Sundram Fasteners (SUNDRMFAST) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 standalone revenue was INR 1,256.89 Cr, up from INR 1,178.61 Cr YoY, with PAT at INR 120.36 Cr, up from INR 116.13 Cr, driven by cost control and export growth.

• Consolidated Q3 FY25 revenue reached INR 1,444.04 Cr, up from INR 1,367.25 Cr YoY, with PAT at INR 130.73 Cr, up from INR 129.44 Cr.

• Nine-month standalone revenue was INR 3,869.24 Cr (up 6% YoY), with PAT at INR 382.64 Cr (up 10% YoY); consolidated revenue was INR 4,445.96 Cr, with PAT at INR 417.26 Cr.

• Export segment registered 15% growth to INR 1,174.47 Cr for the nine months, aided by rupee depreciation and increased volumes.

• Management remains cautiously optimistic for Q4, expecting improved customer pull and inventory build-up to support performance.

Financial highlights

• Standalone Q3 FY25 EBITDA was INR 201 Cr (16.7% margin), up from INR 156 Cr (16.1%) YoY; YTD EBITDA was INR 651 Cr (16.8% margin).

• Consolidated Q3 FY25 EBITDA was INR 231 Cr (16.0% margin), nearly flat YoY; YTD EBITDA was INR 741 Cr (16.7% margin).

• Standalone EPS for Q3 FY25 was INR 5.73, up from INR 5.53 YoY; consolidated EPS was INR 6.21, up from INR 6.12.

• Borrowings increased due to INR 300 Cr CapEx and inventory build-up, leading to higher interest costs.

• Favorable tax assessments resulted in lower tax provisions for the quarter.

Outlook and guidance

• Management expects Q4 to be stronger, supported by inventory build-up and positive customer schedules.

• FY26 domestic segment expected to grow 5%-6%, with export growth muted but company aims to outperform industry.

• Export revenue for FY25 projected between $180 million-$200 million, with potential for 15% growth next year.

• EBITDA trajectory for FY26 anticipated between 70%-80% due to rupee weakness and additional export volumes.

• CapEx of INR 309.59 Cr for nine months aligns with plans to scale in non-auto, EV, hybrid, and adjacent spaces.