Sundram Fasteners Limited (SFL), part of the $6.5 bn TVS group, announced that the company has achieved its best ever sales performance during the year ended 31st March, 2017. Accordingly, the total revenue (net of excise duty) for the year stood at Rs 2,948.85 crore as against Rs 2,635.56 crore. PBIDT for the whole year is at Rs 560.43 crore as against Rs 418.91 crore an increase of 33.8% PBT at Rs 424.60 crore against Rs 221.09 crore an increase of 92.0% PAT at Rs 315.48 crore against Rs 213.99 crore an increase of 47.4%
The export sales were at Rs 1,044.11 crore as against Rs 908.12 crore an increase of 15%. Domestic sales, net of excise duties were at Rs 1,837.89 crore as against Rs 1,647.13 crore, in the light of increase in production of passenger vehicles, utility vehicles and two-wheelers. There has also been an improvement in the off take in aftermarket. The Company’s hot forging, power train components and wind energy fasteners product lines contributed significantly to the growth in sales during the year.
Q4-FY 2016-17 Performance
The Company recorded an increase in fourth quarter with Total Revenue of Rs. 782.95 crores (Rs.714.72 crores) an increase of 9.5%. The Net Profit for the quarter was at Rs. 87.66 crores (Rs. 87.20 crores). The profit performance in fourth quarter is not comparable with previous year since the net profit for the fourth quarter of 2015-16 has considered a write-back of tax provision to the extent of Rs. 37.17 crores due to application of Minimum Alternate Tax.
Milestone achievements
The year under review, witnessed achievement of significant milestones with Net Profit crossing Rs. 300 crore mark, which is the highest since inception of the Company. In addition, earnings per share surged to a new high of Rs 15.01 and Export sales crossed beyond Rs 1,000 crores.
FY 2016-17– Annual Performance
The Earnings before interest and depreciation was at Rs.560.43 crores (Rs.418.91 crores), an increase of 33.8%. The prudent working capital management and competitive sourcing of funds have enabled the Company to contain its interest costs. The Company has a strong balance sheet with an all-time low debt-equity ratio of 0.47.
The Net profit of the Company was at Rs.315.48 crores as against Rs.213.99 crores in the previous year, registering an increase of 47.7%.
Consolidated financials:
The company’s consolidated revenues for the year was at Rs. 3,305.69 crores (Rs. 3,316.58 crores). The consolidated net profit for the year surged to Rs. 338.18 crores as against Rs. 125.09 crores, an increase of 170.3%.
Dividend
The Company has paid an interim dividend of Rs 1.70 per share. The Board has recommended a final dividend of Rs. 2.80 per share (On a paid-up value of Re.1 per share). Thus, the total dividend paid/proposed during the year aggregates to Rs. 4.50 per share amounting to Rs. 94.48 crores. The Board has recommended an enhanced dividend to commemorate the Company’s 50th anniversary.
