Chennai: Automobile parts maker Sundaram Clayton Ltd said on Friday that its third quarter profit dived 97.5%, missing analysts’ estimates, after adjusting for a one-time gain in the year-ago period.
Net profit in the three months ended 31 December 2012 fell to Rs.40 lakh from Rs.15.8 crore in the year-earlier quarter.
The company, which supplies aluminium die castings to the automotive sector, had reported a Rs.18.3 crore one-time gain in the year-ago quarter from the sale of equity shares. Without taking the year-ago exceptional gain into account, the company would have still posted an 84% drop in profit.
The company, part of the $5 billion TVS Group, posted a 4% decline in revenue to Rs.241.2 crore.
Analysts had expected profit of Rs.20.3 crore on revenue of Rs.508 crore, according to a Bloomberg poll.
Auto component companies are facing the heat as passenger car sales have declined in the face of slowing economic growth, and high interest rates and fuel prices.
Shares of the company fell 5.58 % to Rs.335.15 on the BSE while the benchmark Sensex declined by 0.49% to 19,484.77 points.