Castings & Forgings company Happy Forgings announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue from Operations: Rs 352 crore, up 2.5% YoY, backed by a strategic focus on higher quality and value-added product mix across core segments. Gross Profit: Rs 206 crore, up 6.4% YoY, with a 215 bps margin expansion. EBITDA: Rs 102 crore, up 5.3% YoY, with a 76 bps margin improvement. PAT: Rs 68 crore, up 2.8% YoY, with an 19.2% margin. FY25 Financial Highlights: Revenue from Operations: Rs 1,409 crore, up 3.7% YoY. Gross Profit: Rs 817 crore, up 7.3% YoY, with a 193 bps margin expansion. EBITDA: Rs 407 crore, up 4.9% YoY, with margins improving to 28.9%. PAT: Rs 267 crore, up 10.1% YoY. Ashish Garg, Managing Director, Happy Forgings, said: “I am pleased to share the key performance highlights for FY25 and Q4FY25, which reflect our resilience driven by a strategic focus on business diversification, expansion into new verticals, and the pursuit of higher value-add business that contributed to overall growth. In FY25, we delivered our best-ever full-year profitability, with a Gross Profit margin of 58.0%, an EBITDA margin of 28.9%, and an adjusted PAT margin of 18.6%, reflecting consistent profitability improvement over the years. Revenues grew 4.7% yoy on an adjusted basis, despite a ~4% impact from the decline in steel prices. Adjusted EBITDA and PAT grew by 7.4% and 11.2%, respectively. Realisation for the year stood at Rs. 248/kg, 1.5 times higher than 2021 levels. During the year, we announced new orders worth over Rs. 1,600 crore in the PV and Industrial segments, to be executed over the next 5- 8 years, with annual peak sales potential from these orders exceeding Rs. 250 crore. During Q4FY25, we recorded yoy growth of 2.5%, 6.4%, and 5.3% in Revenues, Gross Profit, and EBITDA, respectively, supported by strong and improved Gross Profit and EBITDA margins of 58.7% and 29.1%, respectively. We witnessed encouraging yoy growth in the Industrials, Off-highway, and Farm Equipment segments in Q4FY25. This strong performance was achieved despite significant headwinds, including a double-digit decline in international CV, Farm Equipment, and Off-highway segments, a domestic slowdown in the MHCV segment, and falling steel prices, demonstrating the strength and resilience of our business model. Our balance sheet remains robust, with liquidity of Rs. 356 crore. with one of the lowest DE ratio at 0.1x, supported by strong operating cash flow generation of Rs. ~290 crore. in FY25. This positions us well to support our capex plan over the next three years that can be funded primarily through internal accruals. Reflecting our strong financial position, the Board has recommended a dividend of Rs. 3 per share for FY25, implying a payout ratio of ~11%. We remain committed to our strategic priorities and growth, investing in capabilities to serve diversified segments while pursuing value-accretive opportunities to reinforce our positive trajectory.” Result PDF
Conference Call with Happy Forgings Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.