Auto component maker Sona BLW Precision Forgings Ltd (Sona Comstar) expects its annual investments to rise as it scales up operations, with a focus on R&D, capacity expansion and new capabilities. According to Managing Director and Group CEO Vivek Vikram Singh, the company's current annual investment of ₹500-600 crore should increase as it grows over the decade. As reported by PTI, investments will cover multiple areas including R&D, capacity additions, capability additions and new processes, with the company focusing on developing entirely new products.
During the September quarter, the company introduced three new products - a helical limited slip differential for EVs, air springs for railway coaches and rear radar sensors for two-wheelers. According to the company's Q2 results release, these commercialised products demonstrate Sona Comstar's diversified approach across multiple automotive segments and emerging technologies.
The company reported robust financial results for the September quarter, with consolidated profit rising 31% to ₹223 crore from ₹170 crore a year ago. Revenue from operations grew significantly to ₹1,535.84 crore from ₹1,138.29 crore during the July-September period of the last fiscal year. The company secured new orders worth ₹3,600 crore during the quarter, marking its third-best quarter in terms of order bookings, as reported by PTI.
On geographical growth outlook, Singh indicated that India contributes around 50% of the company's business and this share is expected to remain in the 50-55% range as it expands in other markets. The company's battery-electric vehicle (BEV) revenue, excluding hybrids, grew 129% year-on-year in the second quarter and accounted for 51% of its automotive revenue. Singh noted that the pace of electric vehicle adoption in India had been faster than the company's expectations, as reported by PTI.
Regarding supply chain diversification opportunities from global companies moving away from China, Singh emphasized that India could gain significantly if domestic suppliers develop necessary design and manufacturing capabilities. The company is evaluating acquisition opportunities to strengthen its capabilities, including in technology-related areas, though no specific deals are currently reportable. Singh noted there are abundant opportunities and the company is considering M&A very seriously, as reported by PTI.
