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 33% of total revenue.

• Net order book stands at ₹233 billion, with 79% from EV programs; added ₹11 billion in new orders in Q1 FY25.

• ICE-dependent revenue dropped to 9%, reflecting continued diversification towards electrification and technology.

• Off-highway market in the U.S. and Indian EV two-wheeler segment remained weak, impacting differential gear sales.

• Strategic focus remains on electrification, global market significance, and technology-driven growth.

Financial highlights

• EBITDA margin improved to 28.1%, up ~1.2% YoY, mainly due to lower input costs and operating leverage.

• Adjusted EBITDA (excluding ESOP costs) rose 27% to ₹2,590 million; adjusted PAT 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.

• Revenue from BEV has grown 17x over five years, with absolute BEV revenue up 48x.

• Dividend of ₹1.53 per equity share for FY24 was approved.

Outlook and guidance

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

• 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.

• Ongoing investments in technology and product diversification to support future growth.

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