Sona Comstar posts highest quarterly revenue and profit in Q2 on strong order pipeline and EV focus | The Financial Express

Sona Comstar posts highest quarterly revenue and profit in Q2 on strong order pipeline and EV focus

The company’s net order book remained strong at Rs 20,500 crore, of which EVs now contribute more than two-thirds.

Sona Comstar posts highest quarterly revenue and profit in Q2 on strong order pipeline and EV focus

Sona BLW Precision Forgings (Sona Comstar), a leading automotive technology company providing mission-critical systems and components for electrified and non-electrified powertrain segments posted revenue of Rs 657 crore in Q2, up 12% YoY and profit after tax of Rs 93 crore. For the second quarter, the company recorded EBITDA of Rs 166 crore, EBITDA margin of 25.2% driven by a strong order pipeline, especially in the EV segment.

Vivek Vikram Singh, MD & Group CEO, Sona Comstar said: “Despite the macro headwinds and high material prices, we delivered our highest quarterly revenue, EBITDA and net profit in Q2 FY2023, demonstrating our solid, resilient, diversified and low fixed cost business model. 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.”

The company’s net order book remained 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 commercialised net-formed spiral bevel gears, perhaps for the first time in the world,” added Singh.

Sona Comstar says it has been awarded a new program from an Indian OEM  to supply differential assemblies for their upcoming BEV (battery electric vehicle) models. The program’s start of production is in FY2024.

The tier 1 supplier added 7 new program and 4 new customers in the first half of FY2023, which takes the number of awarded programs to 37 across 27 different customers. In fact, its product portfolio for electric vehicles constituted 25 percent of its total revenue (Rs 294 crore, up 33% YoY) in H1 FY2023.

Furthermore, it has added a new product to its portfolio – Spiral Bevel Gear, which makes it one of the first companies globally to manufacture and commercialise net-formed spiral bevel gears, traditionally manufactured by cutting the gear teeth. This will be supplied to a global OEM of farm equipment.

The company also announced that it is shifting operations from its existing plant in Bhosari, Pune, to a new and larger facility in Chakan, Pune. The new facility is spread across 10 acre compared to the older plant area of 1.12 acre, will allow it to scale-up capacities to support the execution of a growing order book in the driveline business. 

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First published on: 28-10-2022 at 19:29 IST