Sundaram Clayton Limited (SCL), a prominent name in aluminium die-casting components for the automotive industry, reported a noteworthy performance for the financial year 2024-25 (FY25). With a focus on profitability, smart manufacturing, and operational consolidation, the company marked several critical milestones that are set to shape its future growth trajectory.

Strong Financial Performance in FY25

SCL achieved a revenue of ₹2,109.14 crore in FY25, reflecting a marginal increase from ₹2,096.97 crore in FY24. However, profitability saw a major leap:

• Operating EBITDA margin improved to 13.44%, up from 12.78% the previous year.

• Profit Before Tax (PBT) stood at ₹306.08 crore, which includes exceptional gains of ₹196.69 crore.

• Profit After Tax (PAT) reached ₹257.92 crore, showcasing a robust bottom-line performance.

This growth is driven by cost optimization, a leaner operating model, and enhanced efficiencies resulting from structural changes in the company’s manufacturing strategy.

Q4 FY25: Higher Margins Despite Revenue Dip

In the quarter ending March 2025:

• SCL reported quarterly revenue of ₹524.54 crore, compared to ₹532.32 crore in Q4FY24.

• Despite the slight drop in revenue, operating EBITDA margin rose sharply to 16.65%, compared to 11.47% in the corresponding period last year—a 5.18% improvement.

This indicates that the company is generating more profit per unit of revenue, thanks to smart manufacturing practices and a better product mix.

Launch of Smart Mega Casting Facility at TKP, Chennai

One of the most significant achievements this year is the launch of full-scale operations at the Thervoy Kandigai Plant (TKP) in Chennai on 31st January 2025. This state-of-the-art mega die-casting facility is the largest die-casting cluster in India, built to serve the growing global demand for high-precision aluminium components.

Key Features of the TKP Plant:

• Integrates High Pressure, Low Pressure, and Gravity Die Casting cells.

• Includes fully-equipped machining, assembly, and finishing systems under one roof.

• Future-ready for mega presses ranging from 6000T to 9000T to support new-generation vehicle platforms.

• Focused on powertrain, structural, chassis, and lightweighting applications.

What sets this facility apart is its design based on lean, green, and connected principles:

• Robotic manufacturing cells for precision and speed.

• Automated Storage and Retrieval Systems (ASRS) and Autonomous Mobile Robots (AMRs) for efficient, man-less material handling.

• A fully digital manufacturing ecosystem, enhancing productivity and data-driven decision-making.

These features place SCL at the forefront of Industry 4.0 adoption in the Indian auto component space.

Strategic Consolidation of Manufacturing Operations

To optimize operational costs and increase productivity, SCL is consolidating its manufacturing footprint. The company plans to move from four facilities to two major hubs—TKP and Oragadam.

• The Mahindra World City (MWC) operations are being moved to TKP.

• The remaining machinery will soon be shifted to Oragadam, streamlining production into more efficient, centralized locations.

This consolidation is expected to generate long-term cost savings, enhance resource utilization, and improve turnaround times.

Sale of Hosur Unit to Sandhar Ascast

On 26th March 2025, SCL signed a Business Transfer Agreement with Sandhar Ascast Private Limited (SAPL), a wholly owned subsidiary of Sandhar Technologies Limited. The deal involves:

• Sale of as-cast, low-pressure, and low-tonnage aluminium die-casting operations at the Hosur plant.

• Executed on a slump sale basis, treating it as a going concern.

• Includes land, machinery, and associated business operations.

The profit from this transaction has been grouped under exceptional income, significantly contributing to FY25 profitability.

Expanding Footprint in the U.S. Market

SCL has a strong presence in exports, especially catering to North American commercial vehicle manufacturers. In a strategic move to enhance global capabilities, the company:

• Commissioned a 4400-tonne die-casting machine in the United States.

• Commenced supplies from this new capacity, enabling support for diverse product lines and shorter lead times.

• Strengthened its position as a preferred supplier for OEMs in North America.

This move is aligned with the company’s vision to remain globally competitive and cater to rising international demand.

Research and Development Backing the Transformation

SCL’s manufacturing innovation is reinforced by its two major R&D centres:

• One located in Stuttgart, Germany, focusing on advanced engineering and process improvements.

• Another at the IIT Research Park in Chennai, which supports innovation, product development, and lightweighting solutions.

These centres ensure that product quality, manufacturing standards, and technology adoption remain world-class.

Conclusion

Sundaram Clayton's FY25 results underline a strategic shift towards profitability, global competitiveness, and smart manufacturing. With higher margins, robust PAT growth, and industry-leading digital facilities, the company has set a strong foundation for the future.

By consolidating operations, launching India’s largest die-casting facility, and expanding exports, SCL is poised to play a critical role in the evolving automotive component industry, both in India and globally.

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