Leading auto parts maker Sundram Fasteners Ltd (SFL) has announced a pay cut for staff and managers.
Given the impact of the coronavirus pandemic, the compensation owed to SFL employees has been reduced by 15% to 35%.
The President voluntarily reduced his compensation by 50 percent and the President, CEO and Deputy CEO voluntarily waived the commission due to them for the 2020-2021 fiscal year resulting in a reduction in their compensation by 70 percent , according to a statement.
The TVS group company reported a significant drop in its (stand-alone) net profit to 46.80 crore for the March 2020 quarter from ₹ 107.35 crore in the previous year period. Income was 719.60 crore compared to 1,004.25 crore.
Net profit drops
For the fiscal year ended March 31, 2020, Sundram Fasteners (standalone) net profit declined to 314.04 crore from ₹ 436.19 crore the previous year.
EBITDA was less than 568.07 crore (₹ 768.95 crore). Revenue decreased to 3,124.57 crore from 3,990.22 crore in fiscal year 20. Domestic sales were less than 1,900.97 crore (2,456.74 crore), while sales at the export amounted to 1,117.16 crore (1,382.99 crore).
“Our major customers in the United States have faced a downturn due to the cyclical nature of the industry,” the statement said.
The company’s new export unit in SriCity, Andhra Pradesh, started commercial production and made the first shipment to Germany in January.
The company has transferred ₹ 200 crore to the general reserve and no final dividend has been offered.