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 .

Happy Forgings Limited , a leading manufacturer in the forging industry, has released its financial results for the fourth quarter, showcasing steady growth and improved profitability.

Q4 Financial Highlights

• Net Profit: The company reported a consolidated net profit of ₹676.00 million, up from ₹658.00 million in the same period last year, marking a 2.73% increase.
• Revenue: Revenue rose to ₹3.52 billion, compared to ₹3.43 billion in the previous year, representing a 2.62% growth.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved to ₹1.02 billion from ₹971.00 million year-over-year.
• EBITDA Margin: The EBITDA margin expanded to 29.05% from 28.29% in the corresponding quarter last year.

Dividend Announcement

In a move that will likely please shareholders, Happy Forgings has recommended a final dividend of ₹3.00 per share.

Financial Performance Analysis

The company's Q4 results demonstrate resilience in a challenging economic environment. The modest increase in net profit and revenue suggests that Happy Forgings has maintained its market position while slightly improving its operational efficiency.

The expansion of the EBITDA margin is particularly noteworthy, as it indicates enhanced cost management and operational effectiveness. This improvement in profitability metrics is crucial for the company's long-term financial health and its ability to generate value for shareholders.

Year-on-Year Comparison

Looking at the broader picture, Happy Forgings has shown consistent growth over the past year:

The annual figures reveal a more robust growth trajectory compared to the quarterly results, with double-digit growth across all key financial metrics.

Conclusion

Happy Forgings' Q4 results, coupled with its annual performance, paint a picture of a company on a steady growth path. The recommendation of a dividend further underscores the management's confidence in the company's financial stability and its commitment to delivering value to shareholders. As the company moves into the new fiscal year, investors and market watchers will be keen to see if this positive momentum can be maintained amidst evolving market conditions.