Happy Forgings Limited has reported a strong financial performance for the third quarter of FY25, with net profit rising 22.8% YoY to ₹72.5 crore, compared to ₹59.1 crore in Q3 FY24. The company’s revenue from operations surged 25.6% YoY to ₹447.9 crore, reflecting strong demand and operational efficiency.
Key Financial Highlights (Q3 FY25):
- Revenue from operations: ₹447.9 crore, up 25.6% YoY from ₹356.6 crore in Q3 FY24.
- Net profit: ₹72.5 crore, a 22.8% YoY increase from ₹59.1 crore last year.
- EBITDA: ₹123.2 crore, reflecting a solid operational performance.
- Earnings per share (EPS): ₹7.70, up from ₹6.28 in Q3 FY24.
- Strong growth in the forging and machining components segment, which remains the company’s core business.
- Increased efficiency in cost management and production, boosting profitability.
- Continued demand from automotive and industrial sectors, supporting revenue expansion.
IPO Utilization and Expansion Plans:
Happy Forgings successfully completed its Initial Public Offering (IPO) in December 2023, raising ₹1,008.6 crore, including a fresh issue of ₹400 crore. As of December 31, 2024:
- ₹152.76 crore has been utilized for prepayment of borrowings.
- ₹171.13 crore allocated for plant and machinery, with ₹14.95 crore used as of Q3 FY25.
- ₹53.94 crore for general corporate purposes, fully utilized in FY24.
The remaining unutilized IPO funds of ₹156.17 crore are currently parked in fixed deposits for future use.
With robust revenue growth and a solid financial position, Happy Forgings is focused on expanding its production capacity and enhancing technological capabilities. The company aims to leverage its IPO proceeds for debt reduction and capital investment, positioning itself for sustained growth in the forging and machining sector.
The financial results were reviewed by S.R. Batliboi & Co. LLP, which provided an unmodified review report, affirming compliance with accounting standards.
