Sundram Fasteners Q3 results: Net profit jumps 21% to Rs 124 cr

Auto component maker Sundram Fasteners Ltd has clocked standalone net profits for the quarter ending December 31, 2020 at Rs 124.24 crore up by 20.6 per cent.

The city-based TVS Group company had recorded standalone net profits at Rs 103.06 crore during corresponding quarter previous year.

For the nine-month period ending December 31, 2020 standalone net profits slipped to Rs 198.12 crore from Rs 267.24 crore registered a year ago.

The total income on a standalone basis for the quarter under review grew to Rs 945.41 crore from Rs 701.22 crore registered in the same quarter last fiscal.

For the nine-month period ending December 31, 2020 standalone total income was at Rs 2,003.14 crore as against Rs 2,421.84 crore, the company said in a BSE Filing.

The company said the domestic sales for the quarter under review were at Rs 637.01 crore as against Rs 446.05 crore during previous year on the back of increase in demand.

Export sales for the quarter under review grew to Rs 277.20 crore as against Rs 224.18 crore registered in the same period last fiscal.

The company said its EBITDA for the quarter ending December 31, 2020 was at Rs 205.85 crore as against Rs 124.54 crore registered in the same period last fiscal, on the "back of cost control measures and improvement in operational efficiency."

With rising commodity prices, the company continues to exercise stringent measures to contain its operating costs to ensure its operating margins are sustained, Sundram Fasteners said.

The quarter (ending December 31, 2020) also had a one-time reversal of deferred tax provision amounting to Rs 41.98 crore.

The company in May had announced pay cuts to employees and with improving business conditions, the management restored the salary during the third quarter to pre-COVID-19 levels.

The company equipped with a diversified product line, has facilities in three countries and is engaged primarily in manufacture and sale of bolts and nuts, water and oil pumps, cold extruded components, hot and warm forged parts, radiator caps among many others.