Despite a weak market, Sona Comstar’s shares experienced a 5% surge on the BSE today, propelled by an impressive Q2FY24 performance. The S&P BSE Sensex, in contrast, decreased by 1.3%.

The company’s Q2FY24 financials revealed a 35% YoY increase in EBITDA to INR 223 crore and a margin improvement of 300 bps YoY to reach 28.4%. Revenue also demonstrated a significant uptick, climbing by 20% YoY to INR 788 crore.

Light vehicle sales in key markets such as North America, India, and Europe expanded by 14%. Additionally, Sona Comstar’s Profit After Tax (PAT) saw a substantial rise of 34% YoY to INR 124 crore.

As a leading provider of essential systems and components for both electrified and non-electrified powertrain segments, Sona Comstar’s net order book has swelled to INR 22,100 crore. This growth is largely attributed to the securing of two new Battery Electric Vehicle (BEV) program contracts.

The first contract includes supplying rotor-embedded differential sub-assemblies to a North American new-age OEM that produces high-end electric cars. The second involves providing traction motors for electric three-wheelers manufactured by one of India’s largest OEMs.

Adding INR 370 crore to the company’s order book is an order from an Indian OEM of Passenger Vehicles (PVs), Commercial Vehicles (CVs), Off-Highway Vehicles (OHVs), and Electric Vehicles (EVs). This order pertains to mid-drive traction motors for the OEM’s upcoming electric three-wheelers, with production set to commence in Q3FY25.