Sundram Fasteners Q4 FY25 Results: Rs 539 Cr Net Profit, Rs 5,983 Cr Revenue

Sundram Fasteners Soars: A Legacy Forged in Growth, Propelling Towards a Brighter Future

NEW DELHI (India CSR): In the dynamic landscape of India’s manufacturing sector, where resilience meets innovation, Sundram Fasteners Limited (SFL) has once again demonstrated its formidable strength and strategic prowess. As the company unveils its Annual Report for the financial year 2025, the figures paint a compelling picture of sustained growth and operational excellence, reinforcing its position as a stalwart in the industry. Beyond mere numbers, SFL’s performance reflects a deeply human-centered approach to business, navigating global complexities while fostering local impact and technological advancement. This detailed analysis dives into the company’s financial highlights, key strategic moves, and the underlying factors contributing to its impressive trajectory.

Sundram Fasteners FY25: Key Metrics, Growth Drivers, and Performance Overview

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Overall Financial Performance: A Robust Ascent

For the financial year ended March 31, 2025, Sundram Fasteners Limited reported a remarkable increase in its financial performance, both on a standalone and consolidated basis, indicating strong underlying business momentum. The company’s total standalone revenue climbed to Rs 5,231.33 crores, marking a notable increase from Rs 4,952.98 crores in the previous fiscal year, 2023-24. This represents a steady growth in its core operations. Revenue from standalone operations specifically reached Rs 5,209.74 crores in FY 2025, up from Rs 4,905.65 crores in FY 2024.

On a consolidated level, encompassing its subsidiaries, the Group’s total revenue stood at Rs 5,983.74 crores for the year under review, a significant rise from Rs 5,720.47 crores in the prior year. The consolidated revenue from operations followed a similar upward trend, achieving Rs 5,955.42 crores in FY 2025, compared to Rs 5,666.31 crores in FY 2024. This comprehensive growth highlights the synergistic strength of SFL’s diverse operations and its subsidiaries.

Profitability also saw a healthy surge. Standalone Profit Before Tax (PBT) increased to Rs 680.59 crores in FY 2025 from Rs 639.07 crores in FY 2024, demonstrating improved operational efficiency and cost management. Correspondingly, the standalone Profit After Tax (PAT), or net profit, rose to Rs 517.01 crores in FY 2025, compared to Rs 479.71 crores in the previous year. The consolidated net profit attributable to the owners of the parent also saw a positive trajectory, reaching Rs 539.10 crores in FY 2025, up from Rs 521.68 crores in FY 2024. This consistent growth across both standalone and consolidated statements underscores the company’s financial stability and expanding market presence.

The Earnings Before Interest, Depreciation, and Tax (EBITDA) also showed an upward trend, with standalone EBITDA reaching Rs 864 crores in FY 2025, an increase from Rs 825 crores in the preceding year. This reflects a robust core business performance. The company’s Net Profit Margin for FY 2025 slightly improved to 9.92%, from 9.78% in FY 2024, indicating better control over expenses relative to revenue.

Key Revenue Drivers: Domestic and Export Prowess

Sundram Fasteners Limited’s revenue streams are primarily driven by its sales in both domestic and international markets, supported by its diverse product portfolio. The company specializes in the manufacturing of metal and metal products, which accounts for 100% of its turnover. Within this, High Tensile Fasteners contribute significantly at 40.41% of the total turnover, while Parts and accessories for motor vehicles make up the larger share at 59.59%. This product segmentation underscores SFL’s critical role in the automotive industry and beyond.

On the domestic front, the company demonstrated steady growth. Domestic sales increased by 3.56%, climbing from Rs 3,339.20 crores in FY 2024 to Rs 3,457.95 crores in FY 2025. This steady growth in the home market reflects stable demand and SFL’s strong brand presence.

However, the more impressive growth story lies in its international outreach. Export sales surged by 12.39%, rising from Rs 1,409.43 crores in FY 2024 to Rs 1,584.09 crores in FY 2025. This strong performance in exports, significantly outpacing domestic growth, is indicative of favorable customer demand overseas and SFL’s competitiveness in global markets. Overall, exports contributed approximately 30% of the total turnover in FY 2025. The company serves a wide array of customer segments, including automotive, wind energy, aerospace, defense, farm equipment, and industrial sectors, with the automotive segment being the most significant contributor.

Global Footprint: Subsidiary Contributions

SFL’s global presence is extended through its four domestic and five overseas subsidiaries. The performance of these subsidiaries plays a crucial role in the Group’s consolidated results, although their aggregate contribution to the consolidated revenue slightly decreased year-on-year. In FY 2025, the total revenue earned by all subsidiaries in aggregate was Rs 856.10 crores, contributing 14.31% of the consolidated revenue, compared to Rs 874.63 crores, or 15.29% of the consolidated revenue, in FY 2024.

Key international subsidiaries include:

• Sundram Fasteners (Zhejiang) Limited, China (SFZ, China): This step-down subsidiary, primarily engaged in the manufacture of fasteners and bearing housings, reported a total revenue of Rs 395.17 crores in FY 2025, up from Rs 368.61 crores in the previous year. Its net profit also increased to Rs 20.63 crores from Rs 19.95 crores. SFZ, China, remains a strong contributor to the Group’s international revenue.
• Cramlington Precision Forge Limited, United Kingdom (CPF, UK): This step-down subsidiary, manufacturing precision forgings, experienced a decline in revenue, recording Rs 142.74 crores in FY 2025 compared to Rs 183.33 crores in FY 2024. Consequently, its net profit also fell to Rs 8.75 crores from Rs 14.71 crores in the previous year.
• TVS Next Inc., USA: Another step-down subsidiary, its revenue slightly decreased to Rs 61.23 crores in FY 2025 from Rs 62.00 crores in FY 2024. Its net profit saw a more significant drop, from Rs 0.81 crores to Rs 0.35 crores.

Domestically, key subsidiaries include:

• TVS Upasana Limited: A wholly-owned subsidiary engaged in manufacturing spokes, nipples, automobile kits, and cold extruded parts. It maintained a steady revenue at Rs 178.76 crores in FY 2025 (compared to Rs 178.82 crores in FY 2024), while its net profit increased to Rs 8.86 crores from Rs 7.92 crores.
• TVS Next Limited: A subsidiary focused on information technology business, providing enterprise solutions. Its revenue marginally decreased to Rs 74.01 crores in FY 2025 from Rs 75.52 crores in FY 2024, and its net profit declined to Rs 5.45 crores from Rs 7.45 crores.

The mixed performance of the subsidiaries indicates both strong points and areas of pressure, contributing to the overall consolidated picture.

Operational Efficiencies and Sustainable Practices

Sundram Fasteners is deeply committed to sustainable and responsible operations, integrating environmental, social, and governance (ESG) principles into its business conduct. The company has made significant strides in energy conservation, particularly by increasing its reliance on renewable energy (RE) sources. In FY 2025, the total renewable energy consumption aggregated to 1,572.84 lakh units, representing 50.65% of its total power consumption. This is an improvement from 1,311.02 lakh units, or 47.25% of total power consumption, in FY 2024. This increased use of renewable energy has resulted in a substantial reduction of Green House Gases equivalent to 1,14,345 tCO2e. The company achieves this through Group Captive and Onsite Solar modes, including rooftop solar panels in its factories to optimize power costs.

SFL also actively mitigates raw material price risks, primarily for steel, by identifying alternate sources, exploring alternative material usage, and engaging in price negotiations. Yield improvement projects have further helped in reducing raw material consumption, contributing to overall operational efficiency. The company’s commitment to quality is evident in its pursuit of a “zero incident work culture” and the implementation of a “Can’t make the defect” concept to strengthen manufacturing processes and ensure robust process control, leading to reduced customer complaints and internal rejections. The company also achieved ISO 45001 certification across all locations except one, which is in process, by 2025, a standard for Occupational Health and Safety Management Systems (OHSMS).

Strategic Investments and Future Outlook

Sundram Fasteners’ strategic vision for growth is underlined by its substantial capital expenditure. In FY 2025, the company incurred a capital expenditure of Rs 376.43 crores. These investments are crucial for scaling operations in non-auto, electric vehicle (EV), hybrid, and adjacent market segments. This forward-looking approach positions SFL to capitalize on emerging opportunities in the evolving automotive and industrial sectors.

The company anticipates sustained economic growth in India, with GDP projected to grow at 6.5% in 2025-26. Factors such as increased allocation towards capital expenditure in the Union budget (approximately Rs 11 lakh crores) are expected to provide impetus for growth, particularly benefiting the Commercial Vehicle segment. A favorable monsoon forecast for the upcoming year is also expected to boost rural demand, thereby driving growth in the two-wheeler and tractor segments.

However, the company acknowledges potential challenges, including the impact of Bharat Stage TREM V emission norms on the tractor industry from April 1, 2026, which may lead to pre-buying in 2025-26. Geopolitical risks, extreme weather conditions, and volatility in USD-INR exchange rates (though the rupee rebounded in FY25, it may experience volatility) remain external concerns. Despite these, SFL is confident in India’s talent pool and its ability to offer sustainable growth.

Financial Health and Key Ratios

While the overall financial performance is strong, a closer look at key ratios provides deeper insights. The Debt-Equity Ratio, an important indicator of financial leverage, increased to 0.16 in FY 2025 from 0.11 in FY 2024, representing a 45% change. The company attributes this increase to a build-up of inventory, changes in credit terms of key customers, and increased capital expenditure. Despite this increase, a ratio of 0.16 is still considered healthy, indicating that the company is not overly reliant on debt.

The Operating Profit Margin (EBITDA to revenue from operations) slightly decreased to 16.6% in FY 2025 from 16.8% in FY 2024. Similarly, the Return on Net Worth saw a minor decline to 14.93% in FY 2025 from 15.51% in FY 2024, which the company attributes to a higher net worth compared to the previous year. These minor shifts are part of normal business fluctuations and do not indicate a significant deterioration in performance, especially given the substantial investments made.

Commitment to Stakeholders and Corporate Governance

Sundram Fasteners demonstrates a strong commitment to its stakeholders through robust corporate governance and social responsibility initiatives. The company’s Business Responsibility and Sustainability Report for FY 2025 is enclosed within its Annual Report, highlighting its dedication to transparent disclosures.

SFL actively engages in Corporate Social Responsibility (CSR) activities, focusing predominantly on education and healthcare for vulnerable communities. This includes:

• Support for the Clarke School for the Deaf: Dedicated to educating and rehabilitating hearing-impaired and differently-abled children.
• Assistance to deserving students: Through institutions like the Sugun Thomas Foundation, the company helps students pursue undergraduate education, removing financial barriers.
• Sundram Fasteners Centre for Social Action and Research: Established in collaboration with the Banyan Academy for Leadership in Mental Health (BALM) to address gaps in the mental health sector for marginalized communities. This center has empowered over 817 students through educational programs.
• Sundram Matriculation Higher Secondary School, Aviyur: Provides quality education to 479 students, including 227 girl students, from 8 villages near the Krishnapuram plant.
• Sundram Medical Centre: Offers free healthcare facilities to over 2,500 families near the Krishnapuram operations, enabling access to medical care and health education.

In FY 2025, the company spent Rs 12.98 crores on CSR projects, exceeding its total CSR obligation of Rs 12.27 crores. This highlights SFL’s unwavering dedication to social upliftment.

SFL also ensures strong corporate governance, with a separate report on Corporate Governance enclosed in the annual report. The company has a Vigil Mechanism/Whistle Blower Policy for stakeholders to report unethical behavior, fraud, or code of conduct violations. No instances of disciplinary action against directors, KMPs, employees, or workers for bribery/corruption were reported in FY 2025 or FY 2024. Furthermore, there were no complaints regarding conflict of interest of directors or KMPs in the same periods.

Awards and Recognition

SFL’s commitment to quality and operational excellence is further validated by the numerous accolades it received in FY 2025. These include:

• “Zero Defect Award” from John Deere India Private Limited.
• “Zero Defect Award” from SKF India Limited.
• “Zero Defect Award” from DAF Trucks.
• “S” Level certification in Supplier Quality Evaluation from Hyundai Motor India Limited for its Fasteners Division, Puducherry.
• “RHODIUM” award from ABK-AOTS DOSOKAI, Tamil Nadu Centre.
• “Gold” award from QCFI (Quality Circle Forum of India).
• “Silver” award for excellence in Safety from ACMA (Automotive Component Manufacturers Association of India).

These awards are a testament to the company’s sustained efforts in maintaining high standards of quality, safety, and efficiency across its operations.

You Learn: Forging Ahead with Confidence

Sundram Fasteners Limited’s financial performance in FY 2025 underscores its deep-rooted strength and adaptability. Despite minor fluctuations in certain ratios and the challenges inherent in a globalized economy, the company’s consistent growth in revenue and profit, combined with strategic investments and a strong commitment to sustainability and social responsibility, positions it for continued success. With a clear vision for growth, a focus on technological advancement, and a dedication to its stakeholders, Sundram Fasteners Limited is not just a manufacturer; it is a vital engine driving progress in the Indian and global automotive and industrial sectors, forging a path towards a more prosperous and sustainable future.

(India CSR)