The shares of the high-precision machined components manufacturer gained up to 7.17 percent after the company received a new work order worth Rs 500 crore from an automobile driveline manufacturer.
With a market capitalization of Rs 9,088.89 crore, the shares of Happy Forgings Ltd were trading at Rs 962.10 per share, increasing around 6 percent as compared to the previous closing of Rs 904.60 apiece.
According to the company filing, Happy Forgings Ltd has received a new work order from a leading global Tier 1 manufacturer of automobile driveline components and systems for the manufacturing and supply of brake flanges for passenger vehicles like utility vehicles and pickup trucks.
Furthermore, the value of this order is around Rs 500 crore for the entire duration; the firm will transfer Rs 60-70 crore every year till the order is completed, and the time frame will be from Q4 of FY 2026 or Q1 of FY 2027 until December 2034.
Looking into Happy Forgings Ltd’s performance, revenue increased by 16 percent from Rs 294 Crore in Q3FY23 to Rs 342 Crore in Q3FY24. During the same duration, net profit increased by 38 percent from Rs 42 crore to Rs 58 crore.
In Q3FY24, the firm reported a 16% YoY revenue gain despite declining steel prices, a remarkable 30% increase in EBITDA, and a 39% increase in PAT. EBITDA margins increased by 295 basis points to 27.8%, principally due to 75% growth in the export business and an 84% contribution from the value-added machining sector. For 9MFY24, operating revenue increased by 17%, EBITDA by 25%, and PAT by 26%.
With over 40 years of manufacturing experience, the firm has three production facilities, with 1.2 lakh tonnes of forging capacity and 51,000 tonnes of machining capacity.
Happy Forgings Limited makes automotive components. The company manufactures and markets steering knuckles, front axle beams, bevel gears, counter shafts, and transmission components.
Written by:- Abhishek Singh
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