The shares of Auto Ancillaries Company, specializing in engaged in the manufacturing and assembling of automotive components for the automotive industry in India, jumped 2 percent upon signing the agreement to acquire Sundaram-Clayton’s Aluminum Die Casting Business for Rs. 163 crores.
Price Action
With a market capitalization of Rs. 2,320.35 crores on Thursday, the shares of Sandhar Technologies Limited jumped upto 2.04 percent, making a High of Rs. 393.40 per share compared to its previous closing price of Rs. 385.50 per share.
What Happened
Sandhar Technologies’ wholly owned subsidiary, Sandhar Ascast, has entered into a Business Transfer Agreement with Sundaram-Clayton to acquire its High-Pressure and Low-Pressure Aluminium Die Casting Business at the Hosur plant.
The acquisition, valued at Rs. 163 crores, is being conducted by Sandhar Ascast, a wholly owned subsidiary. The transaction is expected to be completed by March 31, 2025. The target business, part of the auto component industry, had a turnover of Rs. 368.99 crores in FY 2022-23 and Rs. 357.1 crores in FY 2023-24.
About the Company
Sandhar Technologies Limited is an Indian company specializing in the manufacturing of auto components and systems, including products for the automotive and non-automotive sectors. It offers a wide range of solutions in areas like lighting, electrical, safety, and casting. The company operates globally, serving major OEMs (Original Equipment Manufacturers).
Revenue Breakup (Product-Wise)
For Q3 FY25, Sandhar Technologies’ revenue distribution by product was as follows: Locking Systems contributed 19 percent, Vision Systems 5.5 percent, Cabins & Fabrication 15.1 percent, Sheet Metal 14.1 percent, ADC Overseas 11 percent, ADC Domestic 12.8 percent, Assemblies 11.4 percent, and Others 11.1 percent.
Financials
The company’s revenue rose by 9.27 percent from Rs. 891.79 crore to Rs. 974.44 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 25.23 crore to Rs. 29.95 crore during the same period.
Written by Sridhar J
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