Strong Order Book To Shield From Impact of Global Slowdown, Says Sona Comstar CFO

The automotive technology firm Sona Comstar, or Sona BLW Precision Forgings Ltd., expects its robust order book to protect it from the impact of a looming global economic recession.

The company has a significant order book worth Rs 20,500 crore, 68% of which is in the electric vehicle segment, making it a favourite among investors since its listing last year.

The Gurugram-based company, which manufactures driveline and motors for global automakers, counts North America and Europe as crucial markets along with India.

The company reported its highest-ever quarterly revenue, net profit and Ebitda margin in the quarter ended September. Its revenue rose 13% to Rs 653 crore year-on-year, with profit rising 5% to Rs 92.5 crore, according to an exchange filing. Ebitda margin remained flat at 25%.

Rohit Nanda, chief financial officer at Sona Comstar, spoke to BQ Prime on the risk from recession and the need for capacity expansion.