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In a highly competitive auto ancillary segment it is tough for a company to enjoy pric-The 18th China(Guangzhou)Int¡¯l Fastener & Equipment Exhibition
1/10/2017 fastener expo |
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In a highly competitive auto ancillary segment it is tough for a company to enjoy pricing power continuously. However, Sundram Fastener, India''s largest fastener manufacturer, has done so.
High realisations and increasing share of superior margin products have enabled the Chennai-based firm to achieve a return on equity (RoE) of 21.84% in FY16, outstripping the industry RoE by nearly 2.2 times.
Typically , RoE expansion implies a company has been able to profit more on the same unit of volume sold. Hence, it''s an indication of pricing power.
In the past four years, Sundram has consistently expanded its operating profit margins, which stood at 18.9% in the September quarter of FY17 against 12% in FY12, a gain of 700 bps.
-The 18th China(Guangzhou)Int¡¯l Fastener
& Equipment Exhibition
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