Sundram Fasteners , a leading auto components manufacturer, has reported impressive financial results for the first quarter, showcasing robust growth in revenue and profitability.

Strong Revenue Growth

The company reported a revenue of INR 1,367.00 crores for Q1, marking a significant increase from INR 1,021.00 crores in the corresponding quarter of the previous year. This 34% year-on-year growth was primarily driven by strong domestic performance across various segments.

Record Profitability

Sundram Fasteners achieved a record quarterly profit before tax (PBT) of INR 186.00 crores and a profit after tax (PAT) of INR 138.00 crores. The company's EBITDA margin improved to 17.50% from 17.00% in the same quarter last year, reflecting enhanced operational efficiency.

Domestic Market Outperformance

The company's domestic business outperformed industry growth, with strong performance across commercial vehicles, passenger vehicles, and tractors. Sundram Fasteners benefited from:

1. Higher participation in SUVs, which now account for 66% of the passenger car segment
2. Increased presence in higher tonnage commercial vehicles and multi-axle vehicles
3. Strong position in high horsepower tractors

Export Market Challenges

While the domestic market showed robust growth, the export market remains uncertain. North America is facing a demand slump due to emission norm confusion and tariff issues. However, Europe is showing better performance, with the company benefiting from favorable foreign exchange movements in Euro and GBP.

Operational Improvements

The company's performance was further boosted by:

1. Benign raw material prices
2. Increased renewable energy mix, reaching 52%
3. Lower international freight costs
4. Favorable product mix leading to lower consumption of indirect materials and subcontracting operations

Wind Energy Segment Growth

The wind energy segment has become a significant contributor to Sundram Fasteners' revenue, now generating over INR 350.00 crores annually, up from INR 200.00 crores previously.

Future Outlook

Management expects 8-9% growth for the full year if export conditions improve. The company has planned a capital expenditure of INR 300.00 crores for the current fiscal year.

R. Dilip Kumar, Chief Financial Officer of Sundram Fasteners, commented on the results, stating, "We have started off well in the domestic segment, with growth slightly higher than the industry across all segments. We are reasonably positive for Q2 and are working towards improving our export market performance in the coming quarters."

As Sundram Fasteners continues to navigate the evolving automotive landscape, its strong domestic performance and strategic focus on high-growth segments position it well for sustained growth in the coming quarters.

Sundram Fasteners Limited , a leading manufacturer of automotive components, has announced its quarterly financial results, showcasing record-breaking performance across key metrics.

Consolidated Financial Highlights

• Revenue from Operations: The company achieved its highest-ever consolidated revenue from operations at Rs. 1,533.39 crores.
• Profit Before Tax (PBT): Sundram Fasteners reported a record consolidated PBT of Rs. 199.13 crores.
• Net Profit: The consolidated net profit reached an all-time high of Rs. 147.94 crores.

Standalone Performance

On a standalone basis, the company's performance was equally impressive:

• Revenue: Standalone revenue from operations stood at Rs. 1,350.17 crores, up from Rs. 1,310.33 crores in the previous year.
• Domestic Sales: The company witnessed robust growth in domestic sales, which increased by 8.78% to Rs. 930.91 crores.
• Export Sales: Export sales, however, saw a decline to Rs. 379.14 crores from Rs. 422.65 crores in the previous year.
• EBITDA: The company achieved an EBITDA of Rs. 238.77 crores, with an EBITDA margin of 17.5%.
• Gross Margin: Gross margin improved from 57.5% to 59.9%, supported by improved domestic demand, stable commodity prices, and a favorable product mix.

Key Financial Metrics

Additional Performance Indicators

• Earnings Per Share (EPS): The company reported an EPS of Rs. 6.58 for standalone results and Rs. 7.06 for consolidated results.
• Capital Expenditure: Sundram Fasteners incurred a capital expenditure of Rs. 71.48 crores for the quarter, aligning with its planned growth strategy.

Management Commentary

Ms. Arathi Krishna, Managing Director of Sundram Fasteners Limited, commented on the company's performance: "Our performance underscores the fundamental strength and resilience of our operations, as well as our unwavering commitment to delivering value to our customers. We have grown primarily due to robust domestic demand across our key segments. This progress is a testament to the dedication and expertise of our teams, who continue to drive operational excellence and uphold the highest standards of product quality."

She further added, "Our export markets continue to pose challenges amidst global economic headwinds and ongoing geopolitical uncertainties. Despite these conditions, we remain confident in the competitive strength of our product portfolio and the durability of our long-term partnerships."

Future Outlook

The company is focusing on strengthening its foundation by prioritizing investments in innovation, capacity expansion, and customer engagement. This strategy aims to position Sundram Fasteners for sustained growth in both Indian and international markets.

The company's record-breaking performance demonstrates its strong market position and operational efficiency, despite challenges in the export market. With a focus on innovation and expansion, Sundram Fasteners appears well-positioned for continued growth in the automotive components sector.