Sona BLW Precision Forgings (SONACOMS) Q4 20/21 earnings summary

Executive summary

• FY21 was a record year for revenue and adjusted PBT despite COVID-related disruption; EV sales and new programme ramp-ups supported growth.

• Revenue from EVs rose from INR 234 mn to INR 2,057 mn; EVs represented 13.8% of sales of goods and global BEV differential-assembly share reached 8.7%.

Financial highlights

• Consolidated revenue was INR 15,663 mn, up 51% reported; growth was 28% after pro forma adjustment for Comstar’s partial-year inclusion in FY20.

• EBITDA rose 82% to INR 4,410 mn; EBITDA margin improved to 28.2% from 23.3% YoY.

• Adjusted PBT increased 103% to INR 3,139 mn; PAT fell 41% to INR 2,152 mn, reflecting FY20’s INR 2,368 mn exceptional gain and lower tax, plus FY21 IPO expense.

• Operating cash flow was INR 1,427 mn and capex was INR 2,189 mn; consolidated net debt was INR 3,413 mn at 31 March 2021.

Outlook and guidance

• Growth priorities are expanding EV revenue and global share, increasing R&D investment, and developing integrated electric powertrain solutions; no quantified financial guidance was stated.

• The order book comprised 58 programmes for 27 customers, including 15 EV orders from 10 customers; 24 programmes, including 8 EV programmes, were in commercial production.

• Management was cautiously optimistic, citing recovery from the automotive downturn and accelerating electrification, while monitoring pandemic and supply-chain headwinds.