Rs 22,000 crore order book: This auto ancillary stock reported its highest-ever EBITDA in Q1FY24!

Notably, Electric Vehicle (EV) programs significantly contributed to 78 per cent of the net order book, which reached Rs 22,000 crore as of June 30, 2023

Sona BLW Precision Forgings Limited is one of the world's leading automotive technology companies. Founded in 1995, it is headquartered in Gurugram, India and has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Mexico, and China.

In Q1FY24, the company achieved a revenue of Rs 732 crore, showing a significant Year-over-Year (YoY) growth of 24 per cent. The revenue share from Battery Electric Vehicles (BEV) stood at 26 per cent, with BEV revenue experiencing a YoY growth of 13 per cent. The EBITDA level of the company reached Rs 203 crore, boasting a margin of 27.8 per cent and a remarkable YoY growth of 43 per cent.

The Profit After Tax (PAT) amounted to Rs 112 crore, reflecting a net profit margin of 15.3 per cent and an impressive YoY growth of 48 per cent. Notably, Electric Vehicle (EV) programs significantly contributed to 78 per cent of the net order book, which reached Rs 22,000 crore as of June 30, 2023.

The company reported its highest-ever quarterly EBITDA during Q1 FY24. The revenue experienced a notable 24 per cent year-on-year growth, primarily attributed to the successful scale-up of new customer programs. However, the reduction in FAME-II subsidies had an impact on the electric two-wheelers industry, leading to lower production in traction motor sales, which also affected the company.

During the last quarter, the company secured a contract to supply hub-wheel traction motors for electric scooters to an Indian OEM involved in Electric and ICE two-wheeler manufacturing. Additionally, it secured another contract to supply differential assemblies for electric Class 5 trucks from a North American OEM dealing with electric Commercial Vehicles (CVs). Moreover, the company successfully entered a new mobility segment by securing a program from a global OEM to supply final drive differential assemblies for recreational off-highway vehicles (OHVs).

Demonstrating its commitment to advancing its technology roadmap, the company partnered with Equipmake, a road-tested technology partner, to make significant strides in the high-voltage motor and inverter space.

The stock has witnessed significant buying activity as it has surged more than 30 per cent on YTD basis. Keep a close eye on this trending stock.

Disclaimer: The article is for informational purposes only and not investment advice.