Sona Comstar Q1 Review - Resilient, Unstoppable: IDBI Capital
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IDBI Capital Report
Sona BLW Precision Forgings Ltd. (Sona Comstar) reported impressive financial performance in Q1 FY22.
Its adjusted profit grew by 3.1% QoQ.
Despite of intense cost pressure, it reported 173 basis points expansion in Ebitda margins to 27.7% which is commendable.
Increased contribution from battery operated electric vehicle segment from 13% in Q4 FY21 to 20% in Q1 FY22 and global market share gains in differential gears and starter motor were the bright spots.
Sona Comstar has as order book of Rs 140 billion which provides strong sales visibility over the next five to seven years.
We have retained our sales and profit after tax estimates for FY22 and FY23 keeping in mind robust financial performance and strong growth outlook.
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