• OUTLOOK ARENA
  • VIEWS ON NEWS
  • APRIL 19, 2001

Sundaram Clayton FY01 net dips 21% YoY

Sundaram Clayton, a leading manufacturer of hyrdaulic brake actuator systems and castings has reported a 20% decline in its net for FY01 to Rs 182 m. The company's sales have grown by only 4% during the year.

(Rs m) 4QFY00 4QFY01 Change FY00 FY01 Change
Sales 654.7 717.7 10% 2,318.3 2,403.0 4%
Other income 33.2 19.6 -41% 145.6 144.9 0%
Expenditure 586.1 617.1 5% 2,074.5 2,198.1 6%
Operating Profit (EBDIT) 68.5 100.6 47% 243.8 204.9 -16%
Operating Profit Margin (%) 10.5% 14.0%   10.5% 8.5%  
Interest -2.3 2.9 -230% 6.0 16.0 167%
Depreciation 22.5 26.6 18% 79.9 96.6 21%
Profit before tax/Loss 81.5 90.7 11% 303.4 237.2 -22%
Tax 21.3 25.1 18% 76.7 55.0 -28%
Profit after Tax/(Loss) 60.2 65.6 9% 226.7 182.2 -20%
Net profit margin (%) 9.2% 9.1%   9.8% 7.6%  
No. of Shares (eoy) (m) 18.96 18.96   18.96 18.96  
Diluted number of shares 18.96 18.96   18.96 18.96  
Diluted Earnings per share* 12.7 13.8   12.0 9.6  
*(annualised)            

Its main clients in the hydraulic brake systems are Telco and Ashok Leyland. As the medium and heavy commercial vehicles segment saw a sharp decline in volumes in FY01 hence the company's sales have been under pressure. Its foundry division too is facing tough times as the passenger car segment too has slowed down.

However due to pick up in commerical vehicle volumes in the 4QFY01, the company's operating margins and sales growth have showed an improvement.

The company's operating margins declined from 10.5% in FY00 to 8.5% in FY01, due to higher raw material and staff expenses. Besides the pressure on sales growth too added to the decline in operating margins. However in the 4QFY01, operating margins showed a vast improvement due to a pick up in passenger cars as well as some improvement in commerical vehicles as well as reduction in certain operating expenses.

On the current price of Rs 59, Sundram Clayton is trading at 6.1x FY01 EPS of Rs 9.6

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407