Shares of Sona BLW Precision Forgings, also known as Sona Comstar, gained 5 percent to Rs 643 in the morning trade on February 23 after the company became the first automotive component manufacturer to receive certification under the Auto Production Linked Incentive (PLI) scheme.
The company has filed seven applications for different products under the PLI scheme, and it has received the certification for its first product, a hub-wheel drive motor for electric two-wheelers.
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In 2021, the government launched the Auto PLI (Production-Linked Incentive) scheme to encourage the domestic production of high-value advanced automotive technology vehicles and products. The PLI scheme allocated a budgetary outlay of Rs 25,900 crore over five years, commencing from fiscal 2023-24.
"This recognition reaffirms the company's commitment to making India proud of its engineering skills and solving complex and customized engineering problems for its customers," Vivek Vikram Singh, managing director of the company, said.
In Q3, the company reported a 24 percent year-on-year (YoY) rise in net profit at Rs 113.6 crore. It also clocked a substantial increase in revenue from operations, surging by 15.8 percent to reach Rs 781.80 crore, compared to Rs 675.30 crore.
At 10am, the stock pared early gains and was trading at Rs 625, up 2 percent from the previous close. The counter has gained 9 percent in the last three months.
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