22 Oct , 2024 By : Debdeep Gupta
Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) were off to a solid start on the bourses, rising 3 percent to Rs 650 on October 22 after the company announced it has inaugurated a new plant in Manesar, Haryana, dedicated to its driveline business.
The facility, located in the Industrial Estate at IMT Manesar, is the company's second plant in the region, and production began on the same day, October 21. The new plant will help meet the rising demand for Sona BLW's driveline products, further enhancing the company’s manufacturing capacity, it said in a regulatory filing.
Sona BLW Precision Forgings posted a 26.7 percent year-on-year rise in net profit, reaching Rs 141.9 crore for the quarter ending June 30, 2024, compared to Rs 112 crore in the same period last year, according to a regulatory filing.
The company’s revenue from operations grew 21.8 percent to Rs 891.2 crore, up from Rs 731.4 crore in the year-ago period. At the operating level, EBITDA increased by 23.1 percent to Rs 249.3 crore in the first quarter of FY24, compared to Rs 202.5 crore in the corresponding period of the previous fiscal.
Last month, the company successfully raised Rs 2,400 crore through a Qualified Institutional Placement (QIP) of equity shares. Among the key investors, SBI Mutual Fund secured a quarter of Sona BLW’s equity issue, while ICICI Prudential Fund acquired 8.33 percent of the shares. Sona BLW intends to utilize the funds from the QIP to strengthen its capital structure and support both its organic and inorganic growth strategies.
At about 9:20 am, shares of the company were trading at Rs 645, higher by 2 percent from the last close on the NSE. Sona Blw shares have tanked 15 percent in the past month.
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