Q3 2025 Sundram Fasteners Ltd Earnings Call Transcript
Key Points
- Sundaram Fasteners Ltd (BOM:500403) experienced a strong performance in the export segment, with a 15% growth in exports, driven by volume increases and favorable currency movements.
- The company has maintained stable raw material costs, with a 2% to 3% drop in procurement rates, which positively impacts cost management.
- Sundaram Fasteners Ltd (BOM:500403) has a strong market position in the Indian fastener market, commanding a market share of 40% to 45%, and is recognized for its extensive tool library and product range.
- The company is optimistic about future growth, with investments in new capacities for wind energy and electric vehicle (EV) components expected to drive revenue in the coming quarters.
- Sundaram Fasteners Ltd (BOM:500403) has diversified its portfolio into aerospace and defense sectors, aiming to enhance quality and global competitiveness, which could provide new growth avenues.
- The domestic market performance was moderate, with the company experiencing challenges in aligning with the overall industry growth.
- Currency fluctuations, particularly the weakening of the rupee and European currencies, negatively impacted the company's profit margins due to mark-to-market adjustments.
- Increased borrowings due to capital expenditure and inventory buildup have led to higher interest costs, affecting the company's financial performance.
- The company faces stiff competition and pricing pressure from customers, which could impact profitability if not managed effectively.
- There are delays and uncertainties in the ramp-up of EV-related orders, with initial projections needing recalibration due to market conditions and customer schedules.
Ladies and gentlemen, good day and welcome to the Q3 FY25 earnings conference call of Sundram Fasteners hosted by Avendus Spark. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mukesh Saraf from Avendus Spark. Thank you and over to you Mr. Saraf.
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Thank you, Michelle. Good morning. Mukesh Saraf here from Avendus Spark. Appreciate everybody logging in. From the management team, I am pleased to host Mr. Dilip Kumar, CFO; Mr. S. Bharatan, EVP, Marketing; and Mr. S. Ganesh, VP, Finance and Projects.
We will start with brief opening remarks from Mr. Dilip, and follows up with the Q&A. Over to you Dilip sir.
Yeah, good morning and I welcome all the participants for a discussion on Sundram Fasteners Q3 results and the nine month period. Just by way of the
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