Tapping Revenue Streams With Higher Utilisation

SHOWING SIGNS OF RECOVERY FROM THE PANDEMIC INDUCED SLOWDOWN, MM FORGINGS. IS CONFIDENT OF GROWTH WITH HIGHER ASSET UTILISATION. PRATEEK PARDESHI LINKS THE RECENT PERFORMANCES WITH THE VISION TO OPEN UP NEW REVENUE STREAMS.

- PRATEEK PARDESHI

The aftermath of the pandemic, closed die forging provider, MM Forgings Ltd. is regaining traction. Confident of opening up new revenue streams with streamlined and well-oiled procedures and practices, it will leverage an in-sync human capital to realise its full potential. A testimony to efforts fructifying is the recent acknowledgement by Ashok Leyland who awarded the company with the 'Silver Award' in the Cost Category, in 2021. Its expansion spree is also evident from recent acquisitions like that of Cafoma Autoparts for an estimated valuation of Rs.33 crore known to include a rupees five crore subordinated debt. Averred Vidyashankar Krishnan, Managing Director, MM Forgings, "This second half should be much stronger than the first half and also with the likely pickup in the CV market. We should be doing close to around 65,000-tonne in volumes this year."

With cautious optimism, the company as per recent reports could realise a revenue stream of Rs.1,100 crore for FY2021-22 with an incremental hike in projections in the years thereafter. As per the company's investor conference call, the company hopes to increase volumes from 60-tonne to 80-85,000-tonne before scaling up to 1-1.2 lakh tonnes in FY2023-24. It is banking on sweating the new press lines in comparison to the old press lines. The company also hopes to benefit from the growing EV exposure and expectations of the domestic business contributing a higher degree than the exports business compared to the contrasting equation as of current.