Sona Comstar surges 5% on strong Q2 operational performance

The company's consolidated Ebitda grew 35% YoY at Rs 223 crore; margins improved 300 bps YoY at 28.4%, largely due to the positive impact of product mix.

Shares of Sona BLW Precision Forgings (Sona Comstar) moved higher by 5 per cent to Rs 539.60 on the BSE in Thursday’s intra-day trade in an otherwise weak market after the firm reported healthy operational performance for the September quarter (Q2FY24). In comparison, the S&P BSE Sensex was down 1.3 per cent at 63,216 at 12:16 PM.

The company’s consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 35 per cent year-on-year (YoY) at Rs 223 crore; margins improved 300 bps YoY at 28.4 per cent, largely due to the positive impact of product mix.
Revenue rose 20 per cent YoY at Rs 788 crore, while light vehicle sales in our top-3 markets (North America, India, and Europe) grew by 14 per cent. Profit after tax (PAT) jumped 34 per cent YoY at Rs 124 crore.

Sona Comstar is a leading mobility technology company providing mission-critical systems and components for electrified and non-electrified powertrain segments.

With two new battery electric vehicle (BEV) program wins, our net order book grew to Rs 22,100 crore, of which electric vehicles (EVs) contribute 78 per cent. Last quarter, the company won a new program to supply the rotor-embedded differential sub-assemblies from a North American new-age OEM of high-end electric cars. In addition, the company won a new program to supply traction motors for electric three-wheelers from one of the largest Indian OEMs, the management said.

The company has received an order from an Indian OEM of PVs, CVs, OHVs and EVs to supply mid drive traction motors for their upcoming electric three-wheelers. This program has added Rs 370 crore to the company’s order book. The production is likely to commence in Q3FY25.