Sundram Fasteners, a TVS Group company which manufactures high tensile fasteners, cold formed/extruded parts for auto and non-auto applications and automotive powder metal parts has reported its best ever quarterly net profit of Rs 130 crore in Q1 FY2023, compared to Rs 112 crore for the same period last year.
During the quarter, the company reported revenue of Rs 1,239 crore as against Rs 938 crore during the same period in the previous year, a growth of 32 per cent.
Arathi Krishna, MD, Sundram Fasteners said, “The company has registered a strong operating performance and reported highest ever profit despite a challenging environment posed by continuous increase in raw material prices, inflationary impact in indirect materials and steep increase in freight costs and other inputs. We continue to be cautiously optimistic about the ensuing quarters.”
Going forward, the company has planned an investment of Rs 350 crore over a period of five years for manufacturing advanced automotive technology components like powertrain sub-assemblies for electric vehicles and select Internal Combustion Engine (ICE) vehicles. The investments proposed to be made in this direction are expected to provide a major thrust to the company’s exports in the years to come.
In addition, there is a significant potential for growth in the wind energy business. To meet the surge in demand, the Company proposes to make additional investments of Rs 300 Crores over the next two years.
Sundram Fasteners says it will continue its efforts in developing new products such as tower fasteners, valve body housing and swash plate for hydraulic power system, electric water pumps for passenger utility vehicle, sintered pulleys for electric scooter application, which is expected to pave way for better business prospects in the future.