The Indian Auto Components & Equipment sector achieved a record turnover of Rs 6.14 lakh crore (about $74.1 billion) in FY24, growing 10 percent year-on-year, and is projected to reach $80.1 billion in FY25. The industry accounts for 2.3 percent of India’s GDP, provides direct employment to over 1.5 million people, and is expected to touch $200 billion by FY26.
With a market capitalization of Rs 29,519.17 crore, the shares of Sona BLW Precision Forgings Ltd were trading at Rs 475.00 per share, decreasing around 1.35 percent as compared to the previous closing price of Rs 481.50 apiece.
Sona Comstar is evaluating plans to manufacture rare earth magnets in India, crucial for automotive applications. The decision hinges on the forthcoming government incentive scheme promoting domestic production. The company expressed intent to apply once the scheme is launched, aligning its strategy with India’s push for self-reliance in critical technologies and components.
Sona Comstar, India’s leading traction motor manufacturer for EVs, earlier warned that a rare earth magnet shortage could partly disrupt motor production. These magnets are essential components, and limited availability may affect the company’s ability to meet growing demand in the electric vehicle sector.
Rare earth magnets play a vital role not only in EVs but also in ICE vehicles, being integral to speedometers, sensors, and steering systems. Recognizing their industry-wide importance, Sona Comstar is holding off on finalizing its investment and production plans, pending clarity on potential government incentives to support local manufacturing of these critical components.
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Looking forward to the company’s financial performance, revenue decreased by 2 percent from Rs 884 crore in Q4FY24 to Rs 865 crore in Q4FY25. Further, during the same time frame, net profit increased by 10 percent from Rs 148 crore to Rs 164 crore.
The company’s net order book stood at Rs 242 billion at the end of Q4 FY25, up from Rs 232 billion in Q3. During the quarter, Rs 7 billion worth of orders were consumed through matured and ramp-up programs, while Rs 17 billion in new orders were added. The order book represents 6.8 times its FY25 revenue, indicating strong future visibility.
The company’s revenue from Battery EVs has grown significantly, rising from 25 percent in FY22 to 36 percent in FY25, signaling a strong EV transition. Meanwhile, ICE-dependent revenue steadily declined from 18 to 9 percent. The shift highlights a clear strategic pivot toward electric and hybrid powertrains, with ICE becoming a diminishing part of the revenue mix over time.
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
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