Despite facing a highly challenging operating environment caused by the second wave of the pandemic, the Chennai-based Sundram Fasteners has delivered a solid operational performance with a net profit of INR 112.55 crore in Q1 FY22 against a net loss of INR 23.48 crore during the same period in the previous year.
The revenue from operations was at INR 938.81 crore during the period under review against INR 276.73 crore. While the domestic sales were at INR 559.93 crore (INR 132.85 crore), export sales were at INR 356.33 crore (INR 135.02 crore) in the review period.
The EBITDA was at INR 192.88 crore (INR 12.99 crore), amounting to 20.5% of the revenue from operations. According to the company, it was possible due to stringent cost control measures and strong operating performance.
The company said its finance cost for the quarter under review, after accounting for exchange differences, was lower at INR 4.17 crore (INR 7.91 crore) due to a sharp reduction in borrowings, attributable to the efficient working capital management and improved operating performance.
Consolidated revenue from operations was at INR 1,112.43 crore against INR 373.17 crore during the same period previous year.
Arathi Krishna, Managing Director, Sundram Fasteners, said that despite the challenges posed by the second wave of the pandemic during Q1 FY22, the company managed to deliver a strong operating performance by judiciously planning its manufacturing and at the same time ensuring the health and safety of its people.
“The gradual opening up of the economy from the second quarter of FY 2021 helped create an upward trend in demand as OEMs ramped up their production levels; however, the second wave of COVID-19 did cause pressure on the Indian automotive sector. This proved to be a challenge for several OEMs across the country, forcing them to cut production or suspend operations temporarily. Despite this, the cost and efficiency improvement measures enabled the company to sustain its operating and net margins,” Krishna added.
NB: Photo is representational.