Sona BLW Precision Forgings (SONACOMS) Q4 18/19 earnings summary

Executive summary

• FY 2018-19 standalone sales rose 13.54% to ₹6,992.20 million; EBITDA increased 17.48% to ₹2,009.35 million amid slow economic growth.

• Consolidated profit for the year was ₹1,718.50 million, including ₹710.68 million from discontinued operations; consolidated total comprehensive income was ₹1,726.06 million.

Financial highlights

• Standalone profit before tax was ₹1,555.62 million versus ₹1,305.63 million; profit after tax was ₹1,005.65 million versus ₹859.89 million.

• Standalone revenue from operations was ₹6,992.20 million versus ₹6,231.21 million; other income was ₹32.81 million versus ₹28.03 million.

• Consolidated revenue from operations was ₹6,992.20 million; total income was ₹7,025.01 million, versus ₹6,259.23 million in FY 2017-18.

• Standalone export revenue fell 0.42% to ₹1,855.43 million; foreign exchange earnings were ₹1,855.43 million and outgo was ₹411.30 million.

Outlook and guidance

• Management expected the financial health of the legacy overseas operating subsidiaries to improve, while noting their operations remained under stress.

• Overseas liquidity was assessed as adequate for the next two years, conditional on achieving budgeted sales and earnings growth; new customer wins, synergies and efficiency gains were key assumptions.

• Substantial spending on the new Munich site and restructuring was expected to begin in FY 2020-21; the new location had been selected and a long-term lease was under negotiation.