Net profit crosses Rs.200-crore mark
Sundram Fasteners Ltd. (standalone) recorded total revenue of Rs. 2,641.38 crores for the year ended March 31, 2016, as against Rs. 2,409.75 crores in the previous year. Export sales were at Rs. 908.12 crores as against Rs. 898.71 crores, while domestic sales, net of excise duties were at Rs. 1,649.37 crores as against Rs. 1,426.33 crores, representing an increase of 15.6 per cent.
There has been a sharp increase in aftermarket sales due to certain specific initiatives taken by the company which reported strong demand for its hot forged parts, power train components and wind energy fasteners. Through continuous customer engagement and leveraging its manufacturing capability the company was in a position to fully utilise such opportunities. The above product lines contributed significantly to the growth in sales during the period under review.
Sundram Fasteners is well poised to take advantage of the business opportunities arising out of steady investments in capacity creation over the years. It expects an upsurge in the automotive sector in the long run, which augurs well for the performance of the company.
Milestone achievements
The year under review witnessed achievement of significant milestones with the net profit crossing the Rs. 200-crore mark, which is the highest since inception of the company. In addition, earnings per share surged to a new high of Rs. 10.05 and net worth crossed the Rs. 1,000-crore level.
Restructuring of global operations
Sundram Fasteners has restructured its international operations. It has created a new subsidiary called Sundram International Ltd., based in the UK. The Chinese subsidiary, Sundram Fasteners (Zhejiang) Ltd., and the UK subsidiary, Cramlington Precision Forge Ltd., have become subsidiaries of Sundram International. As a part of restructuring, the company divested the German subsidiaries, Peiner Umformtechnik and its affiliates.
The company is confident that the restructuring will strengthen its balance-sheet and improve its shareholder value.