with a market capitalization of 20,036.79 crores, Sundaram Fasteners Limited is a large-cap company that deals with the consumer discretionary industry. The company is a global leader in manufacturing components such as fasteners, power trains, sintered metal products, iron powder, cold extruded parts, radiator caps, water pumps, oil pumps and wind energy components for the automotive, infrastructure, windmill and aviation sectors. The company has spread its business in India, China, Germany, USA, UK, Italy, France and Brazil. The company has declared its Q2 results along with dividend for the financial year ending March 31, 2023.
The company has said in a stock exchange filing that “in furtherance of our letter dated 3rd November, 2022 under Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), we would like to inform you that the Board of Directors Ltd. in its meeting held today (Tuesday, 8th November, 2022) has approved the payment of interim dividend @ Rs.1/- per share for the financial year ending 31st March, 2023 at Rs.3.57 per share and a special Dividend @ Rs.2.00 per share.1/- each to commemorate the 60th year of the company’s incorporation.The company has fixed November 18, 2022 (Friday) as the record date and informed the stock exchanges about the purpose “For the purpose of determining the shareholders eligible to receive interim dividend and special dividend for the financial year ended 31st March, 2023. The interim dividend will be paid to the shareholders on November 30, 2022 (Wednesday).”
On a standalone basis, revenue from operations grew by 14.6% Rs 1,218.19 crore for the quarter ended September 30, 2022 from 1,063.07 crore for the same quarter last year. Home sales increased dramatically by 21% during the quarter ended September 30, 2022 to Rs. 802.45 crore as opposed to Rs. 663.26 crore a year ago. In Q2FY23, export sales grew by 4.1% 377.78 crore from 362.81 crore in Q2FY22. The company posted earnings before interest, depreciation and taxes (EBITDA) for Q2FY23 at Rs. 193.22 crore as against Rs. 200.95 crore during the corresponding period of last year. For the quarter ended September 30, 2022, Profit Before Tax (PBT) is Rs. 149.46 crore as opposed to Rs. 160.86 crore for the year-ago quarter. Net Profit for Q2FY23 was at 111.75 crore as against a net profit of Rs. 120.16 crore in Q2FY22. Earnings Per Share (EPS) for Q2FY23 is Rs. 5.32 and Rs. 5.72 in Q2FY22.
The company’s consolidated revenue from operations reached 1,401.65 crore in Q2FY23 as compared to 1,242.26 crore during Q2FY22, representing a year-on-year growth of 12.8%. For the quarter ended September 30, 2022, the consolidated net profit was 116.78 crore as against 123.91 crore in Q2FY22. The consolidated earnings per share (EPS) for the quarter ended September 30, 2022 declined to Rs. 5.83 in the quarter ended September 2021 from Rs 5.49.
The company in its financial report stated that its board of directors has “approved the plan of amalgamation of Sunfast TVS Ltd. and TVS Engineering Ltd. with Sundaram Fasteners Ltd. and their respective shareholders. The amalgamation facilitates operational synergy, efficient allocation of capital”. and will provide a platform for the integration of the company’s defense and aerospace business.”
Sundaram Fasteners shares closed today 956.00 each, down 4.77% from previous close 1,003.85. The stock recorded a total volume of 246,401 shares compared to the 20-day average volume of 132,778 shares. The stock has gained 96.99% during the last five years, and has given a multibagger return of 102.86% over the last three years. The stock is up 12.27% over the past year, and has climbed 6.55% year-over-year (YTD) in 2022. For the quarter ended September or Q2FY23, the company reported promoter shareholding of 48.51%, FII’s shareholding of 11.75%, DII’s 18.72% and Public stake 21.03%.
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