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NEW DELHI : Homegrown electric automotive systems and parts maker Sona BLW Precision Forgings Ltd (Sona Comstar) aims to double the share of its global electric vehicle business to 45%-50% of revenue by 2025, said a senior company executive.

The company currently earns about 25% of revenue from supplies to battery electric vehicle (BEV) makers in the key markets of Europe, North America, China and India.

Sona Comstar posted a revenue of 657 crore in the September quarter, up 12% from the year earlier, including a 6% rise in revenue for its BEV business at 131 crore. Net profit rose 5% from a year earlier to 93 crore during the quarter. Earnings before interest, taxes, depreciation and amortization (Ebitda) stood at 166 crore, with an Ebitda margin of 25.2%.

However, with a large footprint in Europe, which is facing an economic slowdown and, China, which is facing continued uncertainty due to covid, business for diversified auto parts makers such as Sona Comstar could suffer near-term headwinds.

“Europe is our third-largest market and the macro headwinds there will impact our business in the short term. China is uncertain for the foreseeable future. However, our two largest markets, India and the US, are more than making up for the softer demand in Europe," said Vivek Vikram Singh, chief executive, Sona Comstar.

“We are banking on the EV business, which is on an upward trajectory globally, and region-wise, we are a well-diversified company. So, the sales slowdown in one market will not alter our growth trajectory. Overall, I am optimistic that we will register stronger growth than the industry as we have been doing. While the industry growth has remained somewhat flat, our order book has grown," he said.

Shares of Sona Comstar closed 1.12% lower on Friday at 462 apiece on Friday underperforming a flat Mumbai market. After more than doubling from its listing price of 302 apiece to 700, the stock has tanked nearly 40% in the past 16 months despite brokerages extolling confidence on the company’s long-term prospects.

“What was in our hands was to set up the company’s valuation for the IPO and fixing the issue price at 291 apiece. We had committed to growth and we have delivered. What happens beyond this, to the stock price movement, is not something that can be determined by a company. As management, we can only keep focusing on building and growing the business," said Singh.

“Q2 FY23 was the best quarter in the company’s history as we reported the highest quarterly revenue, profits and Ebitda . We have also introduced four new products since our IPO in 2021, including the Spiral Bevel Gear in the previous quarter. Our net order book has grown from 13,600 crore to 20,500 crore in the last 12 months. Our strategic plans are oriented towards a 10-year timeframe, and it has so far delivered strong results," he added.

“We understand that the stock price is very important for investors, and we are committed to creating value for shareholders. Pressure is always a privilege for us, and we believe that by pursuing our strategic business priorities we will be able to create value for customers as well as other stakeholders in the long run," he added.

ABOUT THE AUTHOR
Alisha Sachdev
Alisha Sachdev is an assistant editor with Mint based in Delhi. She reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies. She also focusses on developing multimedia properties for Mint and currently hosts the 'In A Minute' series and the Mint Primer podcast. Previously, she has worked with CNBC-TV18 and NDTV.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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