Revenue and Profit Growth Trajectory
Over the seven-year period ending March 2025, Sundram Fasten. has seen its net sales rise from ₹4,557.90 crores in 2019 to ₹5,955.42 crores in 2025, reflecting a robust expansion in its top line. The company’s total operating income mirrors this trend, with a notable jump from ₹3,644.29 crores in 2021 to nearly ₹6,000 crores in 2025, underscoring a strong recovery and growth post-pandemic disruptions.
Operating profit (PBDIT) excluding other income has also improved steadily, reaching ₹944.14 crores in 2025 from ₹800.42 crores in 2019. Including other income, operating profit rose to ₹972.46 crores in 2025, indicating effective cost management alongside revenue growth. Profit before tax increased from ₹652.44 crores in 2019 to ₹715.00 crores in 2025, while consolidated net profit climbed from ₹457.49 crores to ₹539.10 crores over the same period.
Margin Stability and Earnings Per Share
The company has maintained relatively stable operating profit margins, fluctuating between 15% and 18% over the years. In 2025, the operating margin stood at 15.85%, slightly below the peak of 18.22% recorded in 2021 but consistent with industry norms. Gross profit margins have similarly hovered around 15% to 18%, reflecting steady cost control despite raw material price volatility.
Profit after tax (PAT) margins have remained in the range of 9% to 10%, with a slight dip to 9.1% in 2025 from 10.44% in 2019. Earnings per share (EPS) have shown a positive trajectory, rising from ₹21.77 in 2019 to ₹25.66 in 2025, signalling enhanced shareholder returns and profitability growth.
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Balance Sheet Strength and Asset Growth
Sundram Fasten.’s balance sheet has strengthened considerably, with shareholder funds rising from ₹1,995.92 crores in 2020 to ₹3,810.31 crores in 2025. Total reserves have more than doubled from ₹1,848.96 crores in 2019 to ₹3,789.30 crores in 2025, reflecting retained earnings and capital accumulation. The company’s net block of fixed assets has also expanded steadily, reaching ₹2,152.11 crores in 2025, indicative of ongoing capital investment.
Total liabilities have increased in line with asset growth, standing at ₹5,526.54 crores in 2025 compared to ₹3,548.58 crores in 2020. Notably, total debt has been managed prudently, with a reduction from ₹885.46 crores in 2020 to ₹796.12 crores in 2025, supporting a healthier leverage profile. The book value per share has improved significantly from ₹95 in 2020 to ₹181.36 in 2025, signalling enhanced net asset value per share.
Cash Flow and Working Capital Management
Cash flow from operating activities has shown resilience, with ₹423 crores generated in 2025, albeit lower than the ₹717 crores recorded in 2020. The company has consistently invested in its operations, with cash outflows from investing activities averaging around ₹300-₹380 crores annually. Financing activities have seen net outflows, reflecting debt repayments and shareholder returns.
Working capital changes have been somewhat volatile, with a significant negative impact of ₹363 crores in 2025, indicating increased inventory or receivables. Nevertheless, net current assets have improved from ₹293.04 crores in 2020 to ₹1,333.55 crores in 2025, demonstrating better liquidity and operational efficiency.
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Summary of Historical Performance
In summary, Sundram Fasten. has exhibited a commendable historical performance marked by steady revenue growth, consistent profitability, and a strengthening balance sheet. Despite some margin fluctuations and working capital challenges, the company has maintained solid earnings growth and improved shareholder value over the years. Its prudent debt management and ongoing capital investments position it well for sustained future growth.
Investors seeking a stable auto components player with a track record of resilience and incremental gains may find Sundram Fasten.’s historical financials reassuring. However, monitoring margin trends and working capital dynamics will be essential to assess ongoing operational efficiency and profitability sustainability.
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