The cost of materials consumed increased by 12%, while total expenditure increased by 14%, it said in a regulatory filing
Sundaram Fasteners Ltd (SFL)’s standalone net profit for the third quarter ended December fell 16.8% to ₹103.34 crore on account of rise in commodity prices and logistics cost.
During the period under review, revenue from operations grew by 8.7% to ₹1,024 crore as compared to the corresponding period of the same year. The cost of materials consumed increased by 12%, while total expenditure increased by 14%, it said in a regulatory filing.
“The rise in commodity prices, as well as the cost of logistics and other inputs, had a significant impact on margins, which were mitigated through cost reduction measures and price support from customers,” SFL said.
Due to efficient working capital management and reduction in average borrowings, SFL has been able to control the interest cost. While the domestic sales volume saw a marginal increase of 3.4% to ₹658 crore, the export volume grew by 21.2% to ₹336 crore. SFL said in a statement that the company is registering strong growth in export sales.
For the quarter, the finance cost included interest cost of ₹3.13 crore and exchange loss of ₹10 lakh against ₹2.78 crore (interest cost of ₹4.94 crore and exchange profit of ₹2.16 crore) during the same year period. Had happened.
The Board declared an interim dividend of ₹6.45 per share.
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