Sona BLW Precision Forgings Ltd. announces

 Sona BLW Precision Forgings Ltd. announces Q1 FY22 Results

Revenue grows 226% YoY to Rs. 5,007 million, Revenue share from BEV increases to 19.9%

EBITDA higher by 375% YoY to Rs. 1,387 million, EBITDA Margin at 27.7%

PAT of Rs. 822 million, Annualised Q1 FY22 RoCE of 35.3%

Sona BLW Precision Forgings Ltd. (Sona Comstar), a leading automotive technology company providing mission critical systems and components for electrified and non-electrified powertrain segments, today announced its financial results for the quarter ended June 30^th, 2021.

Key Financial Highlights – Q1 FY22    

·        Revenue of Rs. 5,007 million with 226% YoY growth; 19.9% revenue share from BEV

·        EBITDA of Rs. 1,387 million with 375% YoY growth; EBITDA margin of 27.7% vs. 19.0% in Q1 FY21

·        PAT of Rs. 822 million

·        The net order book* stands at Rs. 140 billion as of June 30^th, 2021

Management Comment

Commenting on the performance, Mr. Vivek Vikram Singh, MD & Group CEO, said: “We are delighted to report a strong performance in our first earnings announcement as a listed entity. Despite headwinds, we have delivered robust revenue growth and best-in-class profitability and return metrics. We continue to make significant progress on our strategic imperatives of increasing electrification, global market share, diversification, and product innovation. Our net order book stands at Rs. 14,000 crores as of June 30^th, 2021 of which 57% is from EV.”

 

Operational Highlights – Q1 FY22

Electrification:

·        BEV Revenue Share: Revenue from Battery EV was Rs. 967 million and contributed 19.9% of total revenue as against 13.8% in FY21.

·        EV programs: The number of awarded programs increased to 17 across 10 different customers.

 

Increasing Global Market Share:

·        Differential Gears: Global market share increased to 6.0% in H1 CY21 from 5.0% in CY20.

·        Starter Motors: Global market share in light vehicles increased to 4.6% in H1 CY21 from 3.0% in CY20.

Product Diversification:

·        Our journey from components to sub-systems and systems continues to progress, as revenue share of differential assemblies increased from 17.6% in FY21 to 23.5% in Q1 FY22.

 

Key Developments:

·        Successful listing on NSE and BSE on June 24, 2021.  

·        Partnership with Israel's IRP Nexus Group Ltd (IRP) for a unique joint development project to develop a magnet-less powertrain, manufacture it and market it globally:

o   Under this project, Sona Comstar and IRP have collaborated to conceive, design, prototype, and manufacture high efficiency, low-cost, magnet-less powertrain (motor + controller) for electric two- and three-wheelers for the global market. IRP will license its technology to Sona Comstar for manufacturing of the system exclusively in India.

Sona Comstar inaugurates state-of-the-art differential assembly

 Sona Comstar inaugurates state-of-the-art  differential assembly manufacturing facility at Manesar

·         Company plans to invest over Rs.370Cr in the new manufacturing facility

·         We expect this to generate direct employment for 720 skilled workers

 

Sona BLW Precision Forgings Ltd. (Sona Comstar), one of India’s leading automotive systems & components manufacturer, today inaugurated a state-of-the-art differential assembly manufacturing plant at Manesar, Haryana.  The plant manufactures Differential Assemblies and e-Drive Modules for its global customers, furthering the vision of ‘Atmanirbhar Bharat’ and ‘Make in India for the World’. 

 

The facility is spread across 5 Acres and is expected to generate direct employment for 720 skilled workers and indirectly create thousands of more downstream jobs.

 

On this occasion, Mr Sunjay Kapur, Chairman, Sona Comstar said, “We are very pleased that our latest manufacturing facility has started its operations. This facility was built with the intention to focus on manufacturing differential assemblies for our EV customers globally. We have used state of the art technology and processes in this plant to meet the stringent quality requirements of our customers.”

 

The new facility is located at Manesar which is a preferred manufacturing destination on the Delhi Mumbai Industrial Corridor (DMIC) and provides seamless connectivity via road and rail with seaports on the western coast.