Founded on the tradition and philosophy of steadfast commitment to achieving "Total Customer Satisfaction" through excellent quality, on time deliveries and competitive pricing, the Company has grown steadily in strength and stature to attain its present recognition of being one of the largest exporter or Forgings in India in its product range and has created a niche ill the International Market.

M M Forgings is a major player in closed die forgings for export markets. The company forges anything and everything in the range of 300 kg to 60 kg.

Standalone September 2018 quarter results

For the quarter, it registered 58% jump in sales to Rs 224.48 crore. OPM fell 130 basis points to 19.3% which saw OP rise 48% to Rs 43.41 crore.

Other income grew 6% to Rs 3.10 crore and interest cost jumped 79% to Rs 5.24 crore. As depreciation grew 31% to Rs 13.75 crore, PBT went up 47% to Rs 27.53 crore.

Tax grew 28% to Rs 6.25 crore, after which PAT jumped 53% to Rs 21.28 crore.

Standalone six month results

For the six months, it registered 58% jump in sales to Rs 425.05 crore. OPM fell 50 basis points to 19.7% which saw OP rise 54% to Rs 83.61 crore.

Other income fell 24% to Rs 5.12 crore and interest cost jumped 52% to Rs 8.89 crore. As depreciation grew 31% to Rs 27.50 crore, PBT went up 53% to Rs 52.34 crore.

Tax grew 53% to Rs 12.50 crore, after which PAT jumped 53% to Rs 39.84 crore.

For the quarter, it registered consolidated sales of Rs 230.98 crore. PBT stood at Rs 27.02 crore and PAT was at Rs 20.77 crore.

For the six months, it registered consolidated sales of Rs 438.40 crore. PBT stood at Rs 52.03 crore and PAT was at Rs 39.53 crore.

The figures 2018 are not strictly comparable as the subsidiary company (DVS Industries Pvt LId) was acquired during the current year only and hence the figures of the earlier year does not include the performance for the said subsidiary company.

FY 2018 results

For FY 2018, it registered a 31% rise in sales to Rs 600.91 crore. OPM improved 60 basis points to 20.7% which saw OP rise 34% to Rs 124.61 crore.

PBT went up 49% to Rs 82.09 crore. PAT jumped 58% to Rs 68.51 crore.

M M Forgings acquired DVS Industries Private Limited, a leading manufacturer of crankshafts for commercial, agriculture and off-highway vehicles, for a sum of Rs 4.50 crore.

With this acquisition, M M Forgings will enhance synergies between it's wide ranging capabilities in forgings and machining, and DVS Industries' long standing expertise in machining of crankshafts

Incorporated in i 992, DVS Industries (with paid-up share capital currently at around Rs 1.59 crorc and turn-over of around Rs 13.17 crore in FY 2017) is a north Indian based player with its manufacturing unit located in Pant Nagar. Uttarakhand. DVS Industries is well equipped with modern manufacturing facilities and experience supplying over 2 million crankshafts.

The largest Exporter of Steel Forgings from Southern India

M M Forgings today is the largest Exporter of Steel Forgings from Southern India. The company continues to be one of the largest exporters of forgings from India and has received 23 consecutive Annual Awards from The Engineering Exports Promotion Council since 1989. Most of the company's forgings are exported to North American and European markets to major OEMs and Tier 1 Companies.

In expansion mode

MM Forgings has drawn up an 18-month expansion plan involving a capital outlay of Rs 250 crore. It has already started the process and it should be completed by December 2018. This is on top of the just concluded Rs 350 crore production capacity addition at all the three units in Tamil Nadu.

MM Forgings, which caters mostly to the automobile sector, has units at Oragadam near Chennai, Singampunari near Madurai and Viralimalai near Tiruchi. Currently, the company has a production capacity of 65,000 tonnes per annum and this would be increased to 75,000 tonnes per annum. In the latest expansion which happened over a period of 30 months, the company's production capacity had increased to 65,000 tonnes from 45,000 tonnes.

The expansion cost would be met mostly through internal accruals and debt in the ratio of 20:80. Out of the Rs 250 crore, Rs 50 crore had been set aside for capacity addition and Rs 200 crore for machining shop, export components, new products and markets, among others.

Valuation

The stock trades at Rs 599.