Lower Fixed Costs Aid Sona Comstar To Mitigate Crisis

Sona Comstar, an innovation-inspired Indian MNC focussing on the design and development of nextgen electrical powertrain systems for automotive applications, with its presence in Europe & North America, is sitting on an INR 17,600 crore order book, to be executed during the next ten years.

In the third quarter, the company reported 54% growth in revenue and 65% growth in PAT year-to-date. The company that has been growing at 36% CAGR for the past two decades sees that the only way to sustain the momentum is by winning new businesses, as the industry will never grow at this rate.

Therefore, it believes that its presence has to be everywhere – in making everything possible from the components to the sub-system and the systems to capture all the value addition and manage volatility.

Speaking to Mobility Outlook, Vivek Vikram Singh, Group CEO, Sona Comstar, said, “We have a very resilient business model; our fixed cost is very low as our value addition is high. Therefore, in bad times we won’t lose much money. Moreover, we don’t have to run at 100% capacity to make profits as we enjoy a lot of operating leverage."

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