Industry

Sundram Fasteners Q3 net dips 16.8% to ₹103.34 crore

A. Natrajan, vice president, Sundaram Fasteners, Haian County, Zhejiang Province, China.
Photo: Nirupama Subramanian  21-06-2005

A. Natrajan, vice president, Sundaram Fasteners, Haian County, Zhejiang Province, China. Photo: Nirupama Subramanian 21-06-2005

Sundram Fasteners Ltd. (SFL) standalone net profit for the third quarter ended December fell 16.8% to ₹103.34 crore due to increase in commodity prices and logistics costs.

During the period under review, revenue from operations grew by 8.7% over the corresponding year-ago period to ₹1,024 crore. Costs of material consumed increased by 12%, while total expenditure by 14%, it said in a regulatory filing.

“The increase in commodity prices, as well as the costs of logistics and other inputs had a significant impact on the margins, which was mitigated through cost reduction measures and price support from the customers,” SFL said.

SFL has been able to contain the interest cost due to efficient working capital management and reduction in average borrowings. While domestic sales volume witnessed a marginal increase of 3.4% to ₹658 crore, export volume grew by 21.2% to ₹336 crore. The Company continues to post a robust growth in export sales, SFL said in a statement.

For the quarter, the finance cost comprised of interest cost of ₹3.13 crore and exchange loss of ₹10 lakh against ₹2.78 crore (interest cost of ₹4.94 crore and exchange gain of ₹2.16 crore) incurred during the corresponding year-ago period.

The board declared an interim dividend of ₹6.45 per share.


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Printable version | Jul 3, 2022 6:04:05 pm | https://www.thehindu.com/business/Industry/sundram-fasteners-q3-net-dips-168-to-10334-crore/article38406808.ece