Sona BLW Q3 Results Review - Capabilities Step‐Up Continues: Yes Securities

Yes Securities Report

Sona BLW Precision Forgings Ltd.'s Q3 FY23 results were better as Ebitda/adjusted profit after tax exceeded our estimates by 5%/13% with margins came in at 26.1% (estimate: 25%). This was largely led by decline in raw material inflation.

The key highlight of the quarter was the new order win to supply electronic differential lock with an order size of Rs 33.5 billion to global electric vehicle original equipment manufacturer (as single source). EDL is a differential assembly with the content scope is placed towards higher end of $30‐300/vehicle. It has also added four new EV program including differentials assembly and EDL.

Sona Comstar’s overall orderbook grew to Rs 238 billion in Dec-22 (versus Rs 205 billion as of Sep-22 and Rs 186 billion as of March 2022).

Sona Comstar’s EV revenue mix during nine months-FY23 increased to ~25% (versus ~23% in Sep-22).

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