Q4 2025 MM Forgings Ltd Earnings Call Transcript
Key Points
- MM Forgings Ltd (BOM:522241) achieved an EBITDA margin of 19.91% for FY25, showing an improvement from the previous year's 18.9%.
- The company has seen a steady increase in its machine sales, which now constitute 58% of total sales, up from 20% a few years ago.
- Domestic sales have been strong, particularly in the commercial vehicle market, due to new cabin regulations boosting demand.
- The company is expecting to add INR100 crores in export sales in FY27 and FY28 through new customer acquisitions.
- MM Forgings Ltd (BOM:522241) plans to commission a new 16,500-ton press by the end of the calendar year, which is expected to enhance production capabilities.
- The company experienced a 3% drop in sales for FY25 compared to the previous year.
- Export markets, particularly the US and Europe, have been sluggish, with expectations of a 10% to 15% decline in export sales.
- There has been a significant increase in receivables, rising from INR275 crores to INR375 crores, attributed to higher sales in the fourth quarter.
- The company's EV component business has not yet generated revenue, with delays attributed to customer hesitancy and market conditions.
- MM Forgings Ltd (BOM:522241) faces challenges in diversifying beyond the automotive sector, with non-auto sales currently at around 10% of total sales.
Ladies and gentlemen, good day, and welcome to the Q4 and FY25 earnings conference call of MM Forgings Limited, hosted by Batlivala and Karani Securities India Private Limited.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Annamalai Jayaraj from B&K Securities. Thank you, and over to you, sir.
Thanks, Pooja. Welcome to MM Forgins Limited 4Q FY25 and the FY25 posts a conference call from MM Forgings Limited Management. We have with us today Mr. Vidyashankar Krishan, Chairman and Managing Director; and Mr. Venkatakrishnan, Chief Financial Officer. I'll now hand over the call to Mr.
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