Chennai, India – January 31, 2025 – Sundaram-Clayton Limited (BSE: 544066, NSE: SUNCLAY) has announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2024. The company reported a decline in both revenue and profit, primarily attributed to higher input costs and operational restructuring expenses.
Key Financial Highlights (Standalone)
| Metric | Q3 FY25 (₹ Crore) | Q2 FY25 (₹ Crore) | Q3 FY24 (₹ Crore) | YoY Change |
|---|---|---|---|---|
| Revenue from Operations | 496.43 | 539.13 | 497.52 | ▼ 0.2% |
| Total Income | 500.09 | 542.13 | 520.27 | ▼ 3.9% |
| Profit Before Tax | 14.75 | 23.92 | 27.58 | ▼ 46.5% |
| Net Profit | 10.35 | 20.96 | 17.61 | ▼ 41.2% |
| Earnings Per Share (₹) | 4.78 | 10.36 | 8.70 | ▼ 45.0% |
- Revenue remained nearly flat YoY, dropping slightly by 0.2% to ₹496.43 crore, while quarterly revenue saw a 7.9% decline.
- Net profit fell by 41.2% YoY and 50.6% sequentially, mainly due to higher finance costs (₹20.13 crore) and depreciation expenses (₹30.82 crore).
- Exceptional costs of ₹7.97 crore were incurred due to the relocation of manufacturing equipment to the newly established plant in Thervoy Kandigai, Chennai.
Consolidated Financial Performance
| Metric | Q3 FY25 (₹ Crore) | Q2 FY25 (₹ Crore) | Q3 FY24 (₹ Crore) | YoY Change |
|---|---|---|---|---|
| Revenue from Operations | 529.35 | 562.60 | 550.80 | ▼ 3.9% |
| Total Income | 533.01 | 565.60 | 573.55 | ▼ 7.1% |
| Profit Before Tax | (39.02) | (51.21) | (52.93) | ▲ 26.3% |
| Net Profit | (44.15) | (54.20) | (62.90) | ▲ 29.8% |
| EPS (₹) | (20.34) | (26.79) | (31.08) | ▲ 34.5% |
- The company reported a consolidated net loss of ₹44.15 crore, an improvement from the ₹62.90 crore loss in Q3 FY24.
- Revenue declined by 3.9% YoY, reflecting demand fluctuations and lower exports.
- Cost pressures, including employee benefits (₹87.70 crore) and finance costs (₹27.13 crore), weighed on profitability.
Strategic Developments
- Qualified Institutional Placement (QIP)
- The company raised ₹400 crore via QIP on October 8, 2024, at ₹2,205 per share.
- Funds were used to repay debt and support general corporate purposes.
- Investment in Subsidiary
- ₹178.29 crore was invested in Sundaram Holding USA Inc., reinforcing its global presence.
- Debt Position & Credit Rating
- Net Debt to Equity improved to 0.84x (from 1.08x a year ago).
- Credit rating (CRISIL) remains at AA-/Negative, reflecting concerns over financial performance.
Management Commentary
R. Gopalan, Chairman of Sundaram-Clayton Limited, stated:Outlook for FY25
- Gradual recovery in demand expected in domestic and international markets.
- Focus on cost optimization and operational efficiency to drive margin improvement.
- Debt reduction remains a priority, following the QIP fund utilization.