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Informist, Wednesday, Oct. 23, 2024

MUMBAI - Sona BLW Precision Forgings Ltd. reported a year-on-year rise in its Jul-Sept consolidated net profit, aided by growth in its battery electric vehicles vertical. The company's bottom line and revenue beat the Street's expectations as the order book of the company increased in the latest quarter. Analysts had estimated the company to report a consolidated net profit of INR 1.38 billion and consolidated revenues of INR 8.81 billion for the September quarter.

The company's consolidated net profit rose to INR 1.44 billion in the latest quarter, up 16% from INR 1.24 billion in the year-ago quarter. The consolidated revenue rose 17% on year to INR 9.22 billion in the latest quarter. However, sequentially, the company's consolidated net profit marginally rose 1.4% and revenue was up 3.5%. The average of the analyst's estimates had pegged growth in the company's consolidated net profit and consolidated revenue at 11% on year.

In the September quarter, the company's total expenditure was INR 7.43 billion compared with INR 6.27 billion in the year-ago quarter. Finance costs rose 76% on year to INR 105.65 million. The company's tax outgo for the latest quarter was INR 482.03 million against INR 400.76 million in the year-ago quarter.

The company reported earnings before interest, tax, depreciation, and amortisation of INR 2.55 billion in the September quarter, up 14% on year. The company's EBITDA margin was 27.6% for the quarter.

In Apr-Sept, the company's consolidated net profit was INR 2.86 billion, up 21.2% on year from INR 2.36 billion. The company reported a consolidated revenue of INR 18.13 billion, up 19.4% on year from INR 15.19 billion. The company's EBITDA was INR 5.06 billion, up 19% on year in Apr-Sept. The company's EBITDA margin for Apr-Sept was 27.8%.

During the quarter, the company agreed to acquire the railway equipment division of Escorts Kubota Ltd. for an enterprise value of INR 16 billion, as a going concern, on a slump-sale basis. The railway equipment division of Escorts Kubota is a leading supplier of critical components for railways, such as brakes and suspension systems for various rolling stocks. The railway equipment division reported a revenue of INR 9.5 billion and EBIT of INR 1.79 billion in 2023-24 (Apr-Mar). The railway equipment segment had an EBIT margin of 20.5% in the first quarter of FY25. The company will fund the acquisition through proceeds from qualified institutional placement and internal accruals.

The company's battery electric vehicle segment grew 53% on year to INR 6 billion in Apr-Sept and accounted for 35% of the company's total revenue, Sona BLW said. As of Sept. 30, the company's order book stands at INR 231 billion, down from INR 233 billion a year ago. The company added orders worth INR 12 billion in the latest quarter. On Wednesday, the shares of the company closed at INR 644.10 on the National Stock Exchange, up 1.4%.  End

Edited by Manisha Baxla

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