Sona BLW Precision Forgings Ltd. announces Q4 FY23 Results

Gurugram, India, October 26, 2023: Sona BLW Precision Forgings Ltd. (Sona Comstar), a leading mobility technology company providing mission-critical systems and components for electrified and non-electrified powertrain segments, today announced its financial results for the quarter and half year ended September 30, 2023.

Key Financial Highlights – Q2 FY24
· Revenue of Rs. 791 crores with 20% YoY growth

· Revenue share from Battery Electric Vehicles (BEV) at 27%, BEV revenue growth of 58% YoY

· EBITDA of Rs. 223 crores with a margin of 28.2% and 35% YoY growth

· PAT of Rs. 124 crores with a net profit margin of 15.7% and 34% YoY growth

· Adjusted PAT (before exceptional expenses) grew 39% YoY to Rs. 128 crores with a margin of 16.2%

· EV programs contribute 78% to the net order book* of Rs. 22,100 crores as of September 30, 2023

Key Financial Highlights – H1 FY24
· Revenue of Rs. 1,523 crores with 22% YoY growth

· Revenue share from Battery Electric Vehicles (BEV) at 27%, BEV revenue growth of 33% YoY

· EBITDA of Rs. 427 crores with an EBITDA margin of 28.0% and 38% YoY growth

· PAT of Rs. 236 crores with a net profit margin of 15.5% and 40% YoY growth

· Adjusted PAT (before exceptional expenses) grew 44% YoY to Rs. 242 crores with a margin of 15.9%

Management Comment
Mr Vivek Vikram Singh, MD & Group CEO, commented: “We have made a significant change to our vision statement, widening our ambit to the broader mobility landscape from automotive. This expanded ambition will guide all our strategic choices hereon, beginning first with our product and technology roadmap. We have revamped our product and technology roadmap to reflect our plans to develop products for a mobility future that is EPIC – Electric, Personalised, Intelligent and Connected. We have added seven new products to our roadmap across our three business divisions. In terms of financials, we achieved our highest revenue, EBITDA and net profit. BEV revenue grew 58% y-o-y to Rs 207 crores, representing 27% of total revenue. EBITDA margin improved by 300 bps y-o-y to 28.2%, driving EBITDA growth of 35% and PAT growth of 34%. We continue to progress on all our key strategic priorities. With two new BEV program wins, our net order book grew to Rs. 221bn, of which EVs contribute 78%. Last quarter, we won a new program to supply the rotor-embed differential sub-assemblies from a North American new-age OEM of high-end electric cars. In addition, we won a new program to supply traction motors for electric three-wheelers from one of the largest Indian OEMs.”

Operational Highlights – Q2 FY24 and H1 FY24
Key Developments:
· A North American New Age OEM of electric cars has awarded the company a program to supply Rotor embedded differential sub-assemblies for their high-performance electric car. This program has added Rs 170 crores to our order book, and production will likely commence in Q2 FY25.

· The company has received an order from an Indian OEM of PVs, CVs, OHVs and EVs to supply mid- drive traction motors for their upcoming electric three-wheelers. This program has added Rs 370 crores to our order book. The production is likely to commence in Q3 FY25.

Electrification:
· BEV Revenue Share: Revenue from Battery EV grew 33% YoY Rs. 391 crores in H1 FY24 and contributed 27% of total revenue.

· EV programs: we added six new programs and two new customers in H1 FY24. The number of awarded programs increased to 48 across 28 different customers.

Other development:
· On September 4, 2023, Sona Comstar completed the acquisition of a 54% equity stake in NOVELIC, a leading provider of mmWave radar sensors, perception solutions and full-stack embedded systems. With this acquisition, the company has added a third pillar of growth in “Sensors and Software”. NOVELIC is vertically integrated across the value chain from machine learning and perception software to hardware and chip design; its partners include global automotive OEMs, autonomous vehicle makers, Tier-1s and chip manufacturers.