Auto slowdown impacts firm
Sundaram-Clayton Ltd.’s (SCL), a TVS Group company, standalone net profit for the second quarter ended September 2019 dipped by 88.66% to ₹1.37 crore on reduced production and employee separation programme , reflecting the slowdown in the automobile industry.
The company reported a one-time exceptional charge of ₹7.07 crore representing voluntary separations.
The leading manufacturer of machined aluminium die-castings for passenger cars, commercial vehicles and two-wheelers, reported a total income of ₹344 crore against ₹486.70 crore.
During the quarter under review, SCL’s plants in Padi and Mahindra World City, near Chennai, were closed for 15 days due to the slowdown in commercial vehicle and tractor sales. However, the Hosur plant was not affected as it catered to the two-wheeler industry.
“There has been a dip in our net profit due to reduction in production. We also reduced employee costs through voluntary separations. We are managing the situation as exports account for 40% of our revenue,” said a top official.
Shares of the company gained 5.31% to close at ₹2,055.70 on the BSE on Friday.
Source: Read Full Article