MM Forgings posts healthy Q3FY22 numbersMMFL - 893 Change: 21.10 (2.42 %)
News: MM Forgings posted healthy numbers with topline for the quarter coming in at Rs.285.8 crore, up 12.4% QoQ. EBITDA in Q3FY22 was at Rs.56.1 crore, up 18% QoQ with corresponding EBITDA margins at 19.4%, up ~120 bps QoQ. PAT for the quarter was at Rs.31 crore, up 12% QoQ.
Views: The performance in Q3FY22 is largely expected to exceed our FY22E estimates, especially on the profitability front. EBITDA margins were up 116 bps QoQ, primarily tracking increase in gross margin by ~275 bps, which was partially mitigated by higher other overhead costs. With the company being a key beneficiary of CV cyclical upswing both domestic & globally, we remain positive on the stock.