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Sundram Fasteners H1 net dips 18 pc

CHENNAI: Sundram Fasteners Ltd has reported a net profit of Rs 15.78 crore for the first six months of the current year, as against Rs 19.18 crore in the same period last year - a decline of 17.72 per cent.

The company attributes this to adverse market conditions.

Net sales for the period amounted to Rs 185.74 crore, marginally lower than Rs 186.19 crore in the first half of last year. Exports too declined marginally to Rs 39.35 crore (including excise), from Rs 39.86 crore previously, despite the rupee having dep reciated over the year. Other income slid to Rs 1.26 crore (Rs 1.75 crore).

All other costs were marginally higher than in the first half of last year. Reckoned as a percentage of net sales, raw material costs increased to 36.48 per cent from 35.50 per cent, employee costs to 11.38 per cent from 10.61 per cent, stores and tools to 10.85 per cent from 10.37 per cent and `other expenditure to 23.60 per cent from 22.39 per cent.

These cost escalations, when applied on a turnover of Rs 185 crore, works out to a good Rs 6-7 crore in value terms - which is the main reason for the fall in the profit. But added to this are the effects of the decline in the `other income component as well as an extraordinary expenditure of Rs 1.55 crore, the payments under an early retirement scheme.

Standing against these cost drivers, are the savings in terms of interest charges. Interest costs slid to Rs 7.16 crore from Rs 8 crore previously.

A senior offical of the company attributed this to the general trend of declining interest rates.

Also, there was an increase in `stock-in-trade of Rs 87 lakh, as compared to a decrease of Rs 2.37 crore in the first-half of 2000.

In the quarter ended September 30, 2001, Sundram Fasteners achieved a net turnover of Rs 90.71 crore, two per cent higher than Rs 88.92 crore in the same quarter last year. Net profit for the quarter was Rs 7.37 crore, as against Rs 9.61 crore in the sec ond quarter of 2000.

Asked about the outlook for the next six months, the companys President-Finance, Mr V.G. Jagannathan said: ``We will probably maintain the same level as last year. In the full year 2000-01, the company achieved a turnover of Rs 372.47 crore and a net pro fit of Rs 28.78 crore. -- Our Bureau