Q3 2024 Sundram Fasteners Ltd Earnings Call Transcript
Key Points
- Sundaram Fasteners Ltd (BOM:500403) reported an EBITDA margin expansion from 15% to 17%, driven by favorable raw material prices and effective cost management.
- The company achieved a profit before tax of INR155 crores, up from INR142 crores in the previous year.
- The Chinese venture is performing well, particularly in the passenger vehicles and EV segments, contributing positively to the overall financials.
- The UK venture has also turned around, showing impressive performance despite high interest rates and a slowing truck market.
- Sundaram Fasteners Ltd (BOM:500403) has a strong debt-equity ratio of 0.11, indicating robust financial health.
- Revenues for the quarter were impacted by floods in Chennai, leading to a temporary disruption in operations.
- Exports decreased from INR364 crores to INR339 crores, partly due to the United Auto Workers strike and customer supply chain issues.
- The domestic market growth is expected to be modest, with an overall industry growth of only 3% to 4%, dragged down by the tractor segment.
- The company faced a loss of production worth INR40 crores to INR50 crores due to the floods, affecting the quarterly performance.
- There are ongoing challenges in the export market, including supply chain constraints and geopolitical issues like the Russia-Ukraine war and the Red Sea conflict.
Ladies and gentlemen, good day and welcome to Sundram Fasteners 3Q FY24 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call.
These statements are not the guarantees of future performance, and involve risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Mukesh Saraf. Thank you and over to you, sir.
Thank you, Viren. Good morning. Mukesh here from Avendus Spark. Appreciate everybody logging in. I'm pleased to be hosting the management of Sundram Fasteners on this call. We have with us Mr. Dilip Kumar, Chief Financial Officer of Sundram Fasteners; Mr. C. Rajagopalan, Executive Vice President, Marketing; and Mr. R. Ganesh, Senior General Manager, Finance.
We'll start with a brief opening remarks from Mr. Dilip Kumar,
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