Q1 2027 MM Forgings Ltd Earnings Call Transcript
Key Points
- Strong revenue growth of 16% year-on-year, with total sales reaching INR427 crores in Q1 FY27.
- EBITDA margin improved to 18% (excluding other income), with PBT growing by 30% year-on-year.
- Machining mix increased to 67% of sales, driven by significant investments in machining capabilities over the past three years.
- Positive market outlook with strong momentum in domestic and US markets, particularly in the commercial vehicle sector.
- Successful sale of land in Chennai, realizing INR60 crores, which will be used to reduce debt and fund capital expenditures.
- Power and fuel costs increased significantly in Q1 due to the West Asian conflict and rising EV power costs in Tamil Nadu.
- Other expenses rose by 35% year-on-year, largely due to higher export freight costs from rerouting around the Strait of Hormuz.
- Employee costs increased steeply in Q1 due to annual increments and additional hiring, impacting profitability.
- Debt levels remain high at approximately INR750 crores, with no significant reduction expected this year.
- Capacity utilization is still below optimal levels, with management targeting to increase from 78,000 tonnes to 90,000+ tonnes this year.
Ladies and gentlemen, good day, and welcome to MM Forgings Limited Q1 FY27 earnings conference call hosted by 360 ONE Capital Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Dineshkumar from 360 ONE Capital. Thank you, and over to you, sir.
Welcome to MM Forgings Limited 1Q FY27 post results conference call. From the management side, we have with us today, Mr. Vidyashankar Krishnan, Chairman and Managing Director; and Mr. Raghunathan, Chief Financial Officer.
I will now hand over the call to Mr. Vidyashankar Krishnan for the opening remarks to be followed by question-and-answer session. Over to you, sir.
Good afternoon, everyone. Thank you all for joining us on MM Forgings Q1 FY27 results call.
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