Chennai: Fasteners major Sundram Fasteners closed the year 2002-03 with a total sales of Rs 519.44 crore as against Rs 433.17 crore achieved during the previous year.
Domestic sales of the company increased to Rs 423.38 crore as against Rs 351.44 crore during 2001-02. Last year exports were higher at Rs 96.06 crore compared to Rs 81.73 crore during the previous year - an increase of 17.5 per cent, in spite of slowing economies worldwide.
The higher volume of sales, both domestic and exports, and better realisation in exports resulted in improved profits. With the economy showing signs of improvement, all segments of customers other than the tractor segment performed better than in recent years.
Operating expenses, including excise duty, were at Rs 435.89 crore compared to Rs 365.54 crore during the previous year. The gross profit before interest, depreciation, extraordinary items and provision for taxation increased to Rs 85.50 crore during the year as against Rs 69.40 crore during the previous year.
There has been a marked reduction in the interest charges at Rs 6.10 crore (Rs 12.97 crore) due to improved cash flow and interest rate management.
Depreciation for the year was Rs 12.99 crore (Rs 13.22 crore). The company incurred Rs 0.14 crore (Rs 2.28 crore) towards extraordinary expenditure in respect of the early retirement scheme.
The provision for taxation, inclusive of deferred taxation, was higher at Rs 20.88 crore (Rs 11.72 crore) due to lower fiscal incentives available in respect of units at Pondicherry and on exports.
The net profit after tax was Rs 45.39 crore as against Rs 29.21 crore for the previous year. Earnings per share for the year 2002-03 amounted to Rs 44.43 as against Rs 28.59 for the previous year.
The board of directors has recommended a dividend of Rs 12 per share for the year 2002-03 (as against Rs 10 per share paid for the previous year), which will absorb Rs 12.26 crore (Rs 10.22 crore). A sum of Rs 30 crore has been transferred to the general reserve.