Industry

SFL ships first consignment from Sri City unit to Germany

Suresh Krishna, chairman, SFL, inaugurating the company’s new facility at Sri City.   | Photo Credit:

Sundram Fasteners Ltd. (SFL) has commenced operations at its new unit at Sri City, shipping out its first consignment to Germany on January 27.

SFL had invested about ₹100 crore in the special economic zone unit at Sri City in Nellore, Andhra Pradesh, the company said in a statement. The unit had been set up to manufacture and export high-precision engineering components to a leading European manufacturer for onward supply to its global marquee original equipment customers.

Export thrust

The unit will provide further impetus to SFL’s export thrust through addition of products to its portfolio as well as diversifying its export customer base, the company said.

Separately, the SFL board met on Wednesday to take stock of the results for the third quarter ended December 2019. The standalone net profit for the period dipped 7.59% to ₹103.06 crore on the back of a slowdown in the automobile industry.

Revenue from operations dropped to ₹692.80 crore from the ₹1,018.84 crore in the year-earlier period, while domestic sales were lower at ₹446.05 crore (₹608.48 crore) due to a drop in industry volumes.

Export sales for the quarter stood at ₹224.18 crore (₹370.67 crore), the company said in a statement.

Earnings before interest, depreciation and taxes (Ebitda) stood at ₹124.54 crore against ₹195.15 crore. Tax expenses for the quarter include a credit towards restatement of deferred tax liability pursuant to amendment to tax laws in terms of which the company has chosen to adopt the lower rate of corporate tax, the statement said.The board also approved the re-appointment of B. Muthuraman as non-executive independent director for a second term beginning April 16, 2020.

Mr. Muthuraman has expertise in general management, marketing, sales, project management and human resources. He was the former non-executive vice-chairman, Tata Steel Ltd. He was also the chairman, Tata International Ltd., Tata Africa Holdings Ltd. and was on the boards of Tata Industries Ltd. and Bosch Ltd.

Shares of SFL gained ₹2.35 to close at ₹517.70 on the BSE Wednesday.

This article is closed for comments.
Please Email the Editor

Printable version | Dec 3, 2020 5:03:42 PM | https://www.thehindu.com/business/Industry/sfl-ships-first-consignment-from-sri-city-unit-to-germany/article30686461.ece

Next Story