Sona BLW Precision Forgings (SONACOMS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹8,930 million, up 22% year-over-year, with EBITDA of ₹2,512 million (23% YoY growth) and PAT of ₹1,420 million (27% YoY growth).

• BEV revenue grew 53% YoY, now constituting 33% of total revenue, reflecting a strong shift toward electrification.

• Net order book stands at ₹233 billion, with 79% from EV programs, indicating robust future growth potential.

• ICE-dependent revenue dropped to 9%, with continued diversification towards electrification and power source agnostic products.

• Two new products commercialized and two future products added to the technology roadmap in Q1 FY25.

Financial highlights

• Adjusted EBITDA margin improved by ~1.2% due to lower input costs and operating leverage; adjusted PAT margin up by 1.0%.

• Revenue growth outpaced light vehicle sales in top-3 markets (NA, India, Europe), which grew only 3% YoY.

• Adjusted profit after tax increased 29% to ₹1,480 million.

• Earnings per share (consolidated, basic and diluted) for Q1 FY25 was ₹2.42, up from ₹1.92 in Q1 FY24.

• Dividend of ₹1.53 per equity share for FY24 was approved at the AGM on 28 June 2024.

Outlook and guidance

• Management expects continued growth driven by new program launches, customer additions, and product innovation, rather than underlying industry growth.

• Order book growth and new product launches support a positive outlook for continued revenue and margin expansion.

• Europe is expected to remain soft, with flat performance considered a good outcome; India’s EV two-wheeler market remains challenging.

• No significant delays in order book conversion, except for persistent weakness in the EV two-wheeler segment.

• The company operates in a single reportable segment: Automotive Components.