Don’t miss the latest developments in business and finance.

Sona Comstar rises after decent Q2 performance; order book at Rs 20,500 crore

Image
Capital Market
Last Updated : Oct 31 2022 | 11:16 AM IST

Sona BLW Precision Forgings advanced 1.44% to Rs 471.25 after the company's net profit rose 5% to Rs 92.5 crore in Q2 FY23 from Rs 88.2 crore in Q2 FY22.

Revenue in the second quarter improved by 12% YoY to Rs 657.4 crore.

Battery Electric Vehicles (BEV) revenue, at Rs 131 crore, was higher by 6% YoY and constituted 21% of total revenue. Non-BEV revenue stood at Rs 526.4 crore, up 14% YoY. Light vehicle sales in the company's top-3 markets (North America, India, and Europe) grew by only 4% during the period under review.

While EBITDA improved by 7% YoY to Rs 165.7 crore, EBITDA margin declined by 1200 bps to 25.2% in Q2 FY23 over Q2 FY22.

The company said that it has added seven new programs and four new customers in H1 FY23. The number of awarded programs increased to 37 across 23 different customers.

Sona Comstar said that it is shifting operations of its existing plant in Bhosari, Pune, to a new and larger facility in Chakan, Pune. The new facility, with an area of 10 acres compared to the older plant area of 1.12 acres, will allow the company to scale-up capacities to support the execution of a growing order book in the driveline business. There will not be any disruption in the operations or supplies to customers due to this shifting of operations.

Vivek Vikram Singh, MD & Group CEO, said: "Despite the macro headwinds and high material prices, we delivered our highest quarterly revenue, EBITDA and net profit in Q2 FY23, demonstrating our solid, resilient, diversified and low fixed cost business model.

More From This Section

Our revenue grew 12% y-o-y in the second quarter, ahead of the light vehicle sales growth in our key markets, driven by the scale-up of revenues from new programs. Despite the high material prices, the EBITDA margin improved q-o-q to 25.2%.

We continue to progress on our key strategic priorities. Our net order book remains strong at Rs 20,500 crore, of which EVs now contribute more than two-thirds.

We continue to direct our R&D efforts towards creating ground-breaking products for our customers. Last quarter, we developed and commercialized net-formed spiral bevel gears, perhaps for the first time in the world."

Sona BLW Precision Forgings (Sona Comstar) is one of the world's leading automotive technology companies. The company has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Mexico and China. It is primarily engaged in designing, manufacturing and supplying highly engineered, mission-critical automotive systems and components to automotive OEMs.

Powered by Capital Market - Live News

Also Read

First Published: Oct 31 2022 | 10:57 AM IST

Next Story