Sona comstar’s net profit up 47% to Rs 112 crore in Q1FY24

Staff Writer

New Delhi: Auto component maker Sona BLW Precision Forgings  said its consolidated net profit increased by 47 per cent to Rs 112 crore in the June quarter. The company had posted a net profit of Rs 76 crore in the April-June period of the last fiscal.

Vivek Vikram Singh, MD and Group CEO, Sona Comstar, noted that the company has achieved its highest-ever quarterly EBITDA in Q1FY24. “Our revenue grew 24% YoY, driven mainly by the scale-up of the new customer programmes,” he said.

Besides this, a North American new age OEM has awarded the company a programme to supply differential assemblies for their upcoming electric Class 5 truck. This programme has added INR 405 crore to the order book, and production will likely commence in Q4FY25.

Meanwhile, the company has received an order from an Indian two-wheeler OEM to supply hub-wheel traction motors for their upcoming electric scooter model. This programme has added INR 360 crore to the order book. The production is likely to commence in Q4 FY24.

The company has also been awarded a new programme by an Indian OEM of Electric OHVs and 3-wheelers to supply mid-drive traction motors and controllers for their upcoming electric OHV model. This programme has added INR 90 crore to the order book, and production will likely commence in Q4FY24.

In addition, a global OEM of recreational off-highway vehicles has awarded the company a programme to supply final drive differential assemblies. This programme has added INR 430 crore to the order book, and the start of production is likely in Q2FY25. This order win marks Sona Comstar’s entry into a new mobility segment, a communication from the company said.

“We have continued to progress on all our key strategic priorities. With four new BEV programme wins, our net order book grew to INR 22,000 crore, of which EVs contribute 78%,” Singh added.

Besides this, the company signed a technology licensing agreement with Equipmake, a UK-based technology company that has developed high-performance electric powertrains. Under the agreement, Equipmake will license certain patented spoke motor and inverter technology in the power range of 100kW to 440kW to Sona Comstar to manufacture and sell EV powertrains, sub-systems, and components for electric cars, buses, commercial vehicles and off-road vehicles.

Sona Comstar has exclusive rights to sell drive motors, inverters, and drivetrains for the target applications in the licensed territory of India, Thailand, and select South Asian markets. The company will manufacture drive motors, inverters, and drivetrains for the target applications, supply them to its customers in the licensed territories, and Equipmake for other markets.

Singh believes the company has made substantial progress on its technology roadmap by partnering with a road-tested technology partner in Equipmake to enter the high-voltage motor and inverter space.

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