Sona BLW Precision Forgings (SONACOMS) Q4 19/20 earnings summary

Executive summary

• FY2020 consolidated total income rose 48.58% to ₹10,437.65 million, driven largely by the Comstar acquisition; standalone total income fell 23.18% amid automotive-market weakness and COVID-19 disruption.

• Consolidated profit for the year increased 112.56% to ₹3,652.86 million, including a ₹2,368.22 million exceptional gain on loss of control of Sona Holding B.V.

Financial highlights

• Standalone profit for the year declined 16.39% to ₹840.79 million; standalone revenue from operations was ₹5,386.91 million versus ₹6,992.20 million in FY2019.

• Consolidated revenue from operations was ₹10,379.82 million and other income ₹57.83 million; FY2019 total income was ₹7,025.01 million.

• Standalone exports were ₹1,627.88 million, down 12.26% YoY; domestic revenue was ₹3,529.31 million.

Outlook and guidance

• Passenger-vehicle and tractor demand showed a strong recovery; expectations were for improved business performance in FY2021.

• Cost-reduction actions continued, while new business and customers were added, particularly through electric-vehicle product development.