Happy Forgings Ltd

Happy Forgings has allotted 17,375 equity shares under ESOS on 12 February 2025. The Paid-up Share Capital of the Company will accordingly increase from Rs.18,84,49,650 (9,42,24,825 equity shares of Rs.2/- each) to Rs. 18,84,84,400 ( 9,42,42,200 equity shares of Rs. 2/- each). Powered by Capital Market - Live

This MoU sets the main terms and principles for a binding long-term supply contract, which will be signed when approved components start shipping in 2028. Under the MoU, the customer has committed an initial investment of approximately Rs 20 crore for tooling and development, with sampling and testing planned for 2027. The binding supply contract will commence in 2028 with the delivery of approved components. Annual revenues are expected to be approximately Rs 95 crore based on minimum committed volumes, with a peak potential of Rs 160 crore per year, contingent on the customer's equipment sales. This order will be executed through HFL's upcoming heavy forging facility, which is being developed as part of a Board-approved capital expenditure plan of Rs 650 crore sanctioned in January 2025. These new capabilities will position Happy Forgings among the select manufacturers capable of producing heavy forged and precision-machined components exceeding 250 kilograms. Ashish Garg, managing director of Happy Forgings, said: 'We are pleased to announce our first MoU in the heavy forged and precision machined components segment for parts exceeding 250 kg with a leading global manufacturer. This agreement provides strong visibility for the deployment of our new heavy forging capacity upon commissioning. It also reinforces our engineering expertise and positions HFL to pursue additional large-scale, heavyweight component opportunities across various industrial sectors. Expanding into this high-value segment aligns with our long-term strategy to diversify our portfolio, drive profitability, and create lasting value for our stakeholders.' Happy Forgings is principally engaged in the manufacturing of forgings and related components. The company's consolidated net profit jumped 11.5% to Rs 64.55 crore on 3.6% increase in net sales to Rs 354.32 crore in Q3 FY25 over Q3 FY24. The scrip declined 3.11% to end at Rs 932.25 on Tuesday, 11 February 205.Powered by Capital Market - Live

Happy Forgings has obtained an international order to supply heavy forged and precision-machined components weighing upto 1,000 Kgs for use in industrial and mining applications. The order entails annual committed volumes of Rs 95 crore with a peak annual revenue potential of Rs 160 crore. Testing and sampling is scheduled in 2027 and supplies are expected to commence in 2028 under the binding long-term supply contract. Powered by Capital Market - Live

Net profit of Happy Forgings rose 11.49% to Rs 64.55 crore in the quarter ended December 2024 as against Rs 57.90 crore during the previous quarter ended December 2023. Sales rose 3.61% to Rs 354.32 crore in the quarter ended December 2024 as against Rs 341.99 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales354.32341.99 4 OPM %28.6427.83 - PBDT105.9394.73 12 PBT86.8277.67 12 NP64.5557.90 11 Powered by Capital Market - Live

Happy Forgings will hold a meeting of the Board of Directors of the Company on 7 February 2025.Powered by Capital Market - Live

Happy Forgings (HFL) has announced that its Board of Directors' has approved a capital investment of up to Rs. 650 crore to establish advanced forging capabilities to serve the non-automotive industrial segment. This new facility will be the first of its kind in Asia and the second largest globally. The capex investment is focused towards heavy forged and machined components such as large crankshafts for industrial and marine applications, as well as other heavy components like axles, gears, oil & gas valves and flanges, spindles, connectors and shafts etc. These components will serve a range of non-automotive industries including, power generation, marine, mining, high-horsepower farm equipment, material handling equipment and cranes, wind energy, oil & gas and specialized segments like aerospace, defense and nuclear. With this investment, the company will expand into the higher-weight segment, producing components up to 3,000 kilograms. This strategic enhancement of forging capabilities positions HFL to cater to the non-automotive industrial segment, addressing niche applications where heavyweight components are critical. The total capital expenditure for this facility will be spread over the next 2-3 years, primarily financed through internal accruals and partially through debt, with production anticipated to commence by the end of FY2027. Powered by Capital Market - Live

The board of Happy Forgings at its meeting held on 06 January 2025 has approved capex budget of Rs 650 crore to setup facilities for heavyweight forged and machined components.Powered by Capital Market - Live

Happy Forgings has allotted 19,943 equity shares to the employees of the Company pursuant to exercise of options under its Employees Stock Options Scheme (ESOS). The Paid-up Share Capital of the Company will accordingly increase from Rs.18,84,09,764 equity shares of Rs.2/- each to Rs.18,84,49,650 equity shares of Rs. 2/- each.Powered by Capital Market - Live

The said initial order for the crankshaft component is valued at approximately Rs 140 crore, spanning the period from FY26 to FY31. Deliveries are scheduled to begin in FY26, following the successful completion of testing and approval processes. Peak annual revenues under this order are expected to reach Rs 27 crore. Depending on the sales performance of the vehicles using the crankshaft, a subsequent order could potentially double the supply volumes starting in FY28, increasing peak annual revenues to over Rs 50 crore. HFL's investments in manufacturing capabilities has positioned it to meet the growing demand for high-precision components from both global and domestic automotive OEMs. Ashish Garg, managing director of Happy Forgings said, 'This order highlights our ability to provide high-quality solutions driven by advanced engineering capabilities and a proven track record of successful execution. We are committed to maintaining our leadership in precision engineering and continue to focus on enhancing the value and innovation we bring to our products, while expanding our presence in the passenger vehicle segment.' Happy Forgings is principally engaged in the manufacturing of forgings and related components. The company's consolidated net profit jumped 29.2% to Rs 71.37 crore on 5.3% increase in net sales to Rs 361.13 crore in Q2 FY25 over Q2 FY24. The counter declined 2.98% to ends at Rs 1050.80 on Friday, 13 December 2024.Powered by Capital Market - Live

Net profit of Happy Forgings rose 29.15% to Rs 71.37 crore in the quarter ended September 2024 as against Rs 55.26 crore during the previous quarter ended September 2023. Sales rose 5.26% to Rs 361.13 crore in the quarter ended September 2024 as against Rs 343.08 crore during the previous quarter ended September 2023. ParticularsQuarter EndedSep. 2024Sep. 2023% Var. Sales361.13343.08 5 OPM %29.1827.33 - PBDT116.8889.99 30 PBT97.2273.79 32 NP71.3755.26 29 Powered by Capital Market - Live