Sona BLW Precision shares rise 3% on new plant launch in Manesar, Haryana

Shares of Sona BLW Precision Forgings (Sona Comstar) rose nearly 3% to Rs 649.7 on the NSE during Tuesday’s trade, following the announcement of the inauguration and commencement of production at its new plant in Manesar, Haryana. This facility, located at the Industrial Estate in IMT Manesar, is the company’s second plant dedicated to its driveline business in the region.

“We are glad to inform you that the Company has inaugurated its new plant in Manesar (Haryana), having an address at Near Sector 2A, Industrial Estate, IMT Manesar, Gurugram, Haryana, 122050 on 21st October 2024,” the company said in a stock exchange filing.

The new plant will support the growing demand for Sona BLW’s driveline products, further enhancing the company’s production capacity.

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In Q1 FY25, Sona BLW Precision Forgings reported a 26.7% year-on-year (YoY) increase in net profit at Rs 141.9 crore. In the corresponding quarter, the company posted a net profit of Rs 112 crore.The company’s revenue from operations rose 21.8% to Rs 891.2 crore against Rs 731.4 crore in the year-ago period. At the operating level, EBITDA increased 23.1% to Rs 249.3 crore in the first quarter of this fiscal over Rs 202.5 crore in the first quarter of the previous fiscal.

The EBITDA margin stood at 28% in the reporting quarter against 27.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortization.

As of 10:13 am, the stock was trading 0.05% higher at Rs 634.4 on the BSE. The company’s shares declined 2% in 2024 but surged 33% over the past two years, giving it a market capitalization of Rs 39,486 crore.

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