Sundaram Clayton Limited (SCL), a leading manufacturer of engineered aluminium die-cast components for the automotive sector, has announced its quarterly results. Despite a decline in revenue, the company reported significant improvements in EBITDA and its US operations.

Financial Performance

SCL reported standalone revenue of Rs. 442.12 crores, down from Rs. 549.04 crores in the same quarter last year. The revenue decrease is primarily attributed to the transfer of the Hosur business unit. However, the company's EBITDA showed a notable improvement, increasing by 16% to Rs. 70.60 crores compared to Rs. 61.10 crores in the corresponding quarter.

The net profit for the quarter stood at Rs. 17.01 crores, with earnings per share of Rs. 7.72.

India Operations

SCL has successfully ramped up operations at its new Thervoy Kandigai Plant (TKP) in Chennai without any disruptions. This state-of-the-art facility is expected to enhance the company's production capabilities and efficiency.

In a strategic move to improve operational efficiency, the company is in the process of consolidating its three Indian plants into two facilities.

USA Operations

The company's North American operations have shown remarkable growth. SCL's US operations achieved their highest quarterly sales of Rs. 79.70 crores, marking a significant 32% increase over the previous year. This performance underscores the company's growing presence and success in the North American market.

Investments

During the quarter, Sundaram-Clayton invested Rs. 77.31 crores in its overseas subsidiary, Sundaram Holding USA Inc. This investment demonstrates the company's commitment to expanding its international operations and capitalizing on growth opportunities in the US market.

Outlook

Despite the challenges posed by the revenue decline, SCL's improved EBITDA performance and strong growth in US operations indicate a positive trajectory for the company. The successful ramp-up of the new Thervoy Kandigai Plant and the ongoing consolidation of Indian facilities are expected to further enhance operational efficiency in the coming quarters.

Sundaram-Clayton Limited continues to focus on providing high-quality, innovative solutions to global customers in the automotive sector. With its emphasis on operational efficiency, international expansion, and strategic investments, SCL aims to navigate current market conditions while positioning itself for long-term growth in both domestic and international markets.

Sundaram-Clayton Limited (SCL), a leading manufacturer of aluminium die-cast components for the automotive industry, has reported significant improvements in its financial performance for the fourth quarter and full fiscal year 2024-25, alongside major operational developments.

Q4 Financial Highlights

For the quarter ended March 31, 2025, Sundaram-Clayton reported:

• Revenue from operations of ₹524.54 crore, compared to ₹532.32 crore in the same quarter last year.
• A substantial increase in EBITDA to ₹313.00 crore from ₹153.00 crore year-over-year.
• EBITDA margin rose to 16.65%, up from 11.47% in Q4 of the previous year, marking a 5.18 percentage point improvement.
• A consolidated net profit of ₹143.55 crore, swinging from a loss of ₹47.34 crore in the same quarter last year.

Full Year Performance FY 2024-25

For the fiscal year ended March 31, 2025, the company achieved:

• Annual revenue of ₹2,109.14 crore, slightly higher than the ₹2,096.97 crore recorded in FY 2023-24.
• Operating EBITDA margin improved to 13.44% from 12.78% in the previous year.
• Profit before tax of ₹306.08 crore, including a net exceptional gain of ₹196.69 crore.
• Profit after tax of ₹257.92 crore.

Operational Milestones

Sundaram-Clayton made significant strides in its operational capabilities during FY 2024-25:

Smart Mega Casting Facility

On January 31, 2025, SCL announced the commencement of full-scale operations at its new state-of-the-art mega die-casting facility at Thervoy Kandigai Plant (TKP), Chennai. This facility is part of the company's strategy to consolidate manufacturing operations from four facilities into two major hubs for improved scale and efficiency.

Advanced Manufacturing

The TKP facility integrates High Pressure, Low Pressure, and Gravity Die Casting cells, along with a comprehensive finished machining facility. It's designed to accommodate future mega-presses ranging from 6000T to 9000T, positioning SCL to meet evolving global OEM needs.

Smart Factory Implementation

The new facility features advanced robotic manufacturing cells, automated storage and retrieval systems (ASRS), and autonomous mobile robots (AMRs) for real-time, man-less material handling.

Consolidation Strategy

SCL is transferring operations from its Mahindra World City (MWC), Chennai plant to the TKP, with remaining machinery to be relocated to Oragadam shortly.

Divestment

On March 26, 2025, SCL executed a Business Transfer Agreement to sell its ascast, low-pressure, and low tonnage aluminium die-casting businesses at its Hosur plant to Sandhar Ascast Private Limited.

International Expansion

SCL has commenced supplies from its recently commissioned 4400-tonne die-casting machine in the U.S., enhancing its ability to serve the North American market with additional product lines and capabilities.

R Gopalan, Chairman of Sundaram-Clayton Limited, commented on the results, stating, "Our focus on operational efficiency and strategic investments in advanced manufacturing capabilities has begun to yield positive results. The launch of our Smart Mega Casting Facility and the consolidation of our operations are pivotal steps in our transformation journey, positioning us strongly for future growth and innovation in the global automotive components market."

As Sundaram-Clayton continues to expand its global footprint and enhance its technological capabilities, the company remains well-positioned to capitalize on the growing demand for high-precision aluminium die-cast components in the automotive sector.