Happy Forgings (HAPPYFORGE) Q3 24/25 earnings summary

Executive summary

• Achieved growth in absolute revenue, EBITDA, and PAT for 9M FY25 and Q3 FY25 despite sector challenges, supported by diversification into Industrials and Passenger Vehicles and new business initiatives.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 7, 2025, with no material misstatements identified.

• Announced INR 650 crore CapEx for heavyweight forging facility, first of its kind in Asia, to drive future growth and expand export footprint.

Financial highlights

• Q3 FY25 revenue: INR 354 crore, up 3.6% YoY; EBITDA: INR 101 crore, up 6.6% YoY; PAT: INR 65 crore, up 11.5% YoY; EBITDA margin: 28.6%.

• 9M FY25 revenue: INR 1,057 crore, up 5.5% YoY (adjusted); EBITDA: INR 304 crore, up 8.2% YoY (adjusted); PAT: INR 195 crore, up 14.3% YoY; PAT margin: 18.4%.

• Realization per kg improved by 4% YoY in 9M FY25; finished volume: 42,564 MT, up 1.5%.

• Basic EPS for Q3 FY25 was INR 6.85; 9M FY25 EPS was INR 21.20.

• Gross profit margin improved to 58.0% in Q3 FY25 (up 249bps YoY).

Outlook and guidance

• Anticipates gradual recovery in domestic CV sector in Q4, supported by infrastructure activity and government incentives.

• Heavyweight component CapEx expected to add INR 600–800 crore in annual revenue post-commissioning by FY27.

• Expects industrial segment to reach 18%-20% of sales in two years, excluding new CapEx impact.

• Unutilized IPO proceeds of INR 15,617.33 lakh as of December 31, 2024, are invested in fixed deposits and expected to be used for equipment purchases in the next quarter.