After the company announced it secured a $250 million contract from a leading global automobile manufacturer for supplying sub-assemblies for its electric vehicle (EV) platform, Sundram Fasteners rose 1.2% to Rs 974.60.

The investment in the company of Rs 200 crore supports the new orders under the six-year extended purchase package involving the supply of shaft sub-assemblies and drive gear sub-assemblies. 

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The company will ship the parts from its powertrain divisions at Mahindra World City in Tamil Nadu at Chengalpattu and Tirupati district, Andhra Pradesh at Sri City. 

In India, the deal is one of the largest won by a supplier for this range of products for an EV platform. Annual sales are expected to reach $52 million in 2026, supplying 1.5 million drive-unit subassemblies annually.

The Chennai-based company has produced powder metal components, high-tensile fasteners, hot forged components, cold extruded parts, radiator caps, gear shifters, automotive pumps, couplings, gears, iron powder, tappets, sub-assemblies and powertrain components.

The company’s net profit slipped 5.87% to Rs 115.29 crore on a 12.83% increase in net sales to Rs 1401.65 crore in the July-September quarter of FY23 over the July-September quarter of FY22.