Conference Call with Happy Forgings Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Industrial Products company Happy Forgings announced Q2FY25 results Revenue: Rs 361 crore compared to Rs 343 crore during Q2FY24, change 5.3%. EBIDTA: Rs 105 crore compared to Rs 94 crore during Q2FY24, change 12.4%. PAT: Rs 71 crore compared to Rs 55 crore during Q2FY24, change 29.1% Ashish Garg, Managing Director said: “I am pleased to share our financial and operational performance for Q2 & H1FY25, where we achieved steady, broad-based improvements across revenue, gross profit, EBITDA and PAT. For Q2FY25, on an adjusted basis, sales grew by 6.1% YoY, with EBITDA by 14.8% and PAT increased by 23.8%. Realizations rose 3.6% to Rs. 253/Kg in Q2, driven by enhanced value addition in our product mix, despite a decline in steel prices. This reflects HFL’s consistent improvement in the product mix that comprises of highquality, niche, complex and critical machined components, which boosts our realisations and margins. These gains are reflected in our Gross Margin and EBITDA Margin for Q2FY25 which stood at 58.8% and 29.2% respectively, showing YoY growth. This positive yoy improvement is also reflected in absolute headline figures and margins for H1FY25 on an adjusted basis. In the underlying industry segments, the Commercial Vehicle, Off-Highway, and Industrial sectors are experiencing slowdown in both domestic and export markets, while Farm Equipment is seeing a decline in export markets. Despite these challenges, we have managed to outperform industry growth across most of these segments. We have successfully expanded our market share through new business while maintaining our share of business in existing accounts. Our focus remains on building a strong pipeline of new opportunities and investing in ramping up our capacities and utilization levels. As market conditions improve, we are confident that we are wellpositioned for accelerated growth. As we navigate dynamic market conditions, our dedicated approach to maintaining a strong balance sheet and commitment to high-quality, value-accretive growth will support us in delivering industry-leading profit margins and strong return ratios.” Result PDF