Sundram Fasteners shares drop after Q1 profit narrows

The company has incurred capital expenditure for the quarter ended June 30 in line with its planned capital expenditure of Rs 300 crore for the financial year 2023-24.

Sundram Fasteners' shares were down 2.3 percent to Rs 1,190 apiece at about 9:20 am on July 28.

The company reported a 13-percent decline in standalone net profit to Rs 113 crore for the quarter ended June 30, as compared to Rs 130 crore recorded in the year-ago quarter.

The EBITDA or earnings before interest, tax, depreciation and amortisation stood at Rs 197 crore as against Rs 215 crore in the same period last fiscal, the company said in an exchange filing on July 28.

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The financials

According to the disclosure, Sundram Fasteners was able to maintain EBITDA margins on the back of easing commodity prices and a favourable product mix.

Revenue from operations also declined to Rs 1,216 crore in the June 2023 quarter, as against Rs 1,240 crore in the year-ago quarter. Domestic sales grew to Rs 822 crore when compared to Rs 798 crore in the first quarter of last fiscal.

The company's exports slid 14 percent to Rs 348 crore for the quarter under review. The company attributed the slowdown to muted demand in the US market.

Furthermore, the company has incurred capital expenditure for the quarter ended June 30 in line with its planned capital expenditure of Rs 300 crore for the financial year 2023-24.

After Q4 results last year, shares of Sundram Fasteners rallied nearly 5 percent to hit an all-time high of Rs 1,090, The company reported a 19 percent increase in net profit.

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