Auto Ancillary engaged in designing and manufacturing heavy forgings and high-precision components jumped 2 percent upon receiving an order worth Rs. 400 Crores.
With a market capitalization of Rs. 9,152 Crores, the shares of Happy Forgings Limited were trading at Rs. 971.45, up 0.46 percent from its previous day’s close price of Rs. 967.
Happy Forgings Limited has received a work order from a leading Indian automobile manufacturer of passenger vehicles for the manufacturing and supply of fully machined components for the SUV segment. The total consideration of the said work order is worth Rs. 60-70 crores p.a. and ~Rs 400 crores for 6 years starting from 1st April 2024.
With this order, the Company will establish its presence in the Passenger Vehicles segment as it aims to diversify the sectoral revenue generation mix further in domestic as well as overseas markets.
Happy Forgings Limited is engaged in the business of designing and manufacturing heavy forgings and high-precision machined components. It is the 2nd largest Producer of commercial vehicle and high horse-power industrial crankshafts in India and 4th largest Engineering-led manufacturer of complex and safety-critical, heavy forged, and high-precision machined components in India
It manufactures high-precision products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies catering to different industries and customers
It generates 84 percent of its revenue from forged products and 16 percent from machined products. It has a diversified sector-wise revenue mix and it is as follows, Automotive – Commercial Vehicles 41 percent, Non-Automotive – Farm Equipments 32 percent, Non-Automotive – Off-Highway Vehicles 14 percent, and Non-Automotive – Industrials 13 percent.
Its revenue from operations grew by 39.12 percent from Rs. 860 Crores in FY22 to Rs. 1,197 Crores in FY23, accompanied by increasing profits of Rs. 142 Crores to Rs. 209 Crores.
Written by: Bharath K.S
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