Finance Mélange

Sona BLW Precision Forgings Ltd. happily announces Q1 FY22 results

Gurugram, India, August 6th, 2021: 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 30th, 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 30th, 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 30th, 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:
    • 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. 

About Sona BLW Precision Forgings Limited 

Sona BLW Precision Forgings Limited (Sona Comstar) is one of India’s leading automotive technology companies. Founded in 1995, it is headquartered in Gurugram, India and has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Mexico and China.

Sona Comstar is primarily engaged in designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs. Sona Comstar is a leading supplier to the fast-growing global Electric Vehicle (EV) market. The company has strong R&D, engineering and technological capabilities in precision forging, mechanical and electrical systems, as well as base and application software development. It is diversified across geographies, products, vehicle segments and customers. 
Sona Comstar is listed on BSE Ltd (BSE) (Code: SONACOMS/543300) and National Stock Exchange of India Ltd. (NSE) (Symbol: SONACOMS) in India.

Certain statements that may be made or discussed at the conference call may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like Government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Sona BLW Precision Forgings Ltd. will not be in any way responsible, in any manner for any reason whatsoever, for any action taken based on such statements and discussions; and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

This article is shared with Prittle Prattle News in the form of a Press Release.