Sona BLW Precision Forgings (SONACOMS) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue rose 26% YoY to INR 26,756m; EBITDA increased 25% to INR 6,958m and reported PAT rose 9% to INR 3,953m. Adjusted PAT grew 24% to INR 3,978m.

• BEV revenue reached INR 6,707m, up 33%, and represented 26% of sales; the net orderbook was INR 215bn, with 77% from EV programmes.

• Growth reflected new-programme launches and ramp-ups despite subdued global light-vehicle sales and inflation, supply-chain and geopolitical pressures.

Financial highlights

• Consolidated revenue from operations was INR 26,756m versus INR 21,306m in FY22; total expenditure increased 26% to INR 21,747m.

• EBITDA was INR 6,958m versus INR 5,591m; adjusted PBT increased 22% to INR 5,124m, while reported PAT was INR 3,953m versus INR 3,615m.

• BEV revenue grew 33% and non-BEV revenue 23% YoY; reported diluted EPS was INR 6.75 versus INR 6.21.

• Adjusted PAT growth reflects adjustments for prior-year exceptional income and one-time tax effects, and FY23 NOVELIC diligence expenses.

Outlook and guidance

• FY24 growth is expected to rely chiefly on orderbook execution and the planned NOVELIC acquisition amid high interest rates, inflation and limited industry tailwinds.

• Targeting over 45% of revenue from BEVs by FY26; the strategy prioritises EV growth, global market share and entry into autonomous-vehicle technologies.

• The Chakan plant's gear capacity is expected to rise from 11.8m to 20.1m by FY25-end.