Sundaram Clayton reports 43% hike in net profit to INR 212.26 crore in Q2 FY23

One of India’s biggest auto components manufacturing and distribution groups, Sundaram Clayton Limited (SCL), has announced a consolidated net profit of INR 212.26 crore with a 43 per cent hike after the company had a 32 per cent rise in revenue due to operations, amounting to INR 8,962.55 crore in Q2 FY23 over Q2 FY22.

The automotive, vehicles, and parts sector marked collective revenue of INR 7,473.10 crore, gliding up 30 per cent Y-o-Y. The financial services business amounted to INR 961.07 crore with a 46 per cent Y-o-Y increase; whereas the automotive components board brought INR 786.58 crore in revenue, up by 27 per cent Y-o-Y.

The operational expense in Q2 FY23 has elevated by 31 per cent Y-o-Y to INR 8,398.77 crore, owing to a 26 per cent surge in the cost of raw materials, a 38 per cent spike in employee salaries, and a 21 per cent augmented cost of other auxiliary needs.  

The company’s profit before paying the tax settled at INR 584.75 crore in Q2 FY23, which is 52 per cent more than INR 385.54 crore collected in Q2 FY22.

Founded in 1962, Sundaram Clayton has achieved many prime objectives and made its ground as one of the most admired solution providers in machined and sub-assembled aluminium castings. The company is a major supplier of aluminium die castings to the automotive and non-automotive sectors.

Only recently, on July 29, the Board of Sundaram Clayton appointed R Gopalan and Anuj Shah as Additional Directors or Non-Executive, Non-Independent Directors. R Gopalan was also positioned as Chairman of the Board.

The company looks after the initial blueprint and, on completion, starts developing and later supplying end-products. With extraordinary investments in state-of-the-art technologies, SCL is prepared to fulfill the future requirements of the industry in light metal castings.

Sundaram Clayton has a wide clientele base in the OEM clan like TVS motor, Hyundai Motor India, the Cummins Group, the Volvo Group, the Daimler Group and also component providers like Wabco India and the Visteon Group.