M M Forgings (522241) Q4 24/25 earnings summary

Executive summary

• FY25 turnover reached INR 1,547.8 crore (consolidated), with EBITDA margin at 19.4%, and export sales contributing 39% of overall sales.

• Standalone turnover was INR 1,506.5 crore, down 3% year-over-year, with EBITDA at INR 323.7 crore (19.91%).

• Maintained performance through new product development, cost reduction, and market diversification amid global and domestic headwinds.

• Commercial vehicles, passenger vehicles, and agri/off-highway segments contributed to sales; domestic market accounted for 61.5%-62%, exports 38.5%-39%.

• Final dividend of ₹4 per share recommended, subject to shareholder approval.

Financial highlights

• Standalone EBITDA for FY25 was INR 323.7 crore, up 3% year-over-year; consolidated EBITDA was INR 318.8 crore.

• Export sales reached INR 563 crore, accounting for 39% of total sales.

• Receivables increased from INR 275 crore to INR 375 crore, attributed to higher Q4 sales.

• Net debt at INR 970 crore for FY25, expected to remain stable or decrease slightly in FY26.

• Board recommended a final dividend of ₹4 per share.

Outlook and guidance

• Export sales expected to be sluggish, with a potential 10%-20% year-over-year decline due to global trade uncertainties and US tariffs.

• Domestic CV market demand strong due to pre-buying ahead of new cabin regulations.

• Focus on sales growth, cost control, product diversification, and operational talent enhancement for FY26.

• No specific revenue guidance for FY26 due to market headwinds.

• Active forex management to optimize financial performance.