Sona BLW Precision Forgings (Sona Comstar), a leading automotive technology supplier has announced its plans to invest Rs 99.7 crore towards expanding the manufacturing capacity of EV traction motors from 400,000 to 600,000 units and to add a new capacity of 500,000 units of PCB Assembly by FY2025 at its Chennai facility.
What’s interesting to note is that this expansion comes at a time when the capacity utilisation was just 37 percent as on March 31, 2023, showcasing the future potential the company sees.
The company has also announced its financial performance for Q1 FY2024, with revenue of Rs 732 crore, up 24 percent YoY, EBITDA growth of 43 percent at Rs 203 crore with a margin of 27.8 percent. The net profit came at Rs 112 crore, up 48 percent.
New order wins sees 78% contribution from EVs
In fact, the company’s four-pronged strategy of electrification, exports, diversification and technology has started giving smart returns. During the period the revenue from electric vehicles grew by 13 percent, bringing the contribution to 26 percent. As of June 30, EVs programs contribute 78 percent to the net order book of Rs. 22,000 crore.
Vivek Vikram Singh, MD & Group CEO, Sona Comstar said: “The reduction in FAME II subsidies has resulted in lower production by the electric two-wheelers industry, thus impacting our traction motor sales. Despite this, our BEV revenue grew 13 percent YoY, representing 26 percent of overall revenue.”
“With four new BEV program wins, our net order book grew to Rs 22,000 crore, of which EVs contribute 78 percent. Last quarter, we won a new program to supply the hub-wheel traction motor for electric scooters from an Indian OEM of electric and ICE two-wheelers. In addition, we won a new program to supply the differential assembly for electric Class 5 trucks from a North American OEM of electric CVs.”
“We entered a new mobility segment by winning a new program from a global OEM to supply final drive differential assemblies for recreational off-highway vehicles (OHVs). We have made substantial progress on our technology roadmap by partnering with a road-tested technology partner in Equipmake to enter the high-voltage motor and inverter space,” he concluded.
