Slides
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INVESTOR PRESENTATION Q3 & 9MFY26
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2 SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), prepared by Happy Forgings Limited (the “Company”), are intended solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world- wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
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Q3 & 9MFY26 Performance Highlights
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4 MESSAGE FROM THE MANAGING DIRECTOR Mr. Ashish Garg Managing Director “We are pleased to have delivered a strong performance in Q3FY26, reflected in continued scale-up in revenues and an improving profitability trend. The quarter was marked by peak quarterly EBITDA and PAT margins, underscoring the operating leverage and execution strength of our business model. We expect this momentum to carry into Q4FY26 and extend into FY27. Volumes grew by 13.8% YoY during Q3FY26, while the revenue from operations stood at Rs.391 Crs, registering a 10.4% YoY growth. This growth was driven by healthy demand across key domestic end-markets, including Commercial Vehicles, Farm Equipment, and Passenger Vehicles, which more than offset the relatively weaker conditions in export markets. During Q3FY26, profitability remained strong, with Gross Margin at 58.9% and EBITDA and PAT Margins at peak levels of 30.8%, and 20.2% respectively, resulting in a 22.3% YoY growth in PAT. For the 9MFY26 period, margins expanded meaningfully, with Gross Margin and EBITDA Margin improving by ~125 bps, while PAT Margin improved by ~100 bps on an adjusted basis, reflecting sustained improvements in operating efficiency. Our capacity expansion initiatives continue to progress as planned. During Q3FY26, we increased machining capacity to 68,000 MT, in anticipation of an uptick in volumes. We are commissioning the 10,000-ton forging presses in the current quarter and plan to add 4,000-ton press in H1FY27, which will further augment forging capabilities and support future growth. Additionally, we have signed a long-term lease for 80 acres of land to set up a captive solar power plant, supporting our ESG objectives while also improving long- term cost efficiency. Looking ahead, we expect domestic demand momentum to remain positive. With the recent developments related to tariffs and trade agreements, we expect tariff-related headwinds to moderate, which should support better performance in export markets. We currently have visibility of incremental business of ~Rs.800 Crs at peak annual rate, providing confidence in sustaining our growth momentum. A significant portion of this incremental business is aligned with our core diversification focus areas like Industrials, Passenger Vehicles, and Exports, which are expected to scale up within the overall revenue mix and further strengthen diversification of our business. Our balance sheet remains very strong, supported by robust operating cash flow generation of ~Rs. 315 Crs during 9MFY26, driven by efficient working capital management. This has resulted in enhanced liquidity, with cash and financial investments now exceeding Rs. 400 Crs, providing us with significant financial flexibility to support growth, capex, and long-term value creation.”
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Realisation/Kg Rs. 240 (-3.0%) yoy Q3 & 9MFY26 PERFORMANCE HIGHLIGHTS 5 FG Volume 16,323 MT +13.8% yoy Q3FY26 9MFY26 Revenue 391 Crs +10.4% yoy Gross Profit 230 Crs +12.2% yoy Gross Margin: 58.9% EBITDA 120 Crs +18.7% yoy EBITDA Margin: 30.8% PAT 79 Crs +22.3% yoy PAT Margin: 20.2% Realisation/Kg Rs. 245 (-1.3%) yoy FG Volume 45,807 MT +7.6% yoy Revenue 1,122 Crs +6.2% yoy Gross Profit 663 Crs +8.5% yoy Gross Margin: 59.1% EBITDA 337 Crs +10.8% yoy EBITDA Margin: 30.1% PAT 218 Crs +9.2% yoy (+11.8% on adj. basis*) PAT Margin: 19.4% Note: Financials in Rs. Crs. * Adjusted YoY PAT growth after excluding post-tax insurance income of Rs. 4.8 Crs
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6 VOLUME & REALISATION TREND 165 201 232 243 248 FY21 FY22 FY23^ FY24* FY25 35,534 42,777 50,656 55,379 56,906 Finished Goods Volume (MT)Realisation/Kg (Rs.) Finished Goods Volume (MT) 9MFY26 vs 9MFY25 (Volume and Realisation) FG Volume (MT) Realisation/Kg (Rs.) Particulars 9MFY25 42,564 248 YoY +7.6% (-1.3%) 9MFY26 45,807 245 ^ FY23 realisation excludes prior period income * FY24 adjusted for higher realization on account of air freight costs recovery on one order Realisations remained broadly stable and range-bound, even as raw material prices softened during the period
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7 PROFIT & LOSS STATEMENT QUARTERLY NINE MONTHLY ANNUAL Consolidated P&L (Rs. Crs) Q3FY26 Q3FY25 YoY Q2FY26 QoQ 9MFY26 9MFY25^ YoY FY25^ Revenue from Operations 391 354 10.4% 377 3.7% 1,122 1,057 6.2% 1,409 Raw Material Cost & Change in Inventories 161 149 150 460 446 592 Gross Profit 230 205 12.2% 228 1.2% 663 611 8.5% 817 Gross Profit Margin 58.9% 58.0% 91bps 60.3% (143)bps 59.1% 57.8% 127bps 58.0% Employee Cost 34 33 34 100 93 125 Other Expenses 76 71 78 225 214 286 EBITDA 120 101 18.7% 116 4.0% 337 304 10.8% 407 EBITDA Margin 30.8% 28.6% 213bps 30.7% 8bps 30.1% 28.8% 125bps 28.9% Depreciation 22 19 22 65 57 77 EBIT 98 82 19.0% 94 4.0% 273 248 10.2% 330 Other Income 8 7 6 25 27 37 EBIT Incl. Other Income 106 89 19.3% 100 5.6% 298 275 8.2% 367 Finance Cost 2 2 2 7 5 8 Profit Before Tax 104 87 19.4% 99 5.1% 291 270 7.8% 360 Profit Before Tax Margin 26.5% 24.5% 199bps 26.1% 37bps 25.9% 25.5% 38bps 25.5% Tax 25 22 25 73 70 92 PAT 79 65 22.3% 73 7.5% 218 200 9.2% 267 PAT Margin % 20.2% 18.2% 196bps 19.5% 71bps 19.4% 18.9% 53bps 19.0% EPS (Diluted) 8.36 6.84 7.78 23.09 21.18 28.37 ^ Other income for the period 9MFY25 and FY25 includes insurance income of Rs. 4.8 Crs (on a post-tax basis)
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8 OVERVIEW OF REVENUE SEGMENTS 12% 12% 88% 88% 9MFY25 9MFY26 Forged Forged & Machined PRODUCT MIX SECTOR MIX GEOGRAPHY MIX* 37% 5% 33% 11% 14% 38% 4% 32% 12% 14% 73% 11% 15% 71% 10% 19% Automotive - Commercial Vehicles Non-Automotive - Farm Equipments Non-Automotive - Off Highway Vehicles Non-Automotive - Industrials Automotive - Passenger Vehicles 9MFY25 9MFY26 9MFY25 9MFY26 Direct Exports Domestic Deemed + Indirect Exports *Percentages are rounded off; totals may not add up to 100%. During the period, changes in Incoterms for certain customers resulted in a reclassification of revenues from Direct Exports to Deemed and Indirect Exports.
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Capacity Updates 57,000 68,000 FY25 9MFY26 ▪ Additional 9,800 MT of machining capacity added during Q3FY26 ▪ 10,000-ton press commissioned in the current quarter; 4,000-ton press to be commissioned in H1FY27 ▪ Total Capex of ~Rs. 300 Crs incurred for the period 9MFY26 ▪ Investments in heavy component forging capacities remain on schedule; commissioning expected in FY27, with production commencing by the end of FY27 o Setting up one of the largest facilities of its kind in Asia and the second-largest globally o Enables expansion into the higher-weight segment (components weighing 250–3,000 kilograms) o Will cater to heavy forged component requirements in the Industrials and Farm Equipment segments BUILDING CAPABILITIES FOR RESILIENT AND SUSTAINABLE GROWTH 9 Forging Capacity (MT) Utilisation (%) Machining Capacity (MT) Utilisation (%) 127,000 127,000 FY25 9MFY26 57% 60% 83% 82% Installed Capacity and Utilisation Note: Figures represent Annual Installed Capacity as on the last date of the relevant period. Capacity utilisation is based on the average available capacity for the period.
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STRONG FUNDAMENTALS WITH HEALTHY RETURNS AND LOWER LEVERAGE 14.4% 19.9% 23.5% 18.7% 15.2% 14.6% FY21 FY22 FY23 FY24 FY25^ H1FY26 ROE % 17.5% 21.8% 26.2% 22.7% 18.8% 18.1% FY21 FY22 FY23 FY24 FY25^ H1FY26 ROCE % 1.2 1.3 1.4 1.3 1.1 1.0 FY21 FY22 FY23 FY24 FY25 H1FY26 GROSS FIXED ASSETS TURNOVER 0.8 1.0 0.6 0.1 0.0 (0.0) FY21 FY22 FY23 FY24 FY25* H1FY26 NET DEBT/EBITDA * Net debt computed by including short term liquid mutual fund investments and short-term fixed deposits along with cash and bank balances ^ Excluding post-tax insurance income of Rs. 4.8 Crs 10 Healthy internal cash accruals support organic growth with minimal reliance on external funding, reflected in declining Net Debt/EBITDA
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Company Overview
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Incorporated in July 1979, Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components Manufactures high precision products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products and valve bodies catering to different industries and customers 3 Manufacturing Facilities 46 years of Manufacturing Excellence 1,27,000 MT Forging capacity* 68,000 MT Machining capacity* 2nd Largest Producer of commercial vehicle and high horse-power industrial crankshafts in India 4th Largest Engineering-led manufacturer of complex and safety-critical, heavy forged and high-precision machined components in India Diversified Customer Base Across Indian & Global OEMs A LEGACY OF EXCELLENCE 12* Installed capacity as on Dec 31, 2025 About Us OUR VISION To be amongst the top 10 forging and machining companies globally OUR MISSION ▪ State-of-the-art Technology ▪ Deliver more than promised ▪ Respect and encourage people ▪ Inspire innovation and creativity ▪ Care for the environment and society AA/STABLE CRISIL and ICRA Credit Rating Rs. 1,409 Crs FY25 Revenue 28.9% FY25 EBITDA Margin
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BUSINESS EVOLUTION SPANNING 4 DECADES 13 1979 Established with a single unit for manufacturing crank arms 2005 Heavy-duty hammers installed for oil engine and motor parts production 2006 Commenced operations at Kanganwal Facility II 2007 Crossed ₹100 Crs in revenue. 2008 Initiated installation of 8,000 tonne forging press and model grinding for 4/6-cylinder crankshafts 2021 Commenced operations at the Dugri facility Installed the 3rd 8,000-tonne forging press line 2023 Crossed ₹1,000 Crs in revenue. Completed IPO and public market listing 2025 Installed and began operations of the 6,300-tonne press along with expansion in machining capacity 2024 Commenced supply of crankshafts for SUVs 14,000 2017 Commissioned the second 8,000- tonne forging press. 8,000 T 2nd 8,000 T 1st 3rd 8,000 T 2018 Crossed ₹500 Crs In Revenue Secured funding through the financial sponsor route from the India Business Excellence Fund III Rs. 500 cr Rs. 1,000 cr 2010-15 Expanded machining capacity and entered commercial vehicles and industrial segments Rs. 100 cr 2026 Commissioned the 10,000-tonne forging press line 10,000 2022 Installed eight dedicated crankshaft manufacturing lines. Commissioned the first 14,000 tonne forging press line
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14 Forging Fully automated forging press lines and hammers to produce high-quality forged products Metallurgical Facilities Equipped with a range of advanced metallurgical testing & analysis equipment to ensure highest quality in the forging manufacturing process Die Design & Manufacturing Latest technology and tools to offer a wide range of services, including design, prototyping, testing and manufacturing Inspection and Quality Control World class and most advanced metrology room to ensure the highest standards of quality Heat Treatment Facilities Equipped with the latest technology and equipment to provide precise and effective heat treatment processes for our products Machining Advanced software and equipment to ensure that our machining processes adhere to stringent tolerance levels FULLY INTEGRATED CAPABILITIES
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15 COMPLETE PROCESS FLOW Covered Raw Material Yard Metallurgical Testing LabBillet Cutting Section Forging Heat TreatmentMachining Control Cooling Standard Room Final Inspection Packaging & Dispatch
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MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (1/2) Front Axle Components Rear Axle Component Suspension Products Differential CaseCrankshaft Commercial Vehicles Passenger Vehicles Crankshafts Brake Flange E Axle Components Off-highway Vehicles Farm Equipment PinionCrankshaftAxle Shaft Crown Wheel Bucket Link Crankshaft 16
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MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (1/2) Power Generation Windmill Applications Oil & Gas Railways 17 Planetary CarrierOutput Shaft Housing Connecting RodPiston Pin Crankshaft Valve Bodies
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PAVING OUR PATH TOWARDS ACCELERATED VALUE CREATION Transition from a forging led player to a leading manufacturer of machined components in India In-house design capabilities & fungible production lines have led to a diverse product offering, continuous value addition Increasing global presence through increase in direct & indirect exports Increased wallet share from customers by offering additional products to existing customers Track record of consistently building capabilities and infrastructure with a focus on capital efficiency 18
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HIGH ENTRY BARRIERS Capital-intensive business that involves complex technology, machinery and systems acting as an entry barrier for smaller and unorganized players CAPITAL INTENSIVE BUSINESS Lengthy customer and product approval processes STRATEGIC RESILIENCE Global industry leaders are highly selective in qualifying new suppliers with respect to critical products given the high costs and risks of switching suppliers, especially where product reliability is critical PRODUCT RELIABILITY Difficulty in acquiring new customers without existing relationships SELECTIVE SUPPLIER DYNAMICS Importance of implementing and sustaining quality systems while providing critical & high precision components involving tight tolerances (e.g. tolerance for machined products ranges between 0.005 mm & 0.2 mm) PRECISION IN PRACTICE 19
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HAVE DEMONSTRATED THE ABILITY TO INSTALL AND OPERATE HIGH TONNAGE PRESSES AND PRECISION MACHINING 1,27,000 MT Total Forging Capacity* 68,000 MT Total Machining Capacity* 2nd Largest Producer of Crankshafts in India for Commercial Vehicle and High Horsepower Industrial applications 46 Years of Engineering Excellence Kanganwal I, Ludhiana (Started in 1995) Kanganwal II, Ludhiana (Started in 2006) Dugri, Ludhiana (Started in 2021) ▪ Second company in India to have 14,000 Tonne press ▪ The ability to forge heavier and complex parts up to 250 kgs to cater to different industries which require heavy and complex parts Continuous Investment in in- house infrastructure ▪ Facilities located near inland container depot facility in Ludhiana and Dedicated Freight Corridor (DFCs) provides cost and logistical advantages Strategic Location of Facilities ▪ Fungible product lines along with vertically integrated facilities helps drive diverse product offering, reduced operating costs and improve productivity Operating Efficiencies 20* Installed capacity as on Dec 31, 2025
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ARCHITECTS OF PROGRESS 21 Executive Directors Senior Management Paritosh Kumar Chairman & Managing Director ▪ 45+ Years of experience ▪ Founded Happy Forgings in 1979 ▪ B.A. from S.C. Dhawan Government College, Ludhiana (P.U.) Ashish Garg Managing Director ▪ 18+ Years of experience ▪ Joined Happy Forgings in 2006 ▪ Bachelor’s degree in science (accounting and finance) and a Master’s degree in science (manufacturing systems engineering), University of Warwick, UK Megha Garg Whole-time Director ▪ 9+ Years of experience ▪ Joined Happy Forgings in 2016 ▪ Bachelor’s degree in science (economics) from the University of Nottingham, UK Narinder Singh Juneja Chief Operating Officer ▪ 50+ Years of experience ▪ Postgraduate diploma in mechanical engineering, Y.M.C.A. Institute of Engineering, State Board of Technical Education, Haryana Pankaj Kumar Goyal Chief Financial Officer ▪ 23+ Years of experience ▪ Joined Happy Forgings in 2013 ▪ Fellow Member of Institute of Chartered Accountants of India Patwinder Singh Chief Operating Officer ▪ 29+ Years of experience ▪ Joined Happy Forgings in 2016 ▪ Bachelor’s Degree in Science, Guru Nanak Dev University and MBA from CSM Institute of Graduate Studies Sushant Pustake Chief Operating Officer ▪ 40+ Years of experience ▪ Joined Happy Forgings in 2025 ▪ Bachelor’s degree in metallurgical engineering, College of Engineering, Pune Mangesh Shantaram Purandare Chief Marketing Officer ▪ 30+ Years of experience ▪ Joined Happy Forgings in 2019 ▪ Bachelor’s degree in Engineering and MBA from University of Pune G.S. Sandhu Chief Human Resource Officer ▪ 30+ Years of experience ▪ Joined Happy Forgings in 2019 ▪ MBA in HR and Alumnus of ISB (Future CHRO Programme)
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NAVIGATING THE PATH TO SUSTAINABLE GROWTH 22 Use in-house capabilities for product development to tap into industrial market opportunities Enter lightweight forging and machining for passenger vehicle sector Capitalise on increasing demand from international markets to grow exports Expand wallet share and acquire new business by leveraging existing OEM relationships and adding new customers Expand capacity at existing manufacturing facilities Continue to reduce operating costs and improve operational efficiencies Grow inorganically through strategic acquisitions and alliances Growth at Happy Forgings has never been about chasing momentum. It is about making deliberate choices that create value over the long term.
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Historical Financial Statements
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PROFIT & LOSS STATEMENT 24 Profit and Loss (Rs. Crs) 9MFY26 FY25^ FY24 FY23 FY22 Revenue from Operations 1,122 1,409 1,358 1,197 860 Raw Material Cost & Change in Inventories 460 592 597 551 388 Gross Profit 663 817 762 645 472 Gross Profit Margin (%) 59.1% 58.0% 56.1% 53.9% 54.8% Employee Cost 100 125 114 88 69 Other Expenses 225 286 260 217 172 EBITDA 337 407 388 341 231 EBITDA Margin (%) 30.1% 28.9% 28.5% 28.5% 26.8% Depreciation 65 77 65 54 38 EBIT 273 330 323 287 193 Interest 7 8 12 12 7 Other Income 25 37 13 6 6 Profit Before Tax 291 360 324 280 192 Tax 73 92 81 71 50 PAT 218 267 243 209 142 PAT Margin (%) 19.4% 19.0% 17.9% 17.4% 16.5% EPS (Diluted) 23.09 28.37 26.75 23.32 15.90 ^ In FY25 other income includes insurance income of Rs. 6.4 Crs. (Rs. 4.8 Crs on a post-tax basis included in PAT)
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BALANCE SHEET 25 Assets (Rs. Crs) Sep 30, 2025 Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Non-Current Assets 1,352 1,297 1,144 836 704 Property, Plant and Equipment 934 900 742 677 455 Capital work-in-progress 226 116 122 75 212 Intangible Assets 10 8 1 1 2 Intangible assets under development 8 6 5 - - Other Financial Assets & investments 38 151 204 31 8 Other Non-Current Assets 137 115 70 52 28 Current Assets 949 919 742 489 425 Inventories 225 232 224 170 184 Trade Receivables 380 427 357 308 222 Cash and Cash Equivalents 14 13 0.6 0.01 0.02 Bank Balances 86 124 121 0.3 1 Other Financial Assets 231 109 8 1 3 Other current assets 12 14 31 10 14 Assets Held for Sale - - - 1 1 Total Assets 2,301 2,215 1,886 1,326 1,130 Equity & Liabilities (Rs. Crs) Sep 30, 2025 Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 EQUITY 1,959 1,850 1,612 988 788 Equity Share Capital 19 19 19 18 18 Other Equity 1,940 1,831 1,594 970 770 Non-current liabilities 40 39 32 81 97 Borrowings - - - 58 74 Deferred tax liabilities 40 39 32 23 23 Current liabilities 301 326 242 257 245 Borrowings 193 228 143 160 166 Trade Payables 42 45 56 48 44 Other Financial Liabilities 39 25 28 26 20 Other Current Liabilities 20 19 9 8 5 Provisions 5 5 4 4 3 Liabilities for current tax (net) 2 4 2 11 6 Total Equity & Liabilities 2,301 2,215 1,886 1,326 1,130
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CASH FLOW STATEMENT 26 Cash Flow Statement (Rs. Crs) Sep 30, 2025 Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Profit before tax 187 360 324 280 192 Adjustments for depreciation and other items 36 65 72 71 40 Operating profit before working capital changes 223 424 396 351 232 Changes in working capital 41 -49 -123 -78 -109 Cash generated from operations 265 376 273 273 123 Direct taxes paid (net of refund) -47 -83 -84 -64 -43 Net cash from operating activities 217 292 189 209 80 Net cash from investing activities -149 -320 -470 -172 -166 Net cash from financing activities -67 40 281 -37 83 Net change in cash and cash equivalents 1 12 0.6 -0.01 -3 Improvement in working capital efficiency during H1 FY26 led to strong cash flow conversion
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Impact Beyond Performance
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GOVERNANCE - A DIVERSE BOARD WITH STRONG INDEPENDENT DIRECTORS Age Years of Experience Director (Name, Age, Experience) 28 Key Board Highlights Diverse Board in terms of professional and industry experience, age and gender 50% Independent Directors (3 out of 6) 2 Female Directors out of 6 3 committees out of 5 headed by Independent Directors (Audit, NRC and SRC) ~96% attendance of the Board members in Board meetings in FY 2025 ~170+ years of collective experience of Board Members ~100 Years of collective experience of Independent Directors ~57 years average age of the Board Members Atul Behari Lall Independent Director Rajeswari Karthigeyan Independent Director Ravindra Pisharody Independent Director Area of Expertise 64 30+ 55 30+ 70 ~40 Key Board Memberships • Business Strategy & Operations • Electronics manufacturing services industry • Credit Ratings & appraisal • Financial and economic research • Sales & marketing • Strategy development • Diverse industry experience • Current: Dixon Technologies (MD & Vice Chairman), Max Estates Limited and Aditya Infotech Ltd. • Past: Member of Technical Evaluation Committee for Electronic Manufacturing Services • Current: Craftsman Automation, Sunbeam Lightweighting Solutions Pvt. Ltd. and Belstar Microfinance • Past Role: Associate Director – CRISIL Ratings • Current: Savita Oil Technologies Ltd., Muthoot Finance, Bonfiglioli Transmissions and Kwality Walls (India) Limited • Past: Tata Motors Ltd., Castrol India and Kinara Capital
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ESG - KEY INITIATIVES Director’s Statement “We are at a crucial juncture in our organization's growth, dedicated to implementing robust frameworks and procedures that transform our core values into tangible actions with measurable goals, demonstrating our commitment to delivering sustainable value to all stakeholders. To enhance our governance standards, we have prioritized diversity within our Board, ensuring a broad range of expertise, perspectives, and demographic representation to maintain transparency and accountability across our operations. We have established an ESG committee to develop a comprehensive strategy and execution plan, overseeing our progress against set targets and milestones. Mindful of our environmental impact, we have pledged to halve our Scope 1 and Scope 2 carbon emissions by 2030 and achieve 100% wastewater recycling by 2025. Our initiatives include increasing the proportion of renewable energy usage and implementing effective resource management practices such as rainwater harvesting and groundwater recharging. Additionally, we are committed to reducing wood-based disposable packaging by 50% by 2030, planting 10,000 trees by 2025, installing a 20MW solar plant by 2028, discontinuing the use of CBFS by 2027, and discontinuing the use of furnace oil by 2025. We strive to create a safe and supportive working environment for our employees, aiming to increase women's participation in our workforce and enhancing employee skills through expanded training and development programs. Additionally, we are boosting our investments in a wide range of CSR efforts focused on empowering vulnerable and marginalized sections of society. As a responsible organization, we are committed to developing and adopting best practices in ESG, aspiring to become a leader in our sector.” 29 ENVIRONMENT Energy Management Emissions Management Climate Strategy & Governance Waste Management & Product Stewardship Water Management SOCIAL Labour Practices Health & Safety Human Rights Diversity & Inclusion Community Relations GOVERNANCE ESG/Corporate Governance Supply Chain Management Risk Management Data Protection & Security
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ESG TARGETS AND COMMITMENTS Cover 100% of our workforce with skill development programs Lower LTIFR by 50% by 2030# Provide human rights and safety training to all raw material suppliers Conduct impact assessments for at least five CSR projects Social Link ESG performance to Board evaluation KPIs Introduce an ESG risk management framework Screen suppliers for sustainability alignment Strengthen policies on ethical conduct and compliance Governance Reduce Scope 1 and Scope 2 emissions by 50% by 2030# Achieve 100% Zero Liquid Discharge implementation across all sites Lower freshwater consumption by 35% by 2031-32# Install a 20 MW solar plant by 2028 Reduce non-hazardous waste by 30%# Participate in CDP Climate Change disclosure Environment 6.5 MW Green Power Generating Capacity 105,500 tCO2e Total GHG Emissions (Scope 1 and 2) 4.0 GJ/Lakh ₹ of Turnover Energy Intensity ~10,000 Saplings Planted Rs. 4.8 Crs CSR Expenditure ~13,300 Hours Cumulative Employee Training Hours 0.37 LTIFR Lost Time Injury Frequency Rate reduced from 0.55 compared to previous year 100% o Workforce Medical Coverage o Employees covered under PF, ESI and Gratuity o Grievance closure rate in 2024-25 # From Baseline values; *As of March 31, 2025 ~30 Years Average Experience of Directors 3 Independent Directors 2/6 Board Directors are Women 30
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31 Vocational Training & Livelihoods Healthcare Healthcare 39% Vocational Training & Livelihoods 29% Education 9% Children & Adolescents with Special Needs 5% Others 18% CSR Spend – FY2025 Total Spend – Rs. 4.8Cr CSR Spend Details Education Children & Adolescents with special needs Others Category Project / Organization funded ▪ Donated 7 vehicles for administration of emergency/support health services ▪ Dialysis Machines donated to Helpful NGO ▪ Operation Theatre installed at Civil Hospital ▪ Eco & Ultrasound machines donated to Shri Nav Durga Mandir Charitable Hospital & Trust ▪ Contribution to Bal Vikas Trust for infrastructure development for Vocational Training college for underprivileged girls ▪ Advanced stitching machines installed at polytechnic college ▪ Contribution to Indian Red Cross society (Future Tycoons project) ▪ Adoption of Primary School, Umedpur ▪ Funding Noble Foundation for education of underprivileged kids ▪ Funded “Women Next Door” for education of slum children ▪ Funding to Ludhiana Education Society for education and vocational training of deaf children ▪ Vocational rehabilitation center for visually impaired students ▪ Sponsored sports and other activities for “Ekjot Viklang Bachhon ka School” ▪ Solar Power Panels installed at a mega kitchen of Jagannath Food For Life ▪ Maintenance and upkeep of Public Park ▪ Installed 2 bio compost machines at Leh for Army ▪ Funding support to Dhyan Foundation & Krishan Balram Gaushala Pictures Gallery SOCIAL – CSR ACTIVITIES
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32 Dun & Bradstreet ‘Business Excellence Awards 2025’: Automobiles - OEM & Components (Mid-Corporate) Special Appreciation Award at Mahindra Supplier Excellence Awards - March 2025 Quality Performance Award FY24 for excellent performance in incoming parts quality by Ashok Leyland Gold award for “Superlative Performance in Agility” – 2024 Ashok Leyland Supplier Summit Received Next Level Quality award by Generac – 2023 (Received in 2024) Received Best Quality Award by Escorts Kubota Limited (2024) Received Supplier Excellence Award for “Quality Performance” by American Axle & Manufacturing - 2024 Received ‘Best Supplier Award’ at the Global supplier meet 2024 from TAFE Received the IATF 16949:2016 accreditation for manufacture of forged and machined components and excluding product design Dugri Facility “Excellence Award” by Escorts Kubota Limited Received the ISO 45001: 2018 & ISO 14001: 2015 accreditation for manufacture of forged and machined components Kanganwal Facility I Received IATF 16949:2016 accreditation for manufacturing of forged and machined components without product design responsibility and with the extended manufacturing site(s) for Kanganwal Facility I ‘Supplier Excellence Award’ for delivery performance at AAM (American Axle Manufacturing) India Supplier Event 2023 ‘Award for Outstanding Contribution in Gear Business’ at the Annual Supplier Conference 2023 organised by Eicher Engineering Components, VE Commercial Vehicles Received the ISO 14001:2015& ISO 45001:2018 accreditation for manufacture of forged and machined components and excluding product design Dugri Facility Received ‘The Entrepreneur & Leadership Award’ at the JCB Annual Supplier Conference 2023 Received a certificate of appreciation for supplier Agri machinery under ‘Business Excellence Process/ Digitalisation’ by Escorts Kubota Ltd 2022 2023 2021 2024 & 2025 AWARDS, ACCREDITATIONS AND RECOGNITIONS
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CERTIFICATIONS IATF 16949:2016 Quality Management System Certification for Automotive Suppliers ISO 9001:2015 Quality Management System ISO 45001:2018 Occupational Health & Safety Management System ISO 14001:2015 Environment Management System 33 ISO 9100:2018 Aerospace Quality Management System
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34 For further information, Please contact CIN: L28910PB1979PLC004008 Mr. Vikas Thakur E: investor.relations@happyforgingsltd.co.in T: +91 99159 51913 www.happyforgingsltd.com COMPANY INVESTOR RELATIONS ADVISOR CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Ms. Devika Shah E: jigar.kavaiya@sgapl.net / devika.shah@sgapl.net T: +91 99206 02034 / +91 99207 64659 www.sgapl.net