Sona BLW Precision Forgings, known as Sona Comstar, saw a 5 percent rise in its shares to Rs 643 during morning trade on February 23, following its distinction as the first automotive component manufacturer to attain certification under the Auto Production Linked Incentive (PLI) scheme.
Under the PLI scheme, the company submitted seven applications for various products and secured certification for its initial product, a hub-wheel drive motor designed for electric two-wheelers.
Launched in 2021, the Auto PLI scheme aims to boost domestic production of advanced automotive technology vehicles and products, with a budgetary allocation of Rs 25,900 crore over five years starting from fiscal 2023-24.
Vivek Vikram Singh, the managing director of the company, expressed that this recognition underscores their commitment to showcasing India’s engineering capabilities and addressing intricate engineering challenges for clients.
In the third quarter, the company posted a 24 percent year-on-year increase in net profit, reaching Rs 113.6 crore. Its revenue from operations also witnessed a significant surge, rising by 15.8 percent to Rs 781.80 crore from Rs 675.30 crore.
By 10:10 am, the stock had moderated its early gains and was trading at Rs 625, marking a 2 percent increase from the previous close. Over the last three months, the stock has gained 9 percent.
