Happy Forging Limited · NSE:HAPPYFORGE
Happy Forging — Happy Forgings — Q4 FY25 Earnings Presentation
36 slides from Happy Forging's earnings presentation, May 17, 2025
Slide 1: Cover letter to stock exchanges
May 17, 2025 To BSE Ltd, National Stock Exchange of India Ltd. Corporate Relationship Department, Listing Department, Phiroze Jeejebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai- 400 051 Scrip Code: 544057 Symbol: HAPPYFORGE Sub : Presentation
Slide 2: Investor Presentation Q4 & FY25
INVESTOR PRESENTATION Q4 & FY25 1
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), prepared by Happy Forgings Limited (the “Company”), are intended solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not
Slide 4: Q4 & FY25 Performance Highlights
Q4 & FY25 Performance Highlights
Slide 5: Message from the Managing Director
MESSAGE FROM THE MANAGING DIRECTOR “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 g
Slide 6: Q4 & FY25 Performance Highlights
Q4 & FY25 PERFORMANCE HIGHLIGHTS Financials Revenue From Operations EBITDA & EBITDA % PAT & PAT % in Rs Crs 28.3% 29.1% 19.2% 19.2% 2.5% 5.3% 102 2.8% 343 352 97 66 68 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 28.5%/28.1%* 28.9% 17.9%/17.6%* 19.0%/18.6%^ 3.7%/4.7%* 1,409 4.9%/ 7.4%* 1,358 407
Slide 7: Volume & Realisation Trend
VOLUME & REALISATION TREND Annual FG Volume and Realisation Trend FY25 vs FY24 (Volume and Realisation) Realisation/Kg (Rs.) Finished Goods Volume (MT) FY25 Vs FY21 Particulars FY24 FY25 YoY 55,379 56,906 50,656 1.6x 42,777 35,534 FG Volume 55,379 56,906 2.8% (MT) 243 248 232 201 Realisation/Kg 1.5x
Slide 8: Profit & Loss Statement
PROFIT & LOSS STATEMENT (In Rs. Crs) Q4FY25 Q4FY24 YoY FY25^ FY24* YoY Revenue from Operations 352 343 2.5% 1,409 1,358 3.7% Raw Material cost & change in inventories 146 149 592 597 Gross Profit 206 194 6.4% 817 762 7.3% Gross Profit Margin 58.7% 56.5% 58.0% 56.1% Employee Cost 32 30 125 114 Other
Slide 9: Key Data Points
KEY DATA POINTS PRODUCT MIX SECTOR MIX GEOGRAPHY MIX 11% 14% 19% 18% 13% 43% 38% 85% 12% 87% 32% 32% 81% 82% 1% 4% 15% 13% FY24* FY25 FY24^ FY25 FY24 FY25 Automotive - Commercial Vehicles Automotive - Passenger Vehicles Forged Products Machined Products Exports Domestic Non-Automotive - Farm Equipme
Slide 10: Driving Optimal Utilization and Efficiency
DRIVING OPTIMAL UTILIZATION AND EFFICIENCY Strategically adding capacity with a strong focus on capital efficiency 87% 83% 58% 57% 57,000 127,000 120,000 51,000 FY24 FY25 FY24 FY25 Forging Capacity (in MT) Machining (in MT) Utilisation Utilisation Note: Figures represent Annual Capacity. Installed c
Slide 11: Consistency of Growth and Returns
CONSISTENCY OF GROWTH AND RETURNS Superior return metrics with reducing net debt/EBITDA wherein capex has been largely funded by internal accruals ROE % ROCE % 23.5% 26.2% 19.9% 21.8% 22.7% 18.7% 17.5% 19.2% 14.4% 15.2% FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25^ GROSS FIXED ASSETS TURNOVER N
Slide 12: Expansion into Heavyweight Components to Propel the Next Leg of Growth
EXPANSION INTO HEAVYWEIGHT COMPONENTS TO PROPEL THE NEXT LEG OF GROWTH HFL to emerge as one of the leading players in the global supply chain for heavyweight components Financial & Strategic Impact… QUANTUM & Upto Rs. 650 Crs, to be spread over next 2-3 years Capabilities and Segment Leadership FUND
Slide 13: Company Overview
is HAPPY FORGINGS LIMITED Company Overview
Slide 14: A Legacy of Excellence
A LEGACY OF EXCELLENCE About Us Incorporated in July 1979, Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components Revenue EBITDA % The company manufactures high precision products such as crankshafts, FY25 FY
Slide 15: Vision Mission Statement
VISION MISSION STATEMENT VISION To be amongst the top 10 forging and machining companies globally MISSION State-of-the-art Technology Deliver more than promised Respect and encourage people Inspire innovation and creativity Care for the environment and society
Slide 16: Business Evolution Spanning Over Four Decades
BUSINESS EVOLUTION SPANNING OVER FOUR DECADES Established a single unit Initiated installation of 8,000-tonne Commissioned the second HFL achieved a milestone by getting for manufacturing bicycle forging press and model grinding for listed on the NSE and BSE 8,000-tonne press crank arms 4/6-cylinder
Slide 17: Fully Integrated Capabilities
FULLY INTEGRATED CAPABILITIES Forging Machining Die Design & Manufacturing Fully automated forging Advanced software and equipment to Latest technology and tools to offer a press lines and hammers to produce ensure that our machining processes wide range of services, including design, high-quality f
Slide 18: Complete Process Flow
COMPLETE PROCESS FLOW Covered Raw Material Yard Billet Cutting Section Metallurgical Testing Lab Forging Machining Heat Treatment Control Cooling Standard Room Final Inspection Packaging & Dispatch 17
Slide 19: Multi-Product and Multi-Industry Offerings (1/2)
MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (1/2) Commercial Vehicles Power Generation Suspension Rear Axle Products Front Axle Component Components Crankshaft Differential Case Crankshaft Farm Equipment Windmill Applications Crankshaft Crown Wheel Housing Planet Carrier Output Shaft Axle Shaft Pinio
Slide 20: Multi-Product and Multi-Industry Offerings (2/2)
MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (2/2) Off-highway Vehicles Oil & Gas Crankshaft Valve Bodies Bucket Link Passenger Vehicles Railways Crankshafts Piston Pin Connecting Rod Brake Flange E Axle Components 19
Slide 21: Paving Our Path Towards Accelerated Value Creation
PAVING OUR PATH TOWARDS ACCELERATED VALUE CREATION Transition from a forging led player to a leading manufacturer of machined components in India In-house design capabilities & fungible production lines have led to a diverse product offering, continuous value addition Increasing global presence thro
Slide 22: High Entry Barriers
HIGH ENTRY BARRIERS CAPITAL INTENSIVE BUSINESS ▪ Capital-intensive business that involves complex technology, machinery and systems acting as an entry barrier for smaller and unorganized players STRATEGIC RESILIENCE ▪ Lengthy customer and product approval processes SELECTIVE SUPPLIER DYNAMICS ▪ Diff
Slide 23: Ability to Install and Operate High Tonnage Presses and Precision Machining
HAVE DEMONSTRATED THE ABILITY TO INSTALL AND OPERATE HIGH TONNAGE PRESSES AND PRECISION MACHINING Total Forging Capacity* 127,000 MT Total Machining Capacity* Kanganwal I Kanganwal II Dugri 57,000 MT Started in 1995 Kanganwal, Ludhiana Started in 2006 Kanganwal, Ludhiana Started in 2021 Dugri, Ludhi
Slide 24: Architects of Progress
ARCHITECTS OF PROGRESS Paritosh Kumar Narinder Singh Juneja Chairman & Managing Director Chief Operating Officer • ~45 years of experience in the industrial sector • Has over 50 years of experience in the industrial sector • Bachelor’s degree in arts from S.C. Dhawan Government • Holds a post gradua
Slide 25: Navigating the Path to Sustainable Growth
NAVIGATING THE PATH TO SUSTAINABLE GROWTH Grow inorganically through Use in-house capabilities for strategic acquisitions and product development to tap STRATEGIES alliances into industrial market opportunities AHEAD Enter lightweight forging and Continue to reduce operating machining for passenger
Slide 26: Historical Financial Statements
Historical Financial Statements
Slide 27: Profit & Loss Statement
PROFIT & LOSS STATEMENT Profit and Loss (in Rs. Crs) FY25^ FY24 FY23 FY22 Revenue from Operations 1,409 1,358 1,197 860 Raw Material cost & change in inventories 592 597 551 388 Gross Profit 817 762 645 472 Gross Profit Margin (%) 58.0% 56.1% 53.9% 54.8% Employee Cost 125 114 88 69 Other Expenses 28
Slide 28: Balance Sheet
BALANCE SHEET Assets (in Rs. Crs) Mar 31, 25 Mar 31, 24 Mar 31, 23 Mar 31, 22 Equity & Liabilities (in Rs. Crs) Mar 31, 25 Mar 31, 24 Mar 31, 23 Mar 31, 22 Non-Current Assets 1,297 1,144 836 704 EQUITY 1,850 1,612 988 788 Property, Plant and Equipment 900 742 677 455 Equity Share Capital 19 19 18 18
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT Cash Flow Statement (Rs in Crs) Mar 31, 24 Mar 31, 24 Mar 31, 23 Mar 31, 22 Profit before tax 360 324 280 192 Adjustments for depreciation and other items 65 72 71 40 Operating profit before working capital changes 424 396 351 232 Changes in working capital -49 -123 -78 -109 Cash
Slide 30: Impact Beyond Performance
2 9 Impact Beyond Performance
Slide 31: Our Key ESG Initiatives During FY 2025
OUR KEY ESG INITIATIVES DURING FY 2025 Constituted a cross-functional committee to drive energy efficiency and decarbonisation initiatives within the company Performed an ESG gap assessment and benchmarking exercise to evaluate the current state and identify priority areas for enhancement In FY2025,
Slide 32: Our ESG Targets & Commitments
OUR ESG TARGETS & COMMITMENTS Selected Long and Medium Term Targets Environment Social Governance o 50% reduction in Scope 1 and Scope 2 o Skill upgradation training to 100% of o ESG target linked incentives to Board Carbon Emissions by 2030* workforce members o Reduction in freshwater consumption b
Slide 33: Governance - A Diverse Board with Strong Independent Directors
GOVERNANCE - A DIVERSE BOARD WITH STRONG INDEPENDENT DIRECTORS Director (Name, Age & Experience) Areas of Expertise Key Board Memberships & associations (Current & past) Key Board Highlights 69 Diverse Board in terms of professional and ▪ Sales & marketing industry experience, age and gender ▪ Curre
Slide 34: Social – CSR Activities in FY2025
SOCIAL – CSR ACTIVITIES IN FY2025 CSR Spend – FY2025 CSR Spend Details Category Project / Organization funded Pictures Gallery ▪ Donated 7 vehicles for administration of ▪ Eco & Ultrasound machines donated to Shri emergency/support health services Nav Durga Mandir Charitable Hospital & Children & He
Slide 35: Awards, Accreditations and Recognitions
AWARDS, ACCREDITATIONS AND RECOGNITIONS Special Appreciation Award at Mahindra Supplier Excellence Awards - March 2025 Quality Performance Award FY24 for excellent performance in incoming parts quality by Ashok Leyland Gold award for “Superlative Performance in Agility” – 2024 Ashok Leyland Supplier
Slide 36: For Further Information, Please Contact
35 COMPANY INVESTOR RELATIONS ADVISOR FOR FURTHER INFORMATION, PLEASE CONTACT CIN: L28910PB1979PLC004008 CIN: U74140MH2010PTC204285 Mr. Vikas Thakur Ms. Ami Parekh / Mr. Chaitanya Satwe E: investor.relations@happyforgingsltd.co.in E: ami.parekh@sgapl.net / chaitanya.satwe@sgapl.net T: +91 99159 5191