Happy Forging Limited · NSE:HAPPYFORGE
Happy Forging — Happy Forgings — Conference Presentation (May 2024)
23 slides from Happy Forging's conference presentation, May 2024
Slide 1: Corporate Presentation
HAPPY FORGINGS LIMITED Corporate Presentation
Slide 2: Our Vision Our 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 3: 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 Capacity production relationships margins & returns of complex and safety critical -------------------- coming from heavy lines -----
Slide 4: 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 Plan to install hammers Initiated installation capacity - Entered Commissioned the single-piece flow HFL achieved a 6,300-ton and 10,
Slide 5: Experienced Promoters And Senior Management
Experienced Promoters And Senior Management Paritosh Kumar Garg Narinder Singh Juneja Chairman & Managing Director CEO & Whole - Time Director • 44+ years of experience in industrial sector • 50+ years of experience in industrial sector • Bachelor’s Degree in Arts, S.C. Dhawan Government • Post Dipl
Slide 6: 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 marketing and the industrial sector and space strategy • On the Board of JK Files and Engineering Limit
Slide 7: Global Footprints
Global Footprints Our business footprint extends across geographies. HFL serves customers across nine countries: ▪ Brazil ▪ Italy ▪ Japan ▪ Spain ▪ Sweden ▪ Thailand ▪ Turkey ▪ United Kingdom ▪ USA 7
Slide 8: Product Applications
Product Applications Commercial Passenger Vehicles Farm Equipment Railways Vehicles Off - Highway Power Oil and Gas Wind 8
Slide 9: Commercial Vehicles Passenger Vehicles
Commercial Vehicles Differential Front Axle Component Case Rear Axle Crankshaft Suspension Products Component Passenger Vehicles Crankshaft Brake Flange
Slide 10: Farm Equipment Off Highway
Farm Equipment Crankshaft Crown Wheel Axle Shaft Pinion Off Highway Crankshaft Bucket Link 10
Slide 11: Power Generation Windmill Application
Power Generation Crankshaft Windmill Application Housing Output Shaft Planet Carrier 11
Slide 12: Oil and Gas Industry Railway
Oil and Gas Industry Valve Bodies Railway Piston Pin Connecting Rod 12
Slide 13: Business Units
Business Units Kanganwal, Ludhiana (I) Kanganwal, Ludhiana (II) Dugri, Ludhiana Forging of brake flanges, bushes, camshafts, Machining and forging bushes, connecting Forging and machining of brake flanges, crankshafts, connecting rods, crown wheels, rods, differential cases, camshafts, crankshafts,
Slide 14: Facilities
Facilities Forging ▪ One 14,000 ton mechanical forging press ▪ Three 8,000 ton mechanical forging presses ▪ One 4,000 ton mechanical forging press ▪ One 2,500 ton forging screw press ▪ One 6 ton pneumatic hammer ▪ Seven drop hammers ranging from 1.5 ton to 4.5 ton ▪ New capacities: 6,300 ton forging
Slide 15: Facilities (Cont'd)
Facilities (Cont’d) Machining We have dedicated lines for: ▪ Crankshafts to manufacture over 1 million products per annum ▪ Front Steering Knuckles to manufacture over 2,00,000 products per annum ▪ Differential Cases to manufacture over 2,00,000 products per annum ▪ Gear Blank Turning & Machined Hub
Slide 16: Capacity Addition
Capacity Addition Installed Capacity: FY24 vs FY20 Kanganwal II (Ludhiana,PB) Machining 51,000 1.7x 29,500 120,000 Forging 67,000 1.8x FY20 FY24 Dugri (Ludhiana,PB) Gross Block and Capex Kanganwal I (Ludhiana,PB) Gross Block FY24 (Ind AS) Rs. 1,108 Cr. 2.5x (Incl. CWIP) (Rs. 440 Cr. In FY21) C
Slide 17: Well Diversified Revenue Mix
Well Diversified Revenue Mix PRODUCT MIX SECTOR MIX GEOGRAPHY MIX 2% 12% 9% 17% 20% 38% 13% 42% 73% 85% 44% 80% 31% 91% 1% 27% 15% FY21 FY24 FY21 FY24 Automotive - Commercial Vehicles FY21 FY24 Automotive - Passenger Vehicles Non-Automotive - Farm Equipments Forged Products Machined Products Non-Aut
Slide 18: 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.) 45 45 54 63 70 12% Particulars FY20 FY21 FY22 FY23# FY24 CAGR (FY20-FY
Slide 19: 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 25.7% 16.3% 14.3% 14.8% Performance FY20 FY21 FY22 FY23* FY24 FY20 FY21 FY22 FY23* FY24* ROE % ROCE % Robust IPO IPO Return 23.5% 21.1% 25.7% 21.8% 19.9% 18.7% 17.6% Metrics 15.4% 14.4
Slide 20: 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 forging and machining for passenger operating costs and improve ope
Slide 21: Sustainability
Sustainability 1 2 3 4 5 MW solar power Implementation of 1,600 Halogen lights replaced Heat Treatment Facility plants installed at kVAR Hybrid APFC Panel with LED fixtures for redesigned, transitioning manufacturing facilities for improved power factor reduced electricity to cleaner LPG consumption
Slide 22: Thank You
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Slide 23: 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