M M Forgings Limited Reports Q3FY25 Financial Results

Chennai, India – February 3, 2025
M M Forgings Limited (NSE: MMFL-EQ; BSE: 522241) announced its unaudited financial results for Q3FY25, along with other key corporate developments, including the appointment of a new independent director and updates on an ongoing amalgamation process.

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Key Financial Highlights (Standalone)​

• Revenue Decline: Q3FY25 revenue fell to ₹364.24 Cr, a 6.1% YoY decline due to sluggish domestic demand and export market uncertainties.
• EBITDA Growth: Despite revenue challenges, EBITDA increased 6% YoY to ₹242.97 Cr for YTD Dec’24, supported by operational efficiencies.
• Net Profit Margins: PAT slightly declined due to higher finance costs, which rose from ₹29.30 Cr in YTD Dec’23 to ₹46.13 Cr in YTD Dec’24, reflecting higher INR borrowing costs.

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Key Financial Highlights (Consolidated)​

• Export Performance: Export sales for YTD Dec’24 grew 9% YoY to ₹440.30 Cr, contributing 39.7% of total sales.
• Cost Increases: Higher depreciation and borrowing costs led to a YoY decline in PAT from ₹97.30 Cr to ₹88.53 Cr.

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Segment-Wise Performance​

• Geographic Distribution: Exports accounted for 39.7% of revenue, while domestic sales formed 60.3%.
• End-User Segments:
  • Commercial Vehicles: 79.5%
  • Passenger Vehicles: 11.3%
  • Tractors: 8.5%
  • Others: 0.7%

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Corporate Announcements​

1. Appointment of Independent Director​

• Smt. Shyamala S (DIN: 10895827) has been appointed as a Non-Executive Independent Director effective March 31, 2025, replacing Smt. Kavitha Vijay, whose tenure concludes the same day.
• Background: Shyamala S brings 24 years of experience in the IT industry, specializing in project management, digital transformation, and customer relationship management.

2. Amalgamation of DVS Industries Private Limited​

• The wholly owned subsidiary, DVS Industries Private Limited, is set to merge with M M Forgings Limited.
• New Merger Date: The appointed date for amalgamation has been preponed to April 1, 2024, from April 1, 2025.
• Strategic Benefits:
  • Operational Synergies
  • Reduction in Compliance Costs
  • Better Asset Utilization
• No Impact on Shareholding Pattern: Since DVS Industries is a wholly owned subsidiary, no new shares will be issued.

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Management Commentary​

Shri Vidyashankar Krishnan, Chairman & Managing Director, stated:

“Despite headwinds in the domestic and export markets, MM Forgings has demonstrated resilience. Our focus on innovation, cost management, and market expansion has enabled steady growth. The amalgamation of DVS Industries will streamline operations and improve profitability.”

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Strategic Outlook​

• Focus on International Expansion: Increasing export share to sustain long-term revenue growth.
• Capex & Debt Management: Addressing rising interest costs and optimizing capital structure.
• Operational Efficiency: Leveraging the amalgamation to improve margins.

Conclusion​

While short-term headwinds persist, MM Forgings’ strategic investments, operational efficiency, and export growth position it well for long-term stability and expansion.