Sona BLW Precision Forgings (SONACOMS) Q4 17/18 earnings summary

Executive summary

• FY17/18 standalone sales and other income rose 21.86% to Rs 6,158.51 million; EBITDA increased 57.11% to Rs 1,710.06 million.

• Standalone PAT rose to Rs 859.90 million from Rs 448.70 million; consolidated PAT was Rs 717,415,392, up from Rs 329,791,653.

Financial highlights

• Standalone net revenue from operations was Rs 6,088.61 million versus Rs 5,033.03 million; total revenue including other income was Rs 6,158.51 million versus Rs 5,053.63 million.

• Standalone PBT before exceptional items was Rs 1,305.63 million versus Rs 722.39 million; finance costs fell to Rs 181.05 million from Rs 194.23 million.

• Consolidated revenue from operations was Rs 24,013,803,774 versus Rs 21,431,231,658; PBT before exceptional items was Rs 1,459,487,789 versus Rs 1,022,020,172.

• Consolidated profit before associate loss was Rs 719,586,392 versus Rs 330,811,211; PAT was Rs 717,415,392 versus Rs 329,791,653.

• Exports rose 14.24% to Rs 1,857.24 million; standalone export revenue was Rs 1,857,242,358 versus Rs 1,625,605,788.

Outlook and guidance

• Expansion plans were cited as the reason to retain earnings and recommend no dividend for FY17/18.

• Management expected operating subsidiaries’ financial health to improve in the near future and said efforts were underway to strengthen them.

• R&D priorities include e-axles, differential assemblies, hypoid and helical gears, improved torque capacity, lightweighting, material yield and expanded testing.