Sona BLW shares surge 3% on strong Q3

Shares of Sona BLW Precision Forgings Ltd, popularly known as Sona Comstar, surged as many as 3.17% to hit an intraday high of ₹598.25 apiece on the BSE, a day after the automobile component manufacturer reported a 24% year-on-year increase in its net profit to ₹113.6 crore in the December quarter of FY24, as against ₹107.1 crore in the same period last year.

The scrip opened higher at ₹597.75, up 3.08%, as against the previous closing price of ₹579.85. At 1:15 pm, the company's share price was trading 1.70% higher at ₹591.85. This was in line with the broader BSE Sensex, which was trading 170 points or 0.24% higher at 70,537.15. The company’s market capitalisation stood at ₹34,582.47 crore with 52,091 shares exchanging hands on the BSE, as against the two-week average of 0.64 lakh shares. The company hit a 52-week high of ₹670.20 on January 4 this year and a 52-week low of ₹401.10 on March 20 last year.

In the past one month, three months and one year, the counter has given 1.84%, 15.46%, and 36.01%, respectively in returns.

In the October to December period of FY24, the company’s revenue from operations witnessed a growth of 15.8% year-on-year to ₹781.8 crore, as against ₹675.3 crore in the same period last year. Of this, the company’s revenue from battery electric vehicles (BEV) witnessed a growth of 28% YoY to ₹222 crore, thus representing 30% of the total revenue in the December quarter. With the launch of five new BEV program wins, the net order book of the auto ancillary has increased to ₹24,000 crore, which is the highest ever, says the company.

"We delivered our highest quarterly EBITDA, net profit, BEV revenue, BEV revenue share and order book in Q3 FY24. Our BEV revenue was higher by 28% y-o-y, representing 30% of overall revenues," Vivek Vikram Singh, MD & CEO, Sona Comstar.

"With five new BEV program wins, we closed last quarter with an all-time high net order book. Three of the new BEV programs won are for three innovative and unique powertrain solutions, reaffirming our position as the technology leader in our products. From where we stand today and what we see, based on customer schedules and our strong order book, we are certain that electrification will continue to drive strong growth for us in the immediate, medium, and long term," he adds.

Meanwhile, the company’s EBITDA (earnings before interest, tax, depreciation and amortization) jumped by 31.7% to ₹232.5 crore during the quarter under review, as against ₹176.5 crore in the same period last year. The company’s EBITDA margin expanded by 200 basis points (bps) YoY to 29.2% in the December quarter, as against 26.1% in the corresponding period of the previous year.

"EBITDA margin improved by 200 bps y-o-y to 29.2%, driving EBITDA growth of 22% and PAT growth of 24%. We have introduced a new product, an integrated motor controller, that should improve the electric powertrains for E2-wheelers," says Singh.

The auto ancillary expects electrification to drive the company’s immediate, medium and long-term growth.