Any current/future new fundraising through debt or equity?

MM Forgings plans a total capital expenditure of INR 500 crores over the next 12 to 24 months. Of this, approximately INR 300 crores will be funded through internal accruals (equity). The remaining INR 200 crores will be financed by additional borrowings (debt). No mention of fresh equity fundraising beyond utilizing internal accruals. The company aims to maintain a dividend payout policy of around 15%-20% of profits, subject to board approval and urgent requirements. This funding mix supports capacity expansion, including investments in forging, machining, and electrical/EV components.

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

MM Forgings plans a capex of around INR 500 crores over the next 12 to 24 months. INR 425 crores allocated to core forging: about INR 250 crores for machining and INR 100-150 crores for forging capacity expansion. INR 75 crores is targeted towards electrical segment (Abhinava Rizel). INR 400 crores of the capex expected to be spent within FY25, mainly on machining, forging, and EV motor facilities. About INR 75 crores spent so far in FY24 for Abhinava Rizel, mainly on infra and testing facilities for PMSM motors. Revenue potential from Abhinava Rizel capex is around INR 100 crores initially, a

Future growth expectations in sales/revenue/volumes?

FY24 production achieved around 85,000 tons; sales at 77,000 tons. FY25 production target: 92,000 to 95,000 tons. Sales growth expectation for FY25: around 10%-12%. Export volume growth expected at about 10% for the coming year. Domestic market growth projected at 5%-7%, with an additional 3% market share gain, primarily in the second half. Anticipated sales turnover growth: aiming for double-digit percentage growth (~10%). Investment of INR 500 crores planned over next 12-14 months to support capacity expansion and growth. Inventory reduction target: INR 50 crores to 100 crores aimed to impro

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

MM Forgings expects a 10%-12% overall growth in sales for the current year, driven by both domestic and export markets. EBITDA margins improved to 19.4% in FY24; management targets crossing the 20% mark by Q3/Q4 of the current fiscal year and maintaining early 20s margins thereafter. Operating efficiencies and cost compression (in cutting tools, manpower, electricity) alongside value-added products expansion are expected to enhance margins further. Export growth remains strong, supported by global customers shifting away from China, fueling order upticks especially in Europe and the Amer

Current/ Expected Orderbook/ Pending Orders?

MM Forgings has reported new orders across its three major export geographies (North America, Europe, South America), contributing to growth. There is strong order inflow driven by customers' China-plus-one strategy, especially from European customers looking to diversify away from China. Export growth of 10-15% is expected, supported by new orders despite some industry slowdown. Domestic market growth is projected around 10%, with 3% estimated market share gains in various product categories. Production targets for FY25 are between 92,000 to 95,000 tons, up from 85,000 tons produced in FY24.

M M Forgings LtdQ4 FY24

M M Forgings Ltd Q4 FY24 Earnings Call Analysis

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

Price: ₹494.05P/E: 21.2Market Cap: ₹2.4K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 3

FY24 production achieved around 85,000 tons; sales at 77,000 tons.
FY25 production target: 92,000 to 95,000 tons.
Sales growth expectation for FY25: around 10%-12%.
Export volume growth expected at about 10% for the coming year.
Domestic market growth projected at 5%-7%, with an additional 3% market share gain, primarily in the second half.
Anticipated sales turnover growth: aiming for double-digit percentage growth (~10%).
Investment of INR 500 crores planned over next 12-14 months to support capacity expansion and growth.
Inventory reduction target: INR 50 crores to 100 crores aimed to improve working capital and sales.
Margin expansion expected to cross 20% by Q3/Q4 calendar year, supporting healthy profitability with volume growth.

Margin guidance

Category 1

MM Forgings expects a 10%-12% overall growth in sales for the current year, driven by both domestic and export markets.
EBITDA margins improved to 19.4% in FY24; management targets crossing the 20% mark by Q3/Q4 of the current fiscal year and maintaining early 20s margins thereafter.
Operating efficiencies and cost compression (in cutting tools, manpower, electricity) alongside value-added products expansion are expected to enhance margins further.
Export growth remains strong, supported by global customers shifting away from China, fueling order upticks especially in Europe and the Americas.
Investments totaling around INR500 crores planned over next 12-14 months will expand capacity and support higher growth, targeting tonnage increase from ~85,000 tons in FY24 to 92,000-95,000 tons in FY25.
Management aims to scale the EV powertrain business to INR1,000-2,000 crores turnover over the next decade, contributing to future profit growth.
Interest costs will rise moderately but margin outlook remains positive despite this headwind.

See what M M Forgings Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

MM Forgings plans a total capital expenditure of INR 500 crores over the next 12 to 24 months.
Of this, approximately INR 300 crores will be funded through internal accruals (equity).
The remaining INR 200 crores will be financed by additional borrowings (debt).
No mention of fresh equity fundraising beyond utilizing internal accruals.
The company aims to maintain a dividend payout policy of around 15%-20% of profits, subject to board approval and urgent requirements.
This funding mix supports capacity expansion, including investments in forging, machining, and electrical/EV components.

Order book

Yes

MM Forgings has reported new orders across its three major export geographies (North America, Europe, South America), contributing to growth.
There is strong order inflow driven by customers' China-plus-one strategy, especially from European customers looking to diversify away from China.
Export growth of 10-15% is expected, supported by new orders despite some industry slowdown.
Domestic market growth is projected around 10%, with 3% estimated market share gains in various product categories.
Production targets for FY25 are between 92,000 to 95,000 tons, up from 85,000 tons produced in FY24.
Sales volume for FY24 was around 77,000 tons; volume growth of approximately 10% is anticipated for the coming year.
The company is actively working on launching new products in segments like heavy presses, beams, knuckles, and crankshafts to boost order book and presence.

See what M M Forgings Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

MM Forgings plans a capex of around INR 500 crores over the next 12 to 24 months.
INR 425 crores allocated to core forging: about INR 250 crores for machining and INR 100-150 crores for forging capacity expansion.
INR 75 crores is targeted towards electrical segment (Abhinava Rizel).
INR 400 crores of the capex expected to be spent within FY25, mainly on machining, forging, and EV motor facilities.
About INR 75 crores spent so far in FY24 for Abhinava Rizel, mainly on infra and testing facilities for PMSM motors.
Revenue potential from Abhinava Rizel capex is around INR 100 crores initially, aiming for higher growth later.
Funding mix: INR 300 crores from internal accruals and INR 200 crores via additional borrowings.
Plans to invest in green power (wind and solar) in the near future to mitigate rising power costs.

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