• Domestic sales (net of excise duty) of the company increased by 17% to Rs. 2,146.76 crores from Rs. 1,836.61 crores. Increase in production of light commercial vehicles and passenger vehicles led to improved domestic sales . There has been a sharp increase in aftermarket sales due to specific initiatives undertaken by the Company. Export sales of the company increased by 10% to Rs. 1,144.46 Crores from Rs. 1,044.11 crores. The company’s continued investments for manufacturing of new products are expected to result in further improvement in performance in the years ahead.
  • The Company has transferred Rs. 300 Crores to Reserves.
  • Sundram Fasteners (Zhejiang) Limited, China (SFZL, China) and Cramlington Precision Forge Limited, United Kingdom (CPFL, UK) are step-down overseas subsidiaries of the Company. The principal activity of CPFL, UK is manufacture of precision forgings and that of SFZL, China is manufacture of fasteners and bearing housing. SFZL, China has recently set-up a foundry division to enable backward integration for the above products.
  • The revenue from operations from CPFL, UK during the year under review was at Rs. 8,217.48 lakhs as against Rs. 6,901.47 lakhs in the previous year. The net profit / (loss) was at Rs. (458.72) lakhs as against Rs. 148.15 lakhs in the previous year.
  • The revenue from operations from SFZL, China during the year under review was at Rs. 18,774.99 lakhs as against Rs. 13,350.36 lakhs in the previous year. The net profit was at Rs. 1,331.43 lakhs as against Rs. 740.12 lakhs in the previous year.
  • TVS Upasana Limited is a wholly-owned subsidiary and is engaged in the manufacture of Spokes and Nipples, automobile kits, tools, dowel pins, small screws, Cold Extruded Parts and other parts catering to automotive industry. The revenue from operations from TVS Upasana Limited during the year under review was at Rs. 15,541.16 lakhs as against Rs. 14,793.60 lakhs in the previous year. The net profit was at Rs. 1,744.50 lakhs as against Rs. 1,106.97 lakhs in the previous year.
  • Sundram Precision Components Limited (SPCL), a wholly- owned subsidiary is engaged in the manufacture of parts for motor vehicle, sintered parts such as valve guides, valve seats and other parts catering to automotive industry. The revenue from operations from SPCL during the year under review was at Rs. 2,645.32 lakhs as against Rs. 2,368.94 lakhs in the previous year. The net profit was at Rs. 193.00 lakhs as against Rs. 253.51 lakhs in the previous year. The Board of Directors at their meeting held on May 24, 2017 had approved the scheme of amalgamation of Sundram Precision Components Limited with the Company and the relevant process is in preliminary stage.
  • TVS Infotech Limited (TVSi), a subsidiary is engaged in information technology business providing Enterprise Solutions for core industries like Manufacturing, Automotive and Distribution and focuses on off-shore and outsourcing operations for clients in India and the U.S.A. The revenue from operations from TVSi during the year under review was at Rs. 728.21 lakhs as against Rs. 1,993.64 lakhs (sale of SAP business during the financial year 2016-17) in the previous year. The net profit was at Rs. 15.49 lakhs as against Rs. 14.04 lakhs in the previous year.
  • TVS Next Private Limited (TVSN) is a subsidiary of TVSi and a step-down subsidiary of the Company. TVSN’s focused efforts in targeting USA market and Indian Enterprise customers paid dividends in the form of increased revenues. The Company maintains a healthy sales pipeline in both USA and India. Improved utilisation of resources and relentless focus on cost control helped achieve higher profits this year. The revenue from operations from TVSN was at Rs. 1,567.10 lakhs during the year under review as against Rs. 986.55 lakhs in the previous year. The net profit / (loss) was at Rs. 70.69 lakhs as against Rs. (63.08) lakhs in the previous year.
  • Steel is one of the principal raw materials used by the Company. The steel prices increased steadily during the year. Manpower costs increased due to a general hike in salaries granted to retain talent in a competitive environment as well as increase in dearness allowances in line with cost of living index. Also, provisions have been made for long term wage settlement for unionized employees at various factories, negotiation of which is in progress. Power availability remained firm and costs remained within control throughout the year due to the measures taken by the Company over the years to use alternative sources of power such as wind power. The operating margin has improved as a result of product mix and stable cost structure.
  • The Company has made investments in creation of capacities for meeting specific requirements of customers to meet projected demand from domestic and international customers. Financing costs amounted to Rs. 32.56 crores (Rs. 36.32 crores). The Company has reduced the finance cost through a combination of competitive sourcing of funds and efficient working capital management.
    • During the year, the Company has incurred Rs. 217 crores towards capital expenditure on existing and new projects. Capital investments were incurred in tandem with production plans of key customers.

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