Happy Forging Limited · NSE:HAPPYFORGE
Happy Forging — Happy Forgings — Ambit UPNEXT Conference 2024
27 slides from Happy Forging's conference presentation, Sep 20, 2024
Slide 1: Analyst Presentation Cover Letter to Exchanges
20th September 2024 To, BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, Block G, Dalal Street, Mumbai – 400001 Bandra Kurla Complex, Bandra (E), Mumbai – 400051 Scrip Code: 544057 Trading Symbol:
Slide 2: Happy Forgings Limited - Ambit UPNEXT Conference
Happy Forgings Limited Ambit UPNEXT Conference September 20, 2024
Slide 3: Our Vision and Values
Our Vision To be amongst the top 10 forging and machining companies globally Our Values Stay at the forefront of technology Deliver more than promised Respect and encourage people Inspire innovation and creativity Care for the environment and society 2
Slide 4: Key Highlights
Key Highlights Scale Infrastructure Products Customers Financials 4th Largest 1,20,000T 70% of Forged Long-standing Best-in class engineering led manufacturer Forging Capacity1 production relationships margins & returns of complex and safety critical -------------------- coming from heavy lines ----
Slide 5: Our Journey
Our Journey YEAR YEAR YEAR YEAR YEAR 1979 - 2005 YEAR 2010 - 2015 YEAR 2020 - 2022 YEAR 2024 - 2025 1979 2008 2017-2018 2023 Heavy-duty Expanded machining Installed 8 Installed hammers Initiated installation capacity - Entered Commissioned the single-piece flow HFL achieved a 6,300-ton press in Esta
Slide 6: Experienced Promoters & Senior Management
Experienced Promoters & Senior Management Paritosh Kumar Garg Narinder Singh Juneja Chairman & Managing Director CEO & Whole - Time Director • ~45 years of experience in industrial sector • 50+ years of experience in industrial sector • Bachelor’s Degree in Arts, S.C. Dhawan • Post Diploma in Mechan
Slide 7: Seasoned Board
Seasoned Board Satish Sekhri Ravindra Pisharody Independent Director Independent Director • 48+ years of experience in the field of sales and • 38+ years of experience in marketing, space planning and marketing and the industrial sector space strategy • On the Board of JK Files and Engineering Limit
Slide 8: Global Footprints
Global Footprints Our business footprint extends across geographies. HFL serves customers across ten countries: Sweden United Kingdom Growing Contribution of Germany Direct Exports to Italy revenues United States Spain Türkiye Japan 9% 20% Thailand FY2021 FY2024 Brazil 7
Slide 9: Product Applications
Product Applications Commercial Passenger Vehicles Farm Equipment Railways Vehicles Off - Highway Power Oil and Gas Wind 8
Slide 10: Commercial Vehicles and Passenger Vehicles
Commercial Vehicles Differential Front Axle Component Case Suspension Products Rear Axle Crankshaft Component Passenger Vehicles Crankshaft Brake Flange Knuckle 9
Slide 11: Farm Equipment and Off Highway
Farm Equipment Crankshaft Crown Wheel Axle Shaft Pinion Off Highway Crankshaft Bucket Link 10
Slide 12: Power Generation and Windmill Application
Power Generation Crankshaft Windmill Application Housing Output Shaft Planet Carrier 11
Slide 13: Oil and Gas Industry and Railway
Oil and Gas Industry Valve Bodies Railway Piston Pin Connecting Rod 12
Slide 14: Manufacturing Facilities
Manufacturing Facilities Total Forging Capacity* 1,20,000 MT Total Machining Capacity* Kanganwal I (Ludhiana) Kanganwal II (Ludhiana) Dugri (Ludhiana) 52,500 MT Started in 1995 184,765 Sq. ft. Started in 2006 439,128 sq. ft. Started in 2021 1,771,208 sq. ft. Significant investments in Fungible produ
Slide 15: Capacity Addition
Capacity Addition Installed Capacity: FY24 vs FY20 Kanganwal II (Ludhiana,PB) Machining Capacity 51,000 1.7x Additions FY25 Forging: 6,300 tonne forging press 29,500 added in Q2FY25 120,000 Forging Machining: 1,500 MT 67,000 1.8x in Q1FY25, 4,500 MT in Q2FY25 and 5,000 MT in Q3FY25 FY20 FY24 Dug
Slide 16: Well Diversified Revenue Mix
Well Diversified Revenue Mix PRODUCT MIX SECTOR MIX GEOGRAPHY MIX 2% 12% 9% 17% 20% 38% 13% 73% 42% 85% 44% 80% 31% 91% 1% 27% FY21 FY24 FY21 FY24 15% FY21 FY24 Automotive - Commercial Vehicles Automotive - Passenger Vehicles Non-Automotive - Farm Equipments Forged Products Machined Products Non-Aut
Slide 17: Robust Growth Track Record
Robust Growth Track Record Particulars FY20 FY21 FY22 FY23* FY24 CAGR (FY20-FY24) Finished goods volume (MT) 32,284 35,534 42,777 50,656 55,379 14% Volumes & Realisation Realisation/Kg (Rs.) 173 165 201 232 245 9% EBITDA/Kg (Rs.) 44 45 54 63 70 12% Particulars FY20 FY21 FY22 FY23# FY24 CAGR (FY20-FY
Slide 18: Consistency in Margins & Returns
Consistency in Margins & Returns EBITDA Margin % PAT Margin % Consistent 28.5% 17.9% 27.1% 26.8% 27.0% 16.5% Margin 25.5% 16.3% 14.3% 14.8% Performance FY20 FY21 FY22 FY23* FY24 FY20 FY21 FY22 FY23* FY24* ROE % ROCE % IPO IPO Robust Return 23.5% 25.7% 19.9% 18.7% 21.1% 21.8% Metrics 15.4% 14.4% 17.6
Slide 19: Strategic Priorities
Strategic Priorities Grow inorganically Use in-house capabilities for through strategic acquisitions product development to tap and alliances into industrial market STRATEGIES opportunities AHEAD Continue to reduce Enter lightweight operating costs and forging and machining for improve operational p
Slide 20: Q1FY25 Performance Highlights
Q1FY25 Performance Highlights
Slide 21: Q1FY25 Performance Highlights
Q1FY25 Performance Highlights REVENUE (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) 30.4% / 29.1%* 28.6% 19.4%/18.4%* 18.7% +4% / +7%* -3% / +5%* 0% / +9%* 330 341 100 98 64 64 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Margins 20 20
Slide 22: Volume & Realisation Trend
Volume & Realisation Trend Q1FY25 Volume and Realisation Particulars Q1FY24 Q1FY25 YoY FY24 Finished Goods Volume (MT) 13,555 13,933 +2.8% 55,379 Realisation/Kg (Rs.) 243 245 +0.7%/+3.9%* 245 * During Q1FY24, revenue was favorably impacted by higher realisation on account of air freight costs receiv
Slide 23: Profit & Loss Statement
Profit & Loss Statement Consolidated P&L (Rs. Crs) Q1FY25 Q1FY24* YoY% FY24 Revenue from Operations 341 330 +3.5% 1,358 Raw Material cost & change in inventories 149 142 597 Gross Profit 193 188 +2.6% 762 Gross Profit Margin 56.5% 57.0% 56.1% Employee Cost 29 25 114 Other Expenses 66 63 260 EBITDA 9
Slide 24: Key Data Points
Key Data Points PRODUCT MIX SECTOR MIX* GEOGRAPHY MIX* Q1FY24 82% 18% Q1FY24 79% 21% 38% 42% 42% FY24 85% 15% FY24 80% 20% 34% 31% 31% 14% 13% 11% Q1FY25 87% 13% Q1FY25 82% 18% 14% 12% 12% 0% 1% 3% Q1FY24 FY24 Q1FY25 Automotive - Commercial Vehicles Forged products Machined products Exports Domestic
Slide 25: Installed Capacity & Utilisation Rate
Installed Capacity & Utilisation Rate Strategically adding capacity with a strong focus on capital efficiency 58% 56% 87% 85% 52,500 120,000 120,000 51,000 FY24 Q1FY25 FY24 Q1FY25* Forging Capacity (in MT) Machining (in MT) Utilisation Utilisation Figures represent Annual Capacity Note: Installed ca
Slide 26: Thank You
Thank You
Slide 27: Contact Us
Contact Us investor.relations@happyforgingsltd.com BXXIX-2254/1, Kanganwal Road, P. O. ami.parekh@sgapl.net Jugiana, Ludhiana, Punjab, India – 141120 chaitanya.satwe@sgapl.net