Sundram Fasteners Limited, part of the TVS Group, has announced net profits for its first quarter, ending 30th June, down 13% on same period last year at INR 93.1 crores (1 crore = 10 million).
Net profits for the quarter showed a similar decline against the last quarter of fiscal year 2018-19. Revenue from Sundram Fasteners’ operations was also 2.4% lower at INR 945 crores compared with INR 968.5 crores same quarter previous year. Revenue was down just under 6% quarter on quarter. Export revenue for the quarter was INR 348 crores, up 8% on the corresponding period previous year. Domestic sales were INR 557 crores, down sharply from INR 614 crores in Quarter 1 2018-19.
Speaking at the company’s AGM, Suresh Krishna, SFL chairman, said the automotive sector had slowed, as manufacturers reduced production to balance inventory in the face of subdued consumer demand, impacting the business. He described the slowdown as cyclical, noting the company had ten years successful business from the sector since the last downturn. Sundram has introduced a range of cost reduction measures to protect margins. Suresh Kriskna also emphasised that SFL was not purely a fastener company but a broad-based engineering business capable of meeting the needs of a range of sectors both domestically and abroad. SFL intends investing INR 350 crores during this fiscal year, with the emphasis on export-related projects.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.