Happy Forgings margins will be around 28-30% going forward: MD

economictimes.indiatimes.com:

Ashish Garg, MD, Happy Forgings, says “exports have risen from around Rs 50 crore in FY21 to almost Rs 300 crore this financial year. It has grown almost 6x and it was 3.7% last year in H1 we have clocked almost 21% as direct exports. So, we will be closing at about 20% direct exports this year. And going forward, we are looking between 27% and 28% going forward in the next financial year.”
Happy Forgings has seen substantial growth over the last few years. Could you help us understand in terms of what worked well for the company and what is the sustainable growth trend that you are expecting?
Ashish Garg: The company is able to perform at a CAGR growth of almost 25% in terms of EBITDA. So, it is not just the three years performance, if you look at the performance for the last 10 years, it has been very stable and in terms of numbers, we are improving our EBITDA margins and EBITDA per tonne on quarter on quarter basis because of the machining content in the business. Today almost 85% of the revenues are coming from complete machine products, not only the forged products which is the highest amongst our listed peers and also the value addition in the industrial business and the exports picking up is helping us.

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Let us scratch the point on exports further because one of the key contributors now is exports as that has seen a substantial jump from contributing in single digit in FY24, export contribution has jumped to 13%. What is the outlook on exports from here on and