SUNDRAM FASTENERS LTD
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BSE Code:
500403
NSE Code:
SUNDRMFAST
Business Profile
Business Profile
Sundram Fasteners (SFL) is a part of the USD 3 billion TVS Group, headquartered in Chennai, India. It was established in the year 1966 to manufacture high tensile fasteners and is currently among the leading manufacturers of automotive components. A multi product company, it manufactures powder metal parts, precision formed gears, iron powders, radiator caps, gear shifters & tyre carriers, apart from high tensile fasteners and automotive components. Over the years, the Company has acquired cutting-edge technological competencies in forging, metal forming, close-tolerance machining, heat treatment, surface finishing and assembly. SFL is the first Indian company to be ISO 9000 certified.
The company has manufacturing facilities both in India and abroad. It is the largest manufacturer and exporter of high-tensile fasteners and commands a market share of over 70%. SFL produces the wide range of fasteners in the country and has the largest library of tools in the sector. Fasteners contribute about 63.5% to the company?s turnover, while cold extruded and powder metal parts contribute 18%. SFL is the sole supplier of radiator caps and has now started supply of powder metal parts to GM, USA. The company also supplies fasteners to Daimler Benz AG, Germany (through Kamax) and Cummins Engine Company Inc., USA. In the OEM sector, its clientele includes auto majors such as Telco, Maruti Udyog, Bajaj Auto and Mahindra & Mahindra.
Financials
Sundram Fasteners registered a 19.57% decline in net profits to Rs 204.6 million for the quarter ended in September 2007 from a profit of Rs 254.4 million for the quarter ended in September 2006.
Net Sales dipped 4.69% to Rs 2982.00 million for the quarter ended September 2007 from Rs 3129.00 million for the quarter ended September 2006.
Total income has fallen by 4.75% to Rs 2984.90 million for the quarter ended September 2007, from Rs 3133.80 million for the quarter ended September 2006.
The diluted earnings per share (EPS) of the company stood at Rs 0.97 in the quarter ended September 2007.
Recent Developments
27-FEB-08
Sundram Fasteners announced that the company acquired 100% capital of Sundram Fasteners (Zhejiang), China (SFZL), a step-down wholly-owned subsidiary at cost from Sundram Fasteners Investments, a wholly owned subsidiary of the company.
12-DEC-07
Sundram Fasteners announced that the company acquired 100% equity share capital of Upasana Engineering, a step-down wholly owned subsidiary from Sundram Fasteners Investments, a wholly owned subsidiary of the company.
03-DEC-07
Chennai-based auto component maker Sundram Fasteners established a manufacturing facility with an initial investment of around Rs 300 million in Pantnagar, Uttarakhand.
29-OCT-07
Sundram Fasteners has decided to pay an interim dividend of Rs 0.45 per share (45%) for the financial year ending March 31, 2008.
Future Plans
Its domain expertise in fasteners, limited size and growth prospects of the fastener market means that acquisitions will play a key role in growth plans. In the future, the company will shift to value-added specials and target original equipment manufacturers (OEMs). With an added emphasis on exports, there will be greater scope for the company to increase capacity utilisation.