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Sundram Fasteners Limited has recorded total sales of Rs.290.07 crore for the Half Year ended 30th September 2003 as against Rs.247.33 crore for the corresponding period in the previous year, an increase of over 17%.

Even though the Rupee gained during the period, the export sales of the Company increased to Rs.54.96 crore as compared to Rs.45.68 crore during the same period in the previous year, an increase of about 20%.

Operating expenses, including excise duty, were at Rs.244.47 crore compared to Rs.205.77 crore during the same period in the previous year. Gross Profit before interest, depreciation and provision for taxation increased to Rs.47.35 crore as compared to Rs.42.76 crore in the previous year, an increase of about 11%.

Operating margins during the period were under strain due to continuous pressure on domestic selling prices, appreciation of rupee vis-à-vis dollar and steep hike in the cost of inputs, especially steel.

The Company had earned a net interest income of Rs.0.60 crore for the period, as compared to a net interest expense of Rs.4.45 crore for the same period in the previous year.

Profit before depreciation was higher by 25% at Rs.47.95 crore, as compared to Rs.38.31 crore during the same period last year.

Depreciation for the period was at Rs.6.88 crore (Rs.6.35 crore). Provision for taxation including deferred taxation was higher at Rs.13.31 crore (Rs.10.21 crore) due to lower fiscal incentives on exports.

The net profit after tax for the period was Rs.27.76 crore as against Rs.21.75 crore for the same period in the previous year, an increase of about 28%.

The board of directors have decided to sub-divide the present equity share of Rs.10/- each fully paid up to 10 equity shares of Rs.1/- each fully paid up subject to the approval of the shareholders.

Subject to the approval of the shareholders, court and other regulatory authorities, the board of directors have also decided to amalgamate the subsidiary company, TVS Autolec Limited, with the company with effect from 1st April 2003 by allotting 10 equity shares of Rs.1/- each of the Company (post-split) for every 6.4 equity shares of Rs.10/- each in TVS Autolec Limited.

The merger ratio has been arrived at in line with the valuation reports and suggestions of the Credit Rating Information Services of India Limited (CRISIL) and ICRA Limited.

The Board of Directors vide its Resolution adopted today has decided to fix the Record Date as 1st December 2003 for payment of interim dividend on equity shares as may be decided by the Board for the financial year ending 31st March 2004.