Sona Comstar Q3FY25 earnings: Net profit up 14%, revenue up 12%

Sona BLW Precision Forgings Ltd (Sona Comstar) posted a 14% year-on-year growth in its net profit for the October-December quarter to clock the highest ever-quarterly net profit. Strong growth in the revenue from battery electric vehicles supported the earnings.

The Gurugram-based company manufactures components such as differential assemblies, differential gears, starter motors, BSG systems, EV traction motors, motor control units, alternators, and transmission gears. It is also into radar technology through its subsidiary Novelic.

Sona Comstar’s consolidated net profit for the quarter came in at Rs 151.2 crore, against Rs 132.7 crore in the year-ago quarter. Total revenue increased 12% on year to Rs 868 crore. Apart from revenue from operations, total revenue includes other income of 46.7 crore.

Operating profit, or earnings before interest, taxes, depreciation, and amortization (EBITDA), during the quarter grew by just 3% to Rs 234.2 crore as the operating profit margin contracted to 27% from 29.3% in the year-ago quarter. The company noted that the EBITDA was largely lower due to the impact of the product mix.

"In Q3 FY25, we achieved our highest-ever quarterly net profit, BEV revenue, and BEV revenue share…We have increased our global market share in both differential gears and starter motors in 2024,” Sona Comstar Managing Director and Group CEO Vivek Vikram Singh said.

The revenue from battery electric vehicle programs jumped 48% on year during the quarter to around Rs 330 crore. The share of revenue from battery electric vehicle program also improved to 39% in the quarter. The company has 57 electric vehicle programs from 32 customers. Of that, 15 programs are fully operational, 14 are in the process of ramping up, and the remaining 28 have not yet entered production.

Sona Comstar’s order book stands at Rs 23,200 crore as of December end, compared with Rs 23,100 crore at the end of September. Electric vehicle programs accounts for 76% of the order book.

The company noted that it has received a new order from an existing Indian OEM customer for the supply of differential assemblies for the OEM’s new electric passenger vehicles. This program added Rs 300 crore to our order book and the production is likely to start in the second quarter of the financial year 2027.

Meanwhile, Sona Comstar has invested Rs $4 million in US-based suspension technology ClearMotion Inc in the form of convertible preferred stock.