Q2FY23 Result: Net profit of Sundram Fasteners dips by 6%
The leading auto component supplier reported 13% growth in topline but the bottomline was hit by inflation.
Sundram Fasteners Ltd, a dominant player in the domestic fastener market posted its financial results for the quarter that ended on September 30, 2022.
In Q2FY23, revenue grew by 12.83% YoY to Rs 1401.65 crore from Rs 1242.26 crore in Q2FY22. On a sequential basis, the top line was down by 0.6%.
PBIDT (Ex OI) was reported at Rs 204.69 crore, down by 6.29% as compared to the year-ago period and the corresponding margin was reported at 14.6%, contracting by 298 basis points YoY. Margins were impacted by the inflationary pressure on input costs.
PAT was reported at Rs 116.78 crore, down by 5.75% from Rs 123.91 crore in the same quarter for the previous fiscal year. The PAT margin stood at 8.33% in Q2FY23 contracting from 9.97% in Q2FY22.
The Board has declared an interim dividend of Rs 3.57 per share (357%) for FY23. It also declared an additional special dividend of Rs 2 per share (200%) to commemorate the 60th year of incorporation of the company.
The board also approved the scheme of amalgamation of Sunfast TVS Ltd and TVS Engineering Ltd with Sundram Fasteners Ltd 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 firm said in a statement.
Shares of Sundram Fasteners enjoy a market capitalisation of Rs 208,615 crore and are currently trading at a trailing P/S of 49.60 with a 52-week high and low of Rs 1009.80 and Rs 674.80. At the time of writing, shares of Sundram Fasteners were quoting at Rs 989.80 with a loss of 1.4% or 14.05 a piece.
Sundram Fasteners Ltd (SFL), is a part of the $13 billion TVS Group of Companies. SFL is a dominant player in the domestic fastener market, finding applications in the automotive, infrastructure, windmill, and aviation sectors.
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