Sona BLW Precision Forgings Ltd. (Sona Comstar), a prominent automotive technology company, for the quarter to June 30, 2024, made significant growth in revenue and profitability.
The company reported a 22% year-on-year (YoY) increase in revenue, amounting to INR 893 crore, driven largely by the expansion of its electric vehicle (EV) programs. Battery Electric Vehicles (BEV) revenue grew by 53% YoY, now constituting 33% of the total revenue. The company also recorded its highest-ever quarterly figures in revenue, EBITDA, and BEV revenue, with an EBITDA of INR 251 crore and a net profit (PAT) of INR 142 crore, marking a 23% and 27% YoY growth respectively.
Vivek Vikram Singh, MD and Group CEO of Sona Comstar, said, "We achieved our highest-ever quarterly revenue, EBITDA, and BEV revenue in Q1 FY25. Our revenue grew 22% y-o-y, driven mainly by the scale-up of the EV programs. Our BEV revenue grew 53% y-o-y, representing 33% of overall revenues. EBITDA margin improved by 30 bps y-o-y to 28.1%, driving EBITDA growth of 23% and PAT growth of 27%."
"We have continued to progress on all our key strategic priorities. Last quarter, we won our first program for an in-cabin sensing product, ACAM, which gives us the confidence that we are moving swiftly on our long-term strategy of pivoting NOVELIC from an engineering services-led business to a product and semiconductor chip design business. We have additionally made substantial progress on our technology roadmap by winning customer orders for two new products and adding two new products to our development roadmap," he added.
Sona Comstar, for Q1 FY25, made major developments in various areas. A North American new-age Original Equipment Manufacturer (OEM) of electric commercial vehicles awarded the company a contract to supply Intermediate Gears, Input Shafts, and Park Gear for its upcoming electric Class 5 truck. Previously, the company secured an order to supply the Final Drive Differential Assembly for the same program. This order's total value increased by INR 680 crore to INR 1085 crores, with production expected to start in Q4 FY25.
Moreover, Sona Comstar won its inaugural product order in the sensors and software business sector. This order pertains to the supply of ACAM (in-cabin sensors) for electric passenger vehicles from an Asia-based new-age OEM of electric passenger vehicles (EPVs). The program, valued at INR 150 crore, is expected to begin production in Q3 FY27. This milestone aligns with the company’s strategy to transition NOVELIC from an engineering services-driven business to a product and semiconductor chip design enterprise.
In terms of electrification, BEV revenue saw a notable surge to INR 283 crore in Q1 FY25. Sona Comstar included one new program and one new customer in its portfolio during this quarter, increasing the total number of awarded programs to 55 across 31 different customers.
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