Shares of this smallcap company jumped up to 3 percent in Friday’s trading session after receiving an order to supply E Axle components for Electric SUVs in US Passenger vehicles for the US market.
With a market capitalization of Rs. 9,056 crores, the shares of Happy Forgings Ltd started Friday’s trading session on a higher note at Rs. 988, gaining 3 percent compared to its previous close of Rs. 956.90 and are currently trading at Rs. 960.85 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had obtained an order to supply E-axis components and Steering Knuckles for the Electric SUVs Passenger Vehicle segment in the US market.
The contract spans 7 years, extending until FY32, with supplies set to commence in Q3FY25 reaching a full volume ramp-up by Q4FY26. Peak annual sales (assuming fully ramped-up volumes) are expected to exceed Rs. 50 crores p.a. with a cumulative value estimated at Rs 320 to 350 over the contract’s duration.
Commenting on the order, Mr. Ashish Garg, Managing Director said, “We are pleased to announce a significant milestone in our partnership with a global OEM to supply components for their E Axle program designed for Electric SUVs. Being selected as a trusted supplier of Electric SUV components reaffirms our expertise and manufacturing prowess. We are proud of this opportunity and confident in our ability to execute this contract successfully.”
Coming onto the company’s financial statements, the revenue decreased marginally by 0.2 percent from Rs. 343 crores during the September quarter to Rs.342 crores in the December quarter. On the other hand, the net profits increased by 5 percent from Rs. 55 crores to Rs. 58 crores during the same timeframe.
Earlier, the auto ancillary company had 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 to 70 crores p.a. and Rs 400 crores for 6 years.
The company’s forthcoming capital expenditure initiatives encompass the acquisition of a 6,300-ton press line, alongside the installation of another production line anticipated to accommodate a capacity of 20,000 tons, projected for implementation during the fiscal year 2026.
Incorporated in July 1979, 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 vehicles and high horse-power industrial crankshafts and the 4th largest Engineering-led manufacturer of complex and safety-critical, heavy forged in India.
Written By Vaibhav Patil
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