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Shares of Sundram Fasteners decline after Q1 profit decreases

Jul 28, 2023

By: BlinkX Research Team

In comparison to the same quarter last year, the company reported a 13% fall in standalone net profit to Rs 113 crore for the quarter that ended June 30.

The company said in an exchange filing on July 28 that EBITDA, or profits before interest, tax, depreciation, and amortization, was Rs 197 crore as compared to Rs 215 crore in the same time previous year.

Due to declining commodity prices and a favorable product mix, Sundram Fasteners was able to preserve EBITDA margins, according to the disclosure.

Additionally, operating revenue decreased to Rs 1,216 crore in the June 2023 quarter from Rs 1,240 crore in the same period last year. Compared to the first quarter of the previous fiscal, when domestic sales were Rs 798 crore, they increased to Rs 822 crore.

The company's exports during the reviewed quarter fell 14% to Rs 348 crore. The company blamed the setback on the US market's subdued demand.

In addition, the company's capital expenditures for the three months ended June 30 were in line with the Rs 300 crore in planned capital expenditures for the financial year 2023–2024.

Shares of Sundram Fasteners increased by about 5% following Q4 results last year, reaching an all-time high of Rs 1,090. The business reported an increase in net profit of 19%.

Source: Media Reports