Thread by @ValueEducator

#SonaComstar Q3 2022 ConCall Highlights 🚗🏎

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Numbers Update -

1. This quarter was a flat quarter and decline in EBITDA

2. In Q3 the revenues were up by 1% to 4.94 Bn rupees

3. The Battery electric vehicle revenue was up by 108% at 135 cr

4. Non battery electric revenue was down by 15%, reduction due to decline in car sales

5. EBITDA margins stood at 26.4% (within historical range)

6. PAT was at 86.4 cr up by 4% YoY basis

7. The 9M revenue was 15.81Bn rupees higher than the last years full revenue.

8. 9M EBITDA was up by 14% at 4.24 Bn rupees at 26.8% margins

9. 9M PAT was up by 65% stood at 256 cr

Order Book -

1. The total order book is 2.3 billion dollars, the EV part of the order book increased from 58.5% at 79 billion rupees to 66.4%, 116 billion rupees at the end of Q3.

2. 90% of the order book is passenger vehicles and orders are from outside India.

3. The order book is shaping in such a way that in FY 26 more revenue will be generated from traction motors and active suspension motors than it did from starter motors in FY 21.

Deal Wins -

1. Sona comstar added 4 new programmes in the quarter -
Differential assembly programme for a existing customer in the EV segment
E-axel programme for an Indian three wheeler (New customer)

2. Motor and controller programme from a new Indian three wheeler customer

3. Integrated Motor Controller Module programme (new product) for a European customer for a luxury brand.
This brings a total of 24 programmes across 14 unique customers.

New product -

1. Integrated Motor Controller Module (IMCM)-
Integrated Motor Controller Module goes into the Predictive Active Suspension, sona comstar only makes the motor, controller and the software for it.

2. This motor generates an exact amount of force to tackle the impact of uneven road surfaces.

3. IMCM has a 2million lines of code to it.
IMCM is an expensive system as 4 of these are installed in a vehicle, one of those motors is 4-5 times the price of a starter motor.

This technology will now be used in the luxury segment as it is an expensive technology.

Business highlights -

1. Sona Comstar is an engineering company focusing on R&D and innovation

2. The headwinds in the input cost and the raw material cost were faced during the quarter, and still managed to maintain the margins.

3. Dec 2021 was the lowest point of the chip crisis and from now on the situation is expected to improve gradually.

4. The battery electric vehicle revenue has more than doubled

5. Global sales for passenger vehicles are down in US and EU markets.

6. The merger of Soana BLW and Comstar India came into effect from 28 Jan 2022,this merger does not have any effect on the consolidated statements

7. Sona comstar will be the part of electrification in Indian on the driveline side of it as motors are not yet the the products for PV segment.

8. Put a job requirement of 50 new roles in the last quarter around cyber security, safety, hardware/ software, testing etc.

9. Supply issues were increased due to increase in freight charges and container availability and issue in semiconductor chip shortage

10. The company is in the process of making a Magnet less motor, proof of concept is in process as many challenges are faced while developing, and will notify the investors more in the coming quarters. The tentative schedule for it was 18 months and 6 months are already over.

11. The capex for the year to be 450 cr.

12. Global auto sales declined 2% - 3% but the market in which sona comstar’s customers lies dipped little more.

13. Material prices are being passed to the customer but not all the input costs are being passed.

The capacity utilisation -

1. Differential gears - 80%

2. Differential Assembly - 100%+

3. Motor - 50%

Guidance -

1. Sona comstar to maintain margins between 26%- 28% and PAT margins between 14% - 16%.

2. 2W and 3W EV to contribute around 10% of total revenue in FY 24.