Results     26-Oct-23
Analysis
Sona BLW Precision Forgings
OPM jumped by 324 bps
For the quarter ended sept 2023, consolidated Net sales (including other operating income) of Sona BLW Precision Forgings has increased 20.61% to Rs 787.47 crore compared to quarter ended Sept 2022.  Operating profit margin has jumped from 24.70% to 27.94%, leading to 36.44% rise in operating profit to Rs 219.99 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 47.22% to 45.88%.   Employee cost increased from 6.77% to 6.89%.   Other expenses fell from 21.27% to 19.68%.   

Other income rose 28.96% to Rs 9.44 crore.  PBIDT rose 36.11% to Rs 229.43 crore.  Provision for interest rose 38.89% to Rs 6 crore.  Loan funds rose to Rs 386.22 crore as of 30 September 2023 from Rs 255.38 crore as of 30 September 2022.  Inventories declined from Rs 366.91 crore as of 30 September 2022 to Rs 337.96 crore as of 30 September 2023.  Sundry debtors were higher at Rs 676.02 crore as of 30 September 2023 compared to Rs 539.24 crore as of 30 September 2022.  Cash and bank balance rose to Rs 192.39 crore as of 30 September 2023 from Rs 77.51 crore as of 30 September 2022.  Investments declined from Rs 127.32 crore as of 30 September 2022 to Rs 55.92 crore as of 30 September 2023.  

PBDT rose 36.04% to Rs 223.43 crore.  Provision for depreciation rose 24.44% to Rs 53.41 crore.  Fixed assets increased to Rs 1,710.37 crore as of 30 September 2023 from Rs 937.36 crore as of 30 September 2022.  Intangible assets declined from Rs 656.14 crore to Rs 350.22 crore.  

Profit before tax grew 40.14% to Rs 170.02 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 40.08 crore, compared to Rs 28.77 crore.  Effective tax rate was 24.42% compared to 23.71%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 33.82% to Rs 123.85 crore.  

Equity capital increased from Rs 584.35 crore as of 30 September 2022 to Rs 585.42 crore as of 30 September 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 29.76% as of 30 September 2023 ,compared to 53.59% as of 30 September 2022 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Sona BLW Precision Forgings has increased 22.77% to Rs 1518.85 crore.  

Operating profit margin has jumped from 24.15% to 27.82%, leading to 41.43% rise in operating profit to Rs 422.59 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.59% to 44.86%.   Employee cost decreased from 7.04% to 6.77%.   Other expenses fell from 22.19% to 20.90%.   

Other income rose 17.13% to Rs 15.59 crore.  PBIDT rose 40.40% to Rs 438.18 crore.  Provision for interest rose 57.28% to Rs 11.34 crore.  Loan funds rose to Rs 386.22 crore as of 30 September 2023 from Rs 255.38 crore as of 30 September 2022.  Inventories declined from Rs 366.91 crore as of 30 September 2022 to Rs 337.96 crore as of 30 September 2023.  Sundry debtors were higher at Rs 676.02 crore as of 30 September 2023 compared to Rs 539.24 crore as of 30 September 2022.  Cash and bank balance rose to Rs 192.39 crore as of 30 September 2023 from Rs 77.51 crore as of 30 September 2022.  Investments declined from Rs 127.32 crore as of 30 September 2022 to Rs 55.92 crore as of 30 September 2023.  

PBDT rose 40% to Rs 426.84 crore.  Provision for depreciation rose 25.97% to Rs 104.47 crore.  Fixed assets increased to Rs 1,710.37 crore as of 30 September 2023 from Rs 937.36 crore as of 30 September 2022.  Intangible assets declined from Rs 656.14 crore to Rs 350.22 crore.  

Profit before tax grew 45.24% to Rs 322.37 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 77.55 crore, compared to Rs 53.57 crore.  Effective tax rate was 24.73% compared to 24.13%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 40.08% to Rs 235.88 crore.  

Equity capital increased from Rs 584.35 crore as of 30 September 2022 to Rs 585.42 crore as of 30 September 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 29.76% as of 30 September 2023 ,compared to 53.59% as of 30 September 2022 .  

Cash flow from operating activities increased to Rs 300.23 crore for YTD ended September 2023 from Rs 230.72 crore for YTD ended September 2022.  Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 140.90 crore, compared to Rs 165.82 crore during the YTD ended September 2022.  


Full year results analysis.

Net sales (including other operating income) of Sona BLW Precision Forgings has increased 25.85% to Rs 2655.01 crore.  Operating profit margin has declined from 25.51% to 25.43%, leading to 25.48% rise in operating profit to Rs 675.24 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.94% to 45.11%.   Employee cost decreased from 7.84% to 6.90%.   Other expenses rose from 21.23% to 22.16%.   

Other income fell 21.52% to Rs 32.17 crore.  PBIDT rose 22.15% to Rs 707.41 crore.  Provision for interest fell 7.28% to Rs 16.93 crore.  Loan funds rose to Rs 295.19 crore as of 31 March 2023 from Rs 151.15 crore as of 31 March 2022.  Inventories declined from Rs 363.38 crore as of 31 March 2022 to Rs 322.94 crore as of 31 March 2023.  Sundry debtors were higher at Rs 608.85 crore as of 31 March 2023 compared to Rs 445.19 crore as of 31 March 2022.  Cash and bank balance declined from Rs 77.25 crore as of 31 March 2022 to Rs 69.84 crore as of 31 March 2023.  Investments rose to Rs 232.57 crore as of 31 March 2023 from Rs 6.53 crore as of 31 March 2022 .  

PBDT rose 23.11% to Rs 690.48 crore.  Provision for depreciation rose 25.38% to Rs 178 crore.  Fixed assets increased to Rs 1,502.94 crore as of 31 March 2023 from Rs 860.19 crore as of 31 March 2022.  Intangible assets declined from Rs 671.32 crore to Rs 175.81 crore.  

Profit before tax grew 22.34% to Rs 512.48 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 113.81 crore, compared to Rs 70.63 crore.  Effective tax rate was 22.35% compared to 16.34%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 9.34% to Rs 395.30 crore.  

Equity capital increased from Rs 584.35 crore as of 31 March 2022 to Rs 585.41 crore as of 31 March 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 33.00% as of 31 March 2023 ,compared to 67.18% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 533.29 crore for year ended March 2023 from Rs 444.58 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 335.24 crore, compared to Rs 347.21 crore during the year ended March 2022.  

Other Highlights

Board approved Investments in captive solar power plant, through incorporation of one or more special purpose vehicle (SPV), as may be deemed appropriate. The SPV will be funded partly by equity and partly by debt capital. The Company will Invest Rs 75 million approx. for acquiring 26% in the form of the equity share capital of the SPV and remaining 74% of the equity share capital will be acquired by the Clean Max Enviro Energy Solutions.

In Q2 FY24, net order book increased to Rs 22,100 crore. EVs programs contribute 78% to the net order book.

Revenue from Battery EV grew 33% YoY to Rs 391 crore in H1 FY24 and contributed 27% to total revenue.

Company added six new programs and two new customers in H1 FY24.

In Q2 FY24, company received an order from an Indian OEM of PVs, CVs, OHVs and EVs to supply mid-drive traction motors for their upcoming electric three-wheelers. This program has added Rs 370 crore to its order book. The production is likely to commence in Q3 FY25.

On September 4, 2023, Sona Comstar completed the acquisition of a 54% equity stake in NOVELIC, a leading provider of mmWave radar sensors, perception solutions and full-stack embedded systems. With this acquisition, the company has added a third pillar of growth in "Sensors and Software".

In H1 FY24, North America contributed 40% to total revenue, India 30%, Europe 23%, Asia 6% and ROW 1%.

In H1 FY24, PV contributed 70% to total revenue, CV 15%, OHV 10% and E2W/E3W 5%.


Management Comments :
Mr Vivek Vikram Singh, MD & Group CEO, commented: "We have made a significant change to our vision statement, widening our ambit to the broader mobility landscape from automotive. This expanded ambition will guide all our strategic choices hereon, beginning first with our product and technology roadmap. We have revamped our product and technology roadmap to reflect our plans to develop products for a mobility future that is EPIC - Electric, Personalised, Intelligent and Connected. We have added seven new products to our roadmap across our three business divisions. In terms of financials, we achieved our highest revenue, EBITDA and net profit. BEV revenue grew 58% y-o-y to Rs 207 crores, representing 27% of total revenue. EBITDA margin improved by 300 bps y-o-y to 28.2%, driving EBITDA growth of 35% and PAT growth of 34%. We continue to progress on all our key strategic priorities. With two new BEV program wins, our net order book grew to Rs. 221bn, of which EVs contribute 78%. Last quarter, we won a new program to supply the rotor-embedded differential sub-assemblies from a North American new-age OEM of high-end electric cars. In addition, we won a new program to supply traction motors for electric three-wheelers from one of the largest Indian OEMs."



Sona BLW Precision Forgings : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202309202209Var.(%)202309202209Var.(%)202303202203Var.(%)
Net Sales (including other operating income)787.47652.9120.611,518.851,237.1622.772,655.012,109.6825.85
OPM (%)27.9424.70324 bps27.8224.15367 bps25.4325.51-8 bps
OP219.99161.2436.44422.59298.7941.43675.24538.1425.48
Other Inc.9.447.3228.9615.5913.3117.1332.1740.99-21.52
PBIDT229.43168.5636.11438.18312.1040.40707.41579.1322.15
Interest6.004.3238.8911.347.2157.2816.9318.26-7.28
PBDT223.43164.2436.04426.84304.8940.00690.48560.8723.11
Depreciation53.4142.9224.44104.4782.9325.97178141.9725.38
PBT170.02121.3240.14322.37221.9645.24512.48418.922.34
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO170.02121.3240.14322.37221.9645.24512.48418.922.34
EO Income-5.870--8.720--3.3713.27PL
PBT after EO164.15121.3235.30313.65221.9641.31509.11432.1717.80
Taxation40.0828.7739.3177.5553.5744.76113.8170.6361.14
PAT124.0792.5534.06236.1168.3940.21395.3361.549.34
Minority Interest (MI)0.220-0.220-00-
Net profit123.8592.5533.82235.88168.3940.08395.3361.549.34
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations123.8592.5533.82235.88168.3940.08395.3361.549.34
EPS (Rs)*2.191.5838.614.142.8843.976.805.9913.55
* EPS is on current equity of Rs 585.42 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


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