With continuing restrictions on manpower and slow resumption of operations by domestic customers, Sundaram Brake Linings (SBL), a TVS group auto-component maker on Wednesday said the company is currently focused mainly on catering to existing export orders. The company, in a Covid-19 impact update, said the severe country wide lockdown from the end of March 2020 will lead to an adverse impact on revenue and profitability in 2020-21. To cope with the crisis, the company has taken several steps to reduce fixed costs through right sizing the operation and improvements in machines and methods, it said. The company’s net sales decreased by nearly 10% during the year 2019-20, as compared to financial year 2018-19, with a decrease of 18.2% in the domestic market and a marginal increase of 1.2% in the export market. Net sales for the year 2019-20 were at Rs 253.62 crore as against Rs 281.29 crore in the previous year, SBL said in its Annual Report 2019-20.
The company has developed and obtained approval from domestic original equipment makers (OEMs) for drum brake lining for BS-6 heavy commercial vehicle applications with enhanced axle loads. It has acquired new process technology from Japan for development of products for heavy duty commercial vehicle. On the future plan of action, SBL said that development of disc pads and drum brake linings for various new vehicle applications for domestic OEMs, development of disc pads with reduced copper content for export applications to meet upcoming regulatory requirements, development of woven clutch facings for medium and heavy commercial vehicle OEM applications and development of friction lined shoes for new generation two wheelers are in the pipeline.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.