Sundram Fasteners Ltd. (SFL) lowered net debt by 35% to ₹443 crore during fiscal 2021, a year in which the auto sector was badly hit by the COVID-19 pandemic.
The auto components maker, which is part of the TVS group, had a net debt of ₹681 crore a year earlier. In fiscal 2021, it incurred capital expenditure of ₹140 crore on existing and new projects in tandem with the production plans of key customers, SFL said in its latest annual report.
‘Sector set for growth’
SFL said that after two years of sluggishness, India’s automobile sector is set to post double-digit growth next fiscal on improving economic activity and personal incomes.
Consumption data such as sales in the fast-moving consumer goods and automotives, and Goods and Services Tax (GST) collections indicated recovery in demand. The government allocating ₹5 trillion for capital expenditure in the latest Budget is expected to pave the way for faster growth in the automotive segment, it added.
Government policies to promote self-reliance in the defence and the aerospace sectors have centred on the implementation of advanced technologies. It improves the potential for domestic manufacturing and provides more opportunities for SFL, the company pointed out.
