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Informist, Monday, Oct. 27, 2025

 

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--Sona BLW: Revenue from EV ops fell because of just 1 customer in Jul-Sept 
--CONTEXT: Comments by Sona BLW mgmt in post-earnings analyst concall 
--Sona BLW: Need to diversify to alternative modes of mobility 
--Sona BLW: Need to increase global market footprint 
--Sona BLW: Will pursue opportunities in China with high degree of caution 
--Sona BLW: Will have to scale up railway ops to meet demand 
 

 

By Ashutosh Pati and Anand JC

MUMBAI – Sona BLW Precision Forgings Ltd. Monday said its rare earth–free motors, built using ferrite technology, are heavier than traditional rare earth magnet variants but are more cost-effective and compensate for many of their other shortcomings. Unlike rare earth magnets, ferrite-assisted synchronous reluctance motors do not degrade at high temperatures, the company's management said during a post-earnings conference call with analysts.

 

"...that advantage we have been able to leverage to take care of the power density and therefore the disadvantage in terms of weight increase," the management said. Rare earth magnets have a higher power density. "...overall, in most applications, you can offer this as a comparable product and therefore it can be a good replacement," they said.

 

Although Sona BLW posted its highest-ever quarterly revenue in Jul–Sept, the company's revenue from electric vehicles slumped, mainly because of just one overseas customer, its management said. "...one of our global customers continues to face demand challenges and this is particularly in the sales of one specific model, which has seen a significant drop. This has had a noticeable effect on our EV revenue in both the second quarter as well as the first half of the year," they said.

 

The auto parts maker's management said since the company is a global power in this segment and derives 70% of its revenue from exports, it is focussing on diversifying into alternative mobility solutions and expanding its product portfolios along with its international market footprint. "This is the reason why we expanded into the railway segment. And this is why we've been focusing on expanding our presence in the East, which obviously includes India," they said. The company had completed the INR 16-billion acquisition of Escorts Kubota Ltd.'s railway equipment division in the June quarter.

 

Sona BLW said it has to scale up the railway division to meet the robust demand in the sector. The company currently has an order book of INR 13 billion in its railway business, it said.

 

The company is working on improving its existing product offerings in this segment such as brakes, couplers, and suspension by offering newer varieties. It is also working on adding newer varieties of these products. Further, it is working on newer products, which are still in the early stages of development, and expects to launch these in the next three years. "...we should deliver good growth over the next five years if we are successful in developing and getting approval for the new products," the management said.

 

Sona BLW has put its proposed joint venture with Jinnaite Machinery Co. Ltd. in China in abeyance. Its management said the decision was driven primarily by geopolitical considerations and the need to prioritise other ongoing capital allocation plans. While the company remains open to potential future collaborations with Chinese partners, it said any such opportunities would be approached with a "very high degree of caution."

 

Sona BLW reported a 20% on-year rise in consolidated net profit to INR 1.73 billion for the September quarter, higher than analysts' estimate of INR 1.56 billion. Sequentially, its net profit surged nearly 39%. Its revenue from operations increased over 23% on year to INR 11.38 billion. On Monday, shares of the company closed 1.1% higher at INR 483.85 on the National Stock Exchange.  End

 

Edited by Subhojit Sarkar

 

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