Future growth expectations in sales/revenue/volumes?

FY'23 revenue target: INR 14-15 billion (INR 1,400-1,500 crores). FY'24 revenue expectation: Beyond INR 2,000 crores. FY'25 revenue: Expected to be further above INR 2,000 crores. Volume growth: 20%-25% expected growth in tonnage and revenues next year (FY'24). Capacity utilization end of year: Around 65%-70% of 110,000 tons capacity, with plans to augment press capacity to 30,000 tons. Growth driven by a mix of Indian market demand and export markets (India 60%-65%, Europe 15%, US 15%). Positive outlook for CV and PV segments, supported by India's growing economy and "China plus o

Future growth expectations in earnings/operating earnings/profits/EPS?

MM Forgings expects overall growth of 20% to 25% in the next year, aiming for revenues around INR 1,800 to 2,000 crores. EBITDA margins are targeting to improve towards 20% in FY'24, with recent quarters showing margins near 18-19.6%. Growth is driven by increased tonnage, heavier products, and higher machining share (now 60% of sales). The company anticipates higher realizations due to product mix improvements. FY'24 revenue targets are beyond INR 2,000 crores, with FY'25 expected to maintain or exceed this level, subject to macroeconomic conditions. Expansion plans include INR 500 crore cape

Current/ Expected Orderbook/ Pending Orders?

The transcripts do not provide a specific current or expected order book or pending orders figure for MM Forgings Limited. However, Vidyashankar Krishnan mentions positive momentum in orders, including: - Order wins in the European market contributing to export growth. - New product wins in the CV segment expected to drive growth above industry levels. - Initial EV order wins at the startup Abhinava Rizel for off-road motor applications. There is optimism about volume growth in FY’24 versus FY’23, especially in North America, Europe, and India. Trucking demand and government scrappage po

Any current/future new fundraising through debt or equity?

MM Forgings Limited has embarked on a significant capital expenditure (capex) plan worth INR 500 crores starting this year, focused mainly on expanding machining capacity and adding a large 6,300-ton press. There is no specific mention of new fundraising through debt or equity in the transcript. The company is evaluating capacity expansion plans but has not frozen any new capex beyond the ongoing INR 500 crores. Management noted that capital is not an issue, but capex allocation is to be carefully managed. No direct references to raising fresh debt or equity funding were made in the call.

Any current/future capex/capital investment/strategic investment?

The company has embarked on a capex of INR 500 crores starting this year. Approximately INR 200-300 crores of this is allocated to expanding machining capacity. Around INR 100 crores is directed towards forging capacity enhancement. Another INR 100 crores is focused on the electric vehicle (EV) or electrical side. They plan to add one 6,300-ton press, increasing total press capacity to about 30,000 tons by Q2 of the next fiscal year (June to September). Capex spent till the first nine months is approximately INR 200 crores. Expected capex spend in Q4 is INR 60 crores to INR 70 crores. The comp

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M M Forgings LtdQ4 FY24Auto Components

M M Forgings Ltd Q4 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹461P/E: 24.9Market Cap: ₹2.2K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→FY'23 revenue target: INR 14-15 billion (INR 1,400-1,500 crores).
→FY'24 revenue expectation: Beyond INR 2,000 crores.
→FY'25 revenue: Expected to be further above INR 2,000 crores.
→Volume growth: 20%-25% expected growth in tonnage and revenues next year (FY'24).
→Capacity utilization end of year: Around 65%-70% of 110,000 tons capacity, with plans to augment press capacity to 30,000 tons.
→Growth driven by a mix of Indian market demand and export markets (India 60%-65%, Europe 15%, US 15%).
→Positive outlook for CV and PV segments, supported by India's growing economy and "China plus one" strategy globally.
→Introduction of new products and increased machining share expected to improve realizations and drive growth beyond industry rates.
→Moderate growth potential in EV segment with order wins and planned powertrain offerings by FY'24 and FY'25.

Margin guidance

Category 3

→MM Forgings expects overall growth of 20% to 25% in the next year, aiming for revenues around INR 1,800 to 2,000 crores.
→EBITDA margins are targeting to improve towards 20% in FY'24, with recent quarters showing margins near 18-19.6%.
→Growth is driven by increased tonnage, heavier products, and higher machining share (now 60% of sales).
→The company anticipates higher realizations due to product mix improvements.
→FY'24 revenue targets are beyond INR 2,000 crores, with FY'25 expected to maintain or exceed this level, subject to macroeconomic conditions.
→Expansion plans include INR 500 crore capex primarily for machining and one large 6,300 ton press installation to boost capacity.
→Positive outlook on CV and PV segments, supported by scrappage policy and domestic demand resilience despite macro concerns.
→Export volumes to US and Europe expected to grow, benefiting from China-plus-one strategies and new product wins.

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Fundraise plans

→MM Forgings Limited has embarked on a significant capital expenditure (capex) plan worth INR 500 crores starting this year, focused mainly on expanding machining capacity and adding a large 6,300-ton press.
→There is no specific mention of new fundraising through debt or equity in the transcript.
→The company is evaluating capacity expansion plans but has not frozen any new capex beyond the ongoing INR 500 crores.
→Management noted that capital is not an issue, but capex allocation is to be carefully managed.
→No direct references to raising fresh debt or equity funding were made in the call.

Order book

Yes

→The transcripts do not provide a specific current or expected order book or pending orders figure for MM Forgings Limited.
→However, Vidyashankar Krishnan mentions positive momentum in orders, including:
→ - Order wins in the European market contributing to export growth.
→ - New product wins in the CV segment expected to drive growth above industry levels.
→ - Initial EV order wins at the startup Abhinava Rizel for off-road motor applications.
→There is optimism about volume growth in FY’24 versus FY’23, especially in North America, Europe, and India.
→Trucking demand and government scrappage policies are seen as drivers for sustained order inflows.
→The company expects overall improvement with a bullish outlook on CV and PV sales domestically and internationally.
→No explicit quantitative order backlog value or complete pending order details were disclosed.

Capex plans

Yes

→The company has embarked on a capex of INR 500 crores starting this year.
→Approximately INR 200-300 crores of this is allocated to expanding machining capacity.
→Around INR 100 crores is directed towards forging capacity enhancement.
→Another INR 100 crores is focused on the electric vehicle (EV) or electrical side.
→They plan to add one 6,300-ton press, increasing total press capacity to about 30,000 tons by Q2 of the next fiscal year (June to September).
→Capex spent till the first nine months is approximately INR 200 crores.
→Expected capex spend in Q4 is INR 60 crores to INR 70 crores.
→The company is evaluating additional capacity expansion plans beyond the ongoing capex but has not finalized anything yet.
→EV business is initially renting premises and plans to build factory premises later near Chennai.

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