The shares of the automotive component manufacturer gained up to 1 percent after the company signed a memorandum of understanding (MOU) with the NMICPS Technology Innovation Hub.
With a market capitalization of Rs 35,443.84 crore, the shares of Sona BLW Precision Forgings Ltd were trading at Rs 569.00 per share, increasing around 0.57 percent as compared to the previous closing price of Rs 565.75 per share.
Reason for Rise
The shares of the company have seen positive after Sona BLW Precision Forgings Ltd signed a memorandum of understanding (MOU) with the NMICPS Technology Innovation Hub to collaborate on innovative technologies for AGVs, drones, and eVTOLs. Sona Comstar and TIHAN-IITH have signed an MOU to collaborate on Connected, Autonomous, and Electric technologies for AGVs, Drones, and EVTOLs.
Moreover, this collaboration is a huge step forward in R&D for autonomous car technologies. TiHAN-IITH’s expertise in autonomous navigation, together with Sona Comstar’s strength in mobility technology and production, will drive innovation and accelerate the transition to future mobility applications.
Mr Vivek Vikram Singh, MD and Group CEO of Sona Comstar, said, “We are delighted to collaborate with TiHAN-IITH to develop advanced technologies for AGVs, Drones, and EVTOLs. The partnership aligns with our vision statement as we expand into the broader mobility sector and is consistent with our view that the future of mobility will be EPIC.”
Financial conditions
Looking into the company’s financial condition, revenue jumped by 17 percent from Rs 787 crore in Q2FY24 to Rs 922 crore in Q2FY25, however during the same period of time, net profit magnified drastically by 16 percent from Rs 124 crore to Rs 144 crore.
The company’s EBITDA rose by 23%, driven by a 53% year-on-year growth in BEV revenue, which now accounts for 33% of total revenue. Improved margins from operating leverage further amplified growth, resulting in higher profit growth compared to revenue growth.
Technology Roadmap
The company commercialized two new products: park gear for electric commercial vehicles and an in-cabin child presence sensor. Additionally, it added two products to its roadmap, including an integrated motor controller and high-voltage systems, focusing on innovation to strengthen its EV market position.
Order Book
The company’s net order book expanded to ₹233 billion, with 79% derived from EV programs. The ongoing shift toward electrification reduced the revenue share from ICE-dependent programs to single digits, highlighting the company’s strategic move away from internal combustion engine reliance.
Also read…..
Future Growth and Acquisitions
The company approved a fundraising of up to ₹2,400 crores to support potential acquisitions and strategic opportunities in mobility technology. With a focus on mobility-related acquisitions, it anticipates significant growth for NOVELIC, aiming to establish it as a leading global sensing company.
Industry Insights
The company remains optimistic about future growth despite market challenges, focusing on technology development, product innovation, and customer diversification. Its strategic priorities include electrification, new product development, and expanding its customer base to seize emerging opportunities in the EV market for increased profitability.
Company Overview
Sona BLW Precision Forgings Limited is an India-based firm that manufactures precision-forged bevel gears and differential case components for automotive and other applications. The company manufactures differential assemblies, differential gears, and other products.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
