Prime Highlights
- Sundram Fasteners posted a 9% rise in standalone net profit to ₹150.97 crore, with revenue up 20% to ₹1,614.76 crore in the June quarter.
- The company has earmarked ₹400 crore in capex for capacity expansion across ICEVs, PHEVs and EVs, alongside separate investments in wind energy, aerospace and precision assemblies.
Key Facts
- Sundram Fasteners is an auto component manufacturer expanding into non-automotive sectors such as aerospace, wind energy, railways and defence.
- Export sales grew faster than domestic sales during the quarter, rising 23% against 16% growth in the domestic market.
Background
Sundram Fasteners Ltd has reported a 9% rise in standalone net profit to ₹150.97 crore for the June quarter of the current financial year, up from ₹138.35 crore in the same period last year. Revenue from operations climbed 20% year-on-year to ₹1,614.76 crore, compared with ₹1,350.17 crore a year earlier.
The auto component manufacturer’s domestic sales grew 16% to ₹1,084.31 crore, while export sales rose 23% to ₹465.97 crore during the quarter, the company said.
To support long-term growth, Sundaram Fasteners has earmarked capital expenditure of ₹400 crore for capacity expansion to meet rising demand across internal combustion engine vehicles, plug-in hybrid electric vehicles, and electric vehicles.
Managing Director Arathi Krishna said the company had entered the new financial year on a strong footing, supported by improving business conditions and steady customer confidence. She noted that export demand was recovering steadily. At the same time, domestic markets remained resilient, adding that continued investment in technology and manufacturing excellence had helped the firm respond quickly to shifting market needs. The company was also expanding into non-automotive sectors such as aerospace, wind energy, railways and defence, she said.
Within its Fasteners Division, the company has proposed an investment of around ₹250 crore to strengthen its position in wind energy, space and aerospace. It also plans to invest close to ₹100 crore in its cast and machined assemblies business to build precision-engineered manufacturing capabilities.
The company pointed to diverging global trends, with US automakers focusing more on hybrids while European manufacturers move faster towards electric vehicles. Sundram Fasteners said it was also advancing its digital transformation through Industry 4.0 technologies, including AI, ML, IoT and robotics.
