M M Forgings (522241) Q4 24/25 earnings summary

Executive summary

• FY25 turnover reached INR 1,547 crores, with EBITDA margin improving to 19.4% from 18.73% year-over-year; standalone turnover was INR 1,505 crores, down 3% from last year.

• Achieved total revenue exceeding ₹1,500 crore for the second consecutive year, with export sales contributing 39% of overall sales in FY25 compared to 38% in FY24.

• Operating EBITDA reached ₹324 crore, up 3% year-over-year, and the company invested ₹375 crore in fixed assets for future growth.

• Maintained consistent performance in FY25 through new product development, cost reduction, and market diversification.

• Final dividend of ₹4 per share recommended, subject to shareholder approval.

Financial highlights

• Standalone total revenue for FY25 was ₹1,506.51 crore, down from ₹1,552.46 crore in FY24; consolidated revenue was ₹1,547.82 crore, down from ₹1,583.55 crore.

• Standalone EBITDA for FY25 was ₹323.72 crore (FY24: ₹314.48 crore); consolidated EBITDA was ₹318.78 crore (FY24: ₹314.62 crore).

• Export sales for FY25 were ₹563 crore, representing 39% of total sales.

• Receivables increased from INR 275 crores to INR 375 crores, attributed to higher Q4 sales.

• Board recommended a final dividend of ₹4 per share, subject to shareholder approval.

Outlook and guidance

• Export sales expected to be sluggish, with a projected decline of 10%-20% year-over-year due to US and European market slowdowns and tariff uncertainties.

• Focus on new product development, cost control, and market diversification to address macroeconomic challenges and market stagnation.

• Domestic CV demand strong due to pre-buying ahead of new cabin regulations; Q1 outlook positive.

• Goals for FY26 include improving sales, cost control, product diversification, and enhancing operational talent.

• No specific revenue guidance for FY26 due to market headwinds.