The contract spans 7 years, extending until FY32, with supplies set to commence in Q3FY25 reaching a full volume ramp-up by Q4FY26. Peak annual sales (assuming fully ramped up volumes) can exceed around Rs 50 crore p.a. with a cumulative value estimated at approximately Rs 320-350 over the contract’s duration.

Ashish Garg, managing director, Happy Forgings, said, “We are pleased to announce a significant milestone in our partnership with a global OEM to supply components for their E Axle program designed for Electric SUVs. Being selected as a trusted supplier for Electric SUV components reaffirms our expertise and manufacturing prowess. We are proud of this opportunity and confident in our ability to execute this contract successfully.

As we move forward, we remain committed to upholding the highest standards of quality, reliability, and customer satisfaction. Our strategic focus on driving innovation and operational excellence remains unwavering. We believe that these initiatives will further solidify our position as a preferred supplier in the global marketplace. We are dedicated to continuously enhancing our offerings and strengthening our partnerships to drive mutual growth and success.”

Happy Forgings is principally engaged in the manufacturing of forgings and related components.

Happy Forgings reported 39.2% increase in standalone net profit to Rs 57.90 crore on 16.2% rise in revenue from operations to Rs 341.99 crore in Q3 FY24 over Q3 FY23.

The scrip rose 1.52% to end at Rs 956.15 on Thursday, 2 May 2024.