Sundram Fasteners reduced net debt by 35% in fiscal 21

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The company has invested ₹ 140 cr. on capital expenditure

Sundram Fasteners Ltd. (SFL) reduced its net debt by 35% to ₹ 443 crore in fiscal 2021, a year in which the auto industry has been hit hard by the COVID-19 pandemic.

The auto component maker, part of the TVS group, had net debt of 681 crore a year earlier. In fiscal 2021, it incurred capital expenditures of 140 crore yen on existing and new projects in tandem with the production plans of key customers, SFL said in its latest annual report.

“Sector ready for growth”

SFL said that after two years of sluggishness, India’s auto sector is expected to post double-digit growth in the next fiscal year thanks to improved economic activity and personal incomes.

Consumer data such as sales of fast-moving consumer goods and automobiles, and Goods and Services Tax (GST) collections indicated a pickup in demand. The government allocating 5,000 billion yen for capital spending in the latest budget is expected to pave the way for faster growth in the automotive segment, he added.

Government policies aimed at promoting self-reliance in the defense and aerospace sectors have focused on the implementation of advanced technologies. This improves domestic manufacturing potential and provides more opportunities for SFL, the company said.


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