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.
Industrial Products company Happy Forgings announced Q3FY25 results Revenue from Operations: Rs 354 crore, up 3.6% YoY, driven by higher realizations and strong growth in Industrials and Passenger Vehicles business segment. Gross Profit: Rs 205 crore, up 8.3% YoY, with a 249 bps margin expansion. EBITDA: Rs 101 crore, up 6.6% YoY, with an 80 bps margin improvement. PAT: Rs 65 crore, up 11.5% YoY, with an 18.2% margin. Ashish Garg, Managing Director, Happy Forgings, said: “We closed Q3FY25 and 9MFY25 on a positive note, navigating headwinds in underlying industry segments and despite a decline in raw material prices. Driven by a ~4% improvement in realizations and a favourable product mix shift, we achieved 3.6% revenue growth in Q3FY25, with Gross Profit, EBITDA, and PAT increasing by 8.3%, 6.6%, and 11.5% YoY, respectively. Increased contribution from Industrials and Passenger Vehicles segment, helped us drive sustainable growth and profitability during this period. As part of our growth and diversification strategy, we have announced a Rs 650 crore investment to establish advanced forging capabilities in the heavyweight components segment which will drive long-term growth in Industrials and Exports segment while delivering strong returns.” Result PDF
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