Sona Comstar demonstrated robust performance in FY24 and H1FY25. What key factors have driven this growth, and have any recent capital expenditure, investments, or acquisitions supported this trajectory?
Sona Comstar's continued leadership in the EV sector, with Battery Electric Vehicle (BEV) revenue growing 53 per cent YoY in H1FY25, has been a major growth driver. Our commitment to innovation, technological advancements, and expanding our EV programme portfolio, now at 56 programmes across 32 customers, has solidified our position in this fast-evolving market.
Our focus on operational excellence, product diversification, and a strategic balance in our customer and market mix has also played a critical role. We've significantly reduced reliance on traditional ICE-dependent products, with the share of BEVs in our revenue rising to 35 per cent in H1FY25.
We have agreed to acquire the Railway Equipment Division from Escorts Kubota. Once completed, it will diversify our portfolio and open up significant growth opportunities for us in the railway sector, aligning with our vision to expand into high-growth sectors with advanced engineering and technology-driven solutions. This acquisition will be earnings-accretive from day one.
The EV sector demands heavy investment in R&D. Can you provide insights into Sona Comstar's current R&D budget and future plans to stay ahead in the EV component space?
Sona Comstar has consistently prioritised research and development (R&D) to maintain its leadership in the evolving EV component sector. Recognising the critical role of R&D in sustaining innovation, we set a target to invest roughly 3 per cent to 3.5 per cent of our revenue in R&D. This underscores our commitment to advancing technologies that align with the future of mobility, ensuring we remain at the forefront of the EV component industry.
This story is from the January 25, 2025 edition of BW Businessworld.
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This story is from the January 25, 2025 edition of BW Businessworld.
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