Shares of Sona BLW Precision Forgings declined more than 3% in trade following the announcement of its Q3 results, as the market reacted to pressure on margins and a marginal decline in net profit despite strong revenue growth.
For the quarter, the company reported a net profit of ₹150.7 crore, down 0.3% year-on-year compared to ₹151.1 crore in the same period last year. The slight decline in profit came even as revenue rose sharply. Revenue increased 38.2% year-on-year to ₹1,199 crore, up from ₹867.9 crore, reflecting higher sales volumes during the quarter.
EBITDA for the quarter stood at ₹295.4 crore, registering a 26% year-on-year increase from ₹234.4 crore. However, EBITDA margin declined to 24.6% compared to 27% in the year-ago quarter, indicating margin compression. The contraction in margins was one of the key factors influencing the stock’s negative reaction.
Other income declined significantly on a year-on-year basis, falling to ₹17 crore from ₹47 crore. In addition, the company reported a labour code-related impact of ₹40 crore during the quarter, which also affected overall profitability.
