Vidyashankar Krishnan, VC & MD, MM Forgings is upbeat on the second half and is hopeful that Q2 performance being better than Q1. With the likely pickup in the CV market, the company should be doing close to around 65,000 tonnes in volumes this year and revenues around Rs 1100 crore, he said.
M Forgings reported a good set of Q2 numbers, revenues were up 81 percent at Rs 273.1 crore versus Rs 151 crore for the same quarter last fiscal. The year-on-year (YoY) EBITDA was up 84 percent at Rs 49.25 crore versus Rs 26.73 crore and margins were up at 18 percent versus 17.8 percent. The YoY PAT too was up at Rs 26.5 crore versus Rs 5.42 crore.
To discuss the earnings and the outlook in detail, CNBC-TV18 caught up with the Vidyashankar Krishnan, VC & MD, MM Forgings.
Vidyashankar is hopeful of the second half also being good. He said they would end the fiscal year with volumes between 60,000 and 65,000 tonnes and is also hopeful of crossing the landmark four-figure mark in terms of revenues. “Year on year, if we look at H2 of the previous year, and H1 of three of this year, we have already clocked Rs 1,000 crore. So this fiscal crossing Rs 1,000 crore in terms of revenue looks to be reasonable to expect,” he added.
Doing revenues of around Rs 130-150 crore per month would likely happen in Q2, Q3 of next fiscal because it is dependent on the economy at large. "This second half should be much stronger than the first half and also with the likely pickup in the CV market, although Tata market is a little bit down, we should be doing close to around 65,000 tonnes in volumes this year. The voice is pretty much positive on the numbers for this year. And therefore, numbers for this year should be well into the four figures, around Rs 1,100 crore,” he added.