- 26 May 2022
- ICICIdirect Research
MM Forgings reports healthy performance in Q4FY22
MMFL - 597 Change: -2.65 (-0.44 %)News: MM Forgings posted a healthy performance in Q4FY22 with topline for the quarter coming at | 313.6 crore up 10% QoQ. EBITDA in Q4FY22 was at | 56.5 crore, flat QoQ with corresponding EBITDA margins at 17.8% down ~160 bps QoQ. PAT for the quarter was at | 29.2 crore, down 6% QoQ. EBITDA margins were down QoQ primarily tracking decrease in gross margin by ~85 bps which was further aggravated by higher other overhead costs. It also declared a dividend of | 6/share for FY22
Views: Gross margin decline for the quarter was lowest among its peers who faced ~160-200 bps decline. The company's performance for the full year was broadly on expected lines as per the published numbers with EPS for FY22 coming in at | 46.3/share (trailing PE at 17.5x). The company generated ~| 150 crore as cash-flow from operations (CFO) with FCF placed at ~| 40 crore. With the company being a key beneficiary of CV cyclical upswing both domestic & globally, we remain positive on the stock
Impact: Positive