Happy Forgings shares climb 2% after fresh order win. Details here

Shares of Happy Forgings Ltd rose 2.11 per cent to hit a day high price of Rs 987.40 in Friday's trade. Today's upward move in the share price came after the company announced that it has secured an order from a leading Indian automobile manufacturer of passenger vehicles.

"This order entails manufacturing and supply of fully machined components for the SUV (sports utility vehicle) segment. The total size of the order is worth around Rs 60-70 crore p.a. and Rs 400 crore for a period of 6 years starting from April 1, 2024," Happy Forgings stated in an exchange filing.

With this order, the company said it will establish its presence in the passenger vehicles (PV) segment as it aims to diversify the sectoral revenue mix further both in domestic as well as exports markets.

Further, the auto component manufacturer mentioned that the order endorses its capabilities in providing quality and high-precision value added machined products for BS6 applications.

Ashish Garg, Managing Director at Happy Forgings, said, "This order win represents a significant milestone, marking our entry into the PV market segment within the automotive industry. This development is particularly noteworthy as the order comes from a major Indian automobile manufacturer renowned for its diverse range of passenger vehicles, including SUVs."

Looking ahead, the company anticipates that the passenger vehicles segment will make a meaningful contribution of upto 8-10 per cent of the total revenues in the future, Garg added.

During the third-quarter (Q3 FY24), Happy Forgings registered a 16 per cent year-on-year (YoY) revenue growth despite of falling steel prices. Profit after tax (PAT) increased by 39 per cent.

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