Happy Forgings Ltd Share Price – NSE  /  BSE

Castings, Forgings & Fastners, Small Cap

Happy Forgings will hold a meeting of the Board of Directors of the Company on 24 May 2024

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Happy Forgings has received an order for supply of axle components for electric SUVs in US passenger vehicle segment from a leading global manufacturer and supplier of automotive components. The supplies commence from Q3FY25 upto FY2032.

The value of the order is approximately Rs 50 crore per annum on fully ramped up supply volume and approximately Rs 320-350 crore for the entire period.

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This contract exemplifies HFL's commitment to innovation and customer satisfaction, showcasing the company's ability to cross-sell products to existing clients while maintaining the highest standards of quality and precision engineering.

The contract spans 7 years, extending until FY32, with supplies set to commence in Q3FY25 reaching a full volume ramp-up by Q4FY26. Peak annual sales (assuming fully ramped up volumes) can exceed around Rs 50 crore p.a. with a cumulative value estimated at approximately Rs 320-350 over the contract’s duration.

Ashish Garg, managing director, Happy Forgings, said, “We are pleased to announce a significant milestone in our partnership with a global OEM to supply components for their E Axle program designed for Electric SUVs. Being selected as a trusted supplier for Electric SUV components reaffirms our expertise and manufacturing prowess. We are proud of this opportunity and confident in our ability to execute this contract successfully.

As we move forward, we remain committed to upholding the highest standards of quality, reliability, and customer satisfaction. Our strategic focus on driving innovation and operational excellence remains unwavering. We believe that these initiatives will further solidify our position as a preferred supplier in the global marketplace. We are dedicated to continuously enhancing our offerings and strengthening our partnerships to drive mutual growth and success.”

Happy Forgings is principally engaged in the manufacturing of forgings and related components.

Happy Forgings reported 39.2% increase in standalone net profit to Rs 57.90 crore on 16.2% rise in revenue from operations to Rs 341.99 crore in Q3 FY24 over Q3 FY23.

The scrip rose 1.52% to end at Rs 956.15 on Thursday, 2 May 2024.

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Happy Forgings announced the confirmation of an order for the supply of Brake Flanges for passenger vehicles (utility vehicles / pickup trucks) to a large leading Global Tier-1 manufacturer of automobile driveline components and systems. 

Supplies under the contract will commence from Q4FY26/Q1FY27 post the interim part approval process. The total order value is estimated to be worth Rs. 60-70 crores p.a. and approximately Rs. 500 crore for the entire agreement period until December 2034.

This order signifies HFL's entry into the US Passenger Vehicles segment, enhancing its export share, product mix, and diversifying its revenue geographically.

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