Sona BLW Precision Forgings Ltd

- Sona Comstar has received board approval for an enabling resolution to raise up to ₹2400 crores. - Fundraising is intended to support potential acquisitions and strategic opportunities such as joint ventures and collaborations. - The company does not currently need much external capital for organic expansion. - The fundraise may involve equity and/or equity convertible securities/instruments. - Details of specific transactions remain confidential. - The company assures that all activities will remain within its defined vision focused on mobility and EPIC mobility. - No immediate fundraising specifics shared, but the approval positions the company to act when acquisition opportunities materialize.

- Sona Comstar has approval to raise up to ₹2400 crores as enabling capital for potential acquisitions and strategic opportunities such as JVs and collaborations. - The company does not currently need much external capital for organic expansion but anticipates the need if acquisitions or strategic deals materialize. - Management emphasizes acquisitions focused on mobility technology within their EPIC mobility theme, particularly for technology-driven companies rather than turnarounds. - Past acquisitions (Comstar and NOVELIC) were done to accelerate capabilities that would take too long to build internally. - The company prioritizes funding innovations and giving acquired businesses freedom with R&D budgets to fail or succeed, emphasizing long-term value creation. - No short-term detailed transaction specifics are disclosed due to confidentiality; the capital raise is enabling in nature to be deployed when necessary.

- Sona Comstar expects continued growth by adding new products, customers, and increasing share of wallet, independent of underlying industry volume growth. - BEV (battery electric vehicle) revenue grew 53% YoY, now constituting 33% of total revenue, signaling strong future growth from electrification. - The EV order book is robust with 27 programs in production and 28 more to ramp up in coming years. - Growth will be driven more by three-wheelers, electric buses, and light commercial vehicles in India, as two-wheeler EV volumes are disappointing. - Plug-in hybrids and BEVs currently provide the highest content value, with BEVs expected to dominate by 2035 and beyond. - Geographic diversification across North America, India, Europe, and Asia supports growth, despite some softness in Europe. - The company is focused on technology innovation and higher voltage/power solutions (e.g., 350V 40kW motors) to access larger value segments. - Order book expansion of ₹11 billion last quarter, reaching ₹233 billion total, underpins medium-term revenue visibility.

- Sona Comstar expects continued growth driven by electrification, with BEV revenue growing 53% YoY and now constituting 33% of total revenue. - Operating leverage and lower input costs have expanded adjusted EBITDA margin by 1.2%, indicating improving profitability. - Profit after tax (adjusted for ESOP cost) grew 29% YoY, supported by higher operating profits. - The company anticipates an average tax rate of 24-25% going forward, normalizing from lower tax adjustments in the prior quarter. - Growth is expected from adding new products, customers, and share of wallet, rather than solely industry volume growth. - Hybrid and plug-in hybrid segments currently yield highest content values but BEVs are viewed as the long-term future. - Europe shows some demand softness, but strong growth in BEV and diversified global footprint support robust revenue and profit expansion. - Order book expanded to ₹233 billion, indicating a strong pipeline to support future earnings and EPS growth.

- Net order book expanded to ₹233 billion as of Q1 FY25. - Added ₹11 billion worth of new orders in the last quarter. - 27 EV programs currently in production: 12 mature and fully ramped up, 15 in various ramp-up stages. - An additional 28 EV programs are not yet in production but expected to start this year or in subsequent years. - The EV portion remains high at 79% of the order book, indicating future business direction. - New wins include a class-5 electric truck driveline program (increasing order value by ₹6.8 billion) and the first order in sensors/software business (ACAM for electric passenger vehicles).