Sona BLW Precision Forgings (SONACOMS) Q4 21/22 earnings summary

Executive summary

• FY22 revenue rose 36% to ₹21,306mn, EBITDA rose 27% to ₹5,591mn, and PAT increased 68% to ₹3,615mn amid a declining global light-vehicle market and supply-chain disruption.

• EV momentum strengthened: BEV revenue reached ₹5,042mn, or 25% of sales, and 62% of the ₹186bn net order book was EV-related.

• FY23 was viewed as challenging yet promising, with inflation and interest rates weighing on the backdrop while electrification and a large EV order book supported growth prospects.

Financial highlights

• Consolidated revenue from operations rose 36% YoY to ₹21,306.4mn; EBITDA increased 27% to ₹5,591.0mn.

• PAT increased 68% to ₹3,615.4mn; excluding the effect of exceptional items, PAT growth was 37%.

• BEV revenue grew 145% to ₹5,042mn; non-BEV revenue increased 20% to ₹16,270mn.

• Operating cash flow was ₹4,445.8mn; cash investment in property, plant, equipment and intangibles was ₹3,472.1mn.

Outlook and guidance

• FY23 outlook was challenging yet promising amid high inflation and rising interest rates; elevated oil prices were expected to reinforce vehicle electrification.

• Semiconductor constraints were expected to ease, supporting an industry recovery; Nomura projected global light-vehicle sales of 85.5mn for CY22.

• EV growth and global market-share gains were identified as strategic growth drivers, supported by 62% EV share of the order book.