MM Forgings - Strong Growth On The Anvil; Commercial Vehicle Cyclical Recovery Play: ICICI Direct
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ICICI Direct Report
MM Forging Ltd. is a prominent forging player serving India, Europe and U.S. markets (FY21 geographical mix – domestic 50%, exports 50%).
MM Forgings posted decent Q1 FY22 results.
Standalone revenue decline was limited to 16.2% QoQ at Rs 239 crore versus more than 50% medium and heavy commercial vehicle volume decline domestically; largely aided by exports.
Ebitda margins were down ~170 basis points QoQ to 18.1%, tracking negative operating leverage; gross margins rose ~100 bps sequentially.
Consequent profit after tax declined ~21% sequentially to Rs 24 crore.
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