Sundram Fasteners Ltd. has registered its best-ever performance in terms of revenue and profits during FY19. The company’s operating revenue has crossed the milestone of Rs. 4,000 crores mark for the first time at Rs. 4,002.34 crores as compared to Rs. 3,419.79 crores the previous year. Domestic sales, net of excise duties were at Rs. 2,469.15 crores as against Rs. 2,146.76 crores in FY18, an increase of 15%, on the back of increase in production of commercial vehicles. In the aftermarket, the company expanded its dealer network in an attempt to increase the sales penetration in industrial segments which led to an increase in aftermarket sales.
The export sales were at Rs. 1,382.99 crores as against Rs. 1,168.14 crores last year, an increase of 18.4% due to volume growth accompanied by a favourable exchange rate movement.
The company incurred Rs. 442 crores towards capital expenditure on existing and new projects in order to augment capacities for meeting the increase in volume of business and in tandem with production plans of key customers.
While its SEZ Units I & II at Mahindra World City in Chennai are fully operational, the company has set up another SEZ Unit at Mahindra World City (Unit III) which has commenced commercial production in January 2019. The unit manufactures and exports high-end parts forged and machined with close tolerances for cross-overs and mini trucks.
The company is in the process of setting up a new SEZ unit at Sri City, Andhra Pradesh, to manufacture high precision engineering components. It will be used as a hub to consolidate its foray into non-auto segment including off-road vehicles for export business.