Happy Forgings Limited, a key player in the forging industry, has announced its financial results for the quarter ended June 30, 2025, showcasing resilience in a challenging market environment.

Financial Highlights

The company reported a revenue from operations of Rs. 354.00 crores, marking a 3.6% year-over-year increase. Despite market headwinds, Happy Forgings maintained its profitability metrics:

Segment Performance

• Commercial Vehicles: This segment, contributing 39% to the company's revenue, experienced a mid-single digit decline.
• Farm Equipment: Accounting for 32% of revenue, this segment outperformed the overall growth rate of the company.

Strategic Investments and Expansion

Happy Forgings has demonstrated a strong commitment to growth and innovation:

1. Invested Rs. 110.00 crores in new machining lines.
2. Announced a significant CAPEX plan of Rs. 650.00 crores for heavyweight precision components.

New Order Wins

The company secured several notable orders:

• Rs. 250.00 crores from a European farm equipment OEM
• Rs. 300.00 crores for wind energy components
• Rs. 180.00 crores annually for data center applications

Management Outlook

Happy Forgings' management has expressed optimism about the company's future:

• Projected medium-term growth of 15-18%
• Anticipates high single-digit growth in domestic commercial vehicle and farm equipment segments

Conclusion

Happy Forgings Limited has demonstrated its ability to navigate challenging market conditions, maintaining stable margins while securing strategic orders across diverse sectors. The company's investment in new machining lines and ambitious CAPEX plans signal a strong focus on future growth and technological advancement. As the commercial vehicles and farm equipment segments show signs of recovery, Happy Forgings appears well-positioned to capitalize on emerging opportunities in the precision components market.

Happy Forgings Limited has announced its unaudited financial results for the first quarter, showcasing robust performance and strategic moves to enhance corporate governance.

Financial Highlights

Happy Forgings reported revenue of Rs 354.00 crores for Q1, representing a 3.6% year-on-year increase. EBITDA grew 3.6% to Rs 101.00 crores while PAT rose 3.0% to Rs 66.00 crores. The company maintained stable EBITDA margins at 28.6% and improved gross profit margins by 140 basis points to 57.9%.

Additional key financial metrics include:

Operational Performance

Finished goods volume increased 3.8% to 14,457 MT with realization per kg remaining stable at Rs 245.00. The forging capacity utilization improved from 57% to 59% while machining capacity utilization decreased from 83% to 77%.

Future Plans

The company plans Rs 80.00 crores capex for passenger vehicle segment scaling and Rs 650.00 crores for heavy forgings capacities.

Appointment of Internal Auditors

Happy Forgings' Board of Directors has approved the appointment of two reputable firms as internal auditors:

1. SCV & Co. LLP (Firm Registration No.: 000235N/N500089)
2. KPMG Assurance and Consulting Services LLP (LLP Registration No. AAT-0367)

These appointments, based on the recommendations of the Audit Committee, are expected to enhance the company's financial oversight and compliance mechanisms.

Employee Stock Option Scheme

During the quarter, 43,811 employee stock options were exercised under the "HAPPY FORGINGS ESOP SCHEME 2023."

Utilization of IPO Proceeds

Happy Forgings provided an update on the utilization of funds raised from its Initial Public Offering (IPO):

• Total amount utilized: Rs. 30,135.43 lacs
• Remaining unutilized amount: Rs. 7,646.90 lacs

The unutilized funds have been temporarily invested in fixed deposits. The company has fully utilized the allocated amounts for repayment of borrowings (Rs. 15,276.00 lacs) and general corporate purposes (Rs. 5,393.70 lacs). The ongoing utilization is primarily for the purchase of equipment, plant, and machinery.

Management Commentary

Management noted resilient performance despite headwinds in end-user industries and deflationary steel prices, with healthy domestic demand in passenger vehicles, farm equipment, and industrial segments, though exports were impacted by sluggish demand and tariff uncertainties.

Ashish Garg, Managing Director of Happy Forgings Limited, stated, "We are pleased with our performance in the first quarter. Our strong revenue and profit figures reflect the robust demand for our auto components and engineering parts. The appointment of SCV & Co. LLP and KPMG as our internal auditors underscores our commitment to maintaining the highest standards of corporate governance."

Happy Forgings Limited continues to operate as a single segment company, focusing on the manufacture of auto components and engineering parts.

Investors and stakeholders can access the detailed financial results on the company's website at www.happyforgingsltd.com .