Sona BLW Precision Forgings Share Price

Sona BLW Precision Forging is a leading automotive technology company in India delving into both precision forging and electrical vehicle component segments.

The company ranked among the top ten global players in the differential bevel gear market in 2020. It cornered nearly 5% of the global business for differential bevel gears, and 3% for starter motors and 8.7% for BEV differential assemblies in 2020.

From its manufacturing and assembly facilities, it caters to six out of the world’s 10 leading global passenger vehicle original equipment manufacturers (OEMs), three of the ten leading global commercial vehicle OEMs and seven of the top eight global tractor OEMs by volume.

The company's journey began In 1995 with the incorporation of Sona Okegawa Precision Forgings Ltd – a 75:25 joint venture between the Sona Group and Mitsubishi Materials, a pioneer in the warm forged near net-shaped gears manufacturing technology.

In 1998, the company began production of differential bevel gears at its first plant in Gurugram, Haryana. The next year it launched a manufacturing plant in Chennai, Tamil Nadu.

In 2005, the company established a manufacturing plant in Pune, in which Sona Autocomp Holding Private Limited became a majority shareholder.

The company took over multinational engineering firm Thyssenkrupp’s precision forging business in 2008, its first tie-up with a top international brand.

In 2013, the company was rechristened as Sona BLW Precision Forgings Limited and started a final assembly and finishing plant in Kansas, United States.

In 2013, the company was rechristened as Sona BLW Precision Forgings Limited and started a final assembly and finishing plant in Kansas, United States.

Within three years, the company launched the final assembly and finishing plant in China and JM Financial Trustee became an investor.

In 2017, it opened a final assembly and finishing plant in the North American nation Mexico.

In 2019, Sona BLW acquired Comstar Entities, adopted “Sona Comstar” as the brand name, and operations commenced at its new differential assembly plant located in Manesar, Haryana.

The company was listed on the Indian Stock Exchanges in 2021. Sona BLW’s market capitalisation stood at over ₹ 37,700 crore as of December 29, 2023. Sona BLW share price has gained more than 54% in the last one year.

Sona BLW Precision Forging business operations

Sona BLW Precision Forging owns and operates nine manufacturing and assembly facilities – six of them in India, and the other three in China, Mexico and the US. The Indian facilities are manufacturing units and the overseas facilities function as satellite final assembly and finishing centres.

The plants in Chennai, China, Mexico and US churn out electrical business products, while the remaining five units in India produce driveline business products.

The company has come up with a new business vertical - sensors and software. It has three engineering capability centres. The company also has four research and development centres in India and Serbia.

The company designs and produces highly engineered critical automotive systems and parts including differential assemblies and gears, besides conventional and micro-hybrid starter motors. It also designs and manufactures BSG systems, EV traction motors and motor control units to automobile original equipment makers in US, Europe, India and China for both electrified and non-electrified powertrain categories.

Financial highlights

• The company’s revenue surged 26% to ₹2675.6 in FY23 compared to ₹2130.6 crore in FY22.
• Its EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to ₹695.8 crore in FY23 from ₹559.1 crore in FY22, representing a year-on-year growth of 24.45%
• EBITDA margin stood at 26% in FY23 compared to 26.2% in FY22.
• Profit after tax (PAT) increased 9.3% YoY to ₹395.3 crore in FY23 from ₹361.5 crore in FY22.
• The company's earnings per share (EPS) stood at ₹6.76 in FY23 as against ₹6.22 in FY22.
• The company’s total orderbook stood at ₹21,500 crore in FY23.