Sundram Fasteners posts 7% rise in Q3 net profit as global orders rise

Auto components firm says it is 'progressing well' despite macroeconomic challenges

Sundram Fasteners, a supplier to original equipment manufacturers (OEMs) and automakers, on Thursday reported a 7.3 per cent rise in net profit for the third quarter of the Financial Year at Rs 118.07 crore, compared to Rs 110 crore in the same period the previous year.

The company’s consolidated revenue from operations for the quarter ended December 31 was at Rs 1,403.03 crore, a 16.2 per cent rise compared to Rs 1,207.53 crore in the same period the previous year. Consolidated earnings per share (EPS) for the quarter amounted to Rs 5.57: it was Rs. 5.15 in the same period last year.

“We have progressed well despite the ongoing macroeconomic challenges. We thank our employees, suppliers and customers for the continued trust and will strive to deliver continued performance,” said Arathi Krishna, managing director of Sundram Fasteners.

Sundram’s consolidated revenue from operations posted for the nine-month period ended December 31 2022 was at Rs 4,214.80 crore, compared to Rs 3,562.22 crore in the same period the previous year and recording a 18.3 per cent growth helped by increased demand from global customers. Consolidated net profit for the nine-month period ended December 31, 2022 was Rs 372.88 crore, compared to Rs 354.40 crore in the same period the previous year.

About the Union Budget presented on Wednesday, Krishna said “The government has ensured that India advances and becomes a modern economy. The domestic automotive industry has significant growth potential, driven by a variety of factors, and in order to maintain momentum, the government has consistently prioritised technology connectivity, world-class infrastructure development, and an EV landscape. Furthermore, there is growing environmental concern, which is urging the government to promote green mobility. The government's explicitly realistic announcements will benefit industries such as manufacturing and sustainability.”