Sundram Fasteners Ltd. — Capital/Financing Update 2024

Jun 18, 2024

Sundram Fasteners Limited REGISTERED & CORPORATE OFFICE

Email: investorshelpdesk@sa.co.in

98.A. VII FLOOR DR. RADHAKRISHNAN SALAI, MYLAPORE. CHENNAI . 600 004. INDIA TELEPHONE , +93 . 44 . 28478500 PAN : AAACS8779D CIN : L35999TN 1962PLCO04943 WEBSITE : www.sundram.com

June 18, 2024

National Stock Exchange of India Limited

Scrip Code - SUNDRMFAST Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051

BSE Limited

Scrip Code - 500403 Phiroze Jeejeebhoy Towers, DalaI Street, Fort, Mumbai - 400 001 By Listinq Centre

By NEAPS

Dear Sir/ Madam,

Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations, 2015)

Pursuant to Regulation 30 of the SEBI LODR Regulations, 2015, please find attached the paper clipping as published in the Business Line Newspaper dated June 18, 2024.

Kindly take the above information on record.

Thanking you,

Yours truly,

For SUNDRAM FASTENERS LIMITED

GOPALAKRISH NAN ANAND BABU Digitally signed by GOPALAKRISHNAN ANAND BABU DN: c=IN, o=Personal, postalCode=600088, st=Tamil Nadu, serialNumber=D811BCBC1CBB3CBA3DD81D625 7A1CF8A5124DFBDA9C6413927ACD1A52C08D 79B, cn=GOPALAKRISHNAN ANAND BABU Date: 2024.06.18 15:49:32 +05'30'

G Anand Babu Senior Manager – Finance & Company Secretary

au CU,@,A h, C\w,@ M\ron cUT'A Bun, t&, C9Qal,. Sundl-am Fasteners' EV–parts orders top ?4,000 cr

G Balachandar Chennai

==

Sundram Fasteners Ltd, a leading auto-parts manufacturer, is experiencing sign#leant growth in its electric vehicle (W) order bmk. The companY currentjy has around t+m crore worth of EV orders, with more contrxls in the piFwline.

The current { 4 W)crore order tx>ok is to tv fulfilled over the next 5-6 years. The order &mk is exFwac'd to grow as Sundram Fasteners nqotiates with several customers for new IN orders, R Dilip Kumar,Chief Financial OffIcer, Sundram Fasteners, said during the recent earnings call.

Despite some challenges, the transition to the E\' technologv in India is accelerating, fuelled by government sub sidics, increased awareness, and more fn'qu,'nt pnx3uct

launchtI across various categories. Consequentlv, Sundram Fasteners has seen a rcb bust inflow of orders for EV parts.

The Chennaiheadquartered company sup plies components such as fasteners, hot-forged machine parts like tx:vel gears and pinions, batteN caJant cups, and whousNwsofshafts to OEMs in the EV sector. Additionaljy, it is developing an eIcclric water pump.

CAPEX PLANS

According to information culled from earnings tall and other companv sources, to cxccutethc current and future ordc'rs in the LV business, Sundram F&steners is expanding upacity at its faaonc's in Mahindra CitY and Sri City ntur Chennai. For the current year, the company has planned a cupcx of t3\$0-4(Xi crore,

Arathi Krishna, MD, Sundram Fasteners

primarily focused on the fasRt'ncr division to meet export requirements and support the E\' business. In F\'23, it inturn'd a capex of t343 crore, which\us hrUvfundcd through internal accruals without any incremental borro\angs.

The compan\'s managemcnt bc'liars in a gradual transition to 1:A's, starting with intc'rna] cc>mbustion cnuincs

(ICE:) to plug-in h\t>rids, and then to fuljy elearic vehicles. With a growing E\' order tx>ok, Sundnrm Fasteners expcas the In' swmcnt's contribution to total revenues wIll increase from a b)ut 6 per cent now' to ICFIS pr cent in the coming \Pars.

RENEWABLES FOCUS

To sustain growth and prepare for the expected reduction in content per vehicle due to the shift from ICE to n', SurIdram Fasteners

is Rxussing on wind energy and suppl\Ing f&stencrs for industrial and ofFhigh\ray appliutions. The \and potvcr segment hm the potential to double its revenue from the current t2"50 crore to more than tSa) crore in the iicH 1-3 vtws,the management said.

llrus, the companv cxTwas the share of non-aut<3mod\'c ro'cnuctoincrcak' from 30 per cent to 50 per cent over the nexT fIve \'ears.

'RVc brcndlv identifIed three key structurai growth drivers for SFL in the long term – the txginning of execution of ln' order txx)k of t4,CII) crore; ramp up of wind energy pru jed, which has already txt'n staRcH; and hopes of an increase in the order &nk for EV business as the management has txenengagai with multiple customers in domestic and o\'crstns customers." according toaSharekhan report.

'With the advent of alectronic svs[errLS lntoautoFnotl\'c and consumer electronics. systcm cmling and faster heat dissIFlatlon assume pnrnary lmponance. SPL is happy to fonw into a new produa line, copper heatsink. This ha greater Fx> tcntial for all E:vs. aerospace and defence. IT and telecommunications and healthcare. Kumar told brrsilrcsslilrc.