
The company has said in its financial report that its Board of Directors has “approved the scheme of amalgamation of Sunfast TVS Limited and TVS Engineering Limited with Sundram Fasteners Limited and their respective shareholders. The amalgamation will facilitate operational synergies, efficient allocation of capital and provide a platform for integration of the defence and aerospace business of the Company."
The shares of Sundram Fasteners closed today at ₹956.00 apiece, down 4.77% from the previous close of ₹1,003.85. The stock recorded a total volume of 246,401 shares compared to the 20-Day average volume of 132,778 shares. The stock has increased in value by 96.99% during the past five years, and it has produced a multibagger return of 102.86% over the past three years. The stock has gained 12.27% over the past year, and it has climbed 6.55% year-to-date (YTD) in 2022. For the quarter ended September or Q2FY23, the company reported a promoter shareholding of 48.51%, FIIs holding of 11.75%, DIIs holding of 18.72% and a public stake of 21.03%.