Earnings● Neutral
Sundaram Clayton Q1: Loss widens as costs hit margins
Sundaram Clayton's Q1 consolidated loss widened to ₹59 crore on higher raw material and freight costs, despite a 16% revenue jump. The auto parts maker flagged geopolitical risks and elevated interest rates as near-term headwinds.
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Sundaram Clayton Ltd reported a consolidated net loss of ₹59 crore for the quarter ended June 30, wider than the ₹58 crore loss a year earlier, as higher raw material and logistics costs ate into margins despite a 16% revenue jump.
The Chennai-based maker of engineered aluminium diecast components for the automotive sector posted consolidated revenue of ₹592 crore, up from ₹512 crore in the same quarter last year. The company blamed rising input costs for raw materials, fuel and freight for the margin squeeze.
On a standalone basis, net profit was flat at ₹17 crore.
“Increase in aluminium prices, energy costs, and freight rates are exerting pressure on input costs and operating margins,” the company said in a statement. It said it was monitoring the situation and taking steps to improve supply chain resilience.