Amic Forging - Amic Forging

📊 BSE: 544037 🏢 Castings & Forgings 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (Forging), hence segment-wise performance reporting is not applicable. Overall profitability showed significant growth with Net Profit Margin increasing by 167.43% YoY.

Profitability Margins

Operating Profit Margin improved significantly to 37.78% in FY2025 from 15.16% in FY2024 (a 149.20% increase). Net Profit Margin rose to 29.31% from 10.96% in the previous year, representing a 167.43% improvement due to a substantial increase in profit after tax.

EBITDA Margin

Operating Profit Margin (EBITDA-based) stands at 37.78%, up 149.20% YoY. This core profitability surge is attributed to operational efficiencies and increased scale.

Capital Expenditure

The company is pursuing capacity expansion and backward integration to enhance operational efficiency; however, specific historical or planned INR Cr values for CapEx are not disclosed in the provided documents.

Credit Rating & Borrowing

The company has significantly reduced its reliance on debt, with the Debt-Equity Ratio improving from 0.06 in 2024 to 'NA' (negligible) in 2025. Interest Coverage Ratio increased by 225.1% to 118.58 due to the repayment of borrowings and increased profits.

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material used in the forging process. While the exact percentage of total cost is not specified, the company identifies raw material volatility as a significant risk to profitability.

Capacity Expansion

The company plans continued investments in capacity expansion and backward integration to meet growing demand in automotive, aerospace, and defense sectors. Current installed capacity in MT is not specified.

Raw Material Costs

Raw material costs are subject to volatility, particularly steel prices. The company implements strategies to mitigate these risks, though specific procurement percentages are not disclosed.

Manufacturing Efficiency

Return on Net Worth increased to 35.48% (up 65.64% YoY), indicating high capital efficiency. However, Inventory Turnover Ratio decreased by 60.31% to 14.79 due to an increase in closing inventory.

📈 Strategic Growth

Growth Strategy

AMIC Forging plans to achieve growth by capitalizing on expanding sectors like automotive, aerospace, and defense. The strategy involves investments in backward integration, capacity expansion, innovation, and digital transformation to improve operational efficiency and capture market share from customers looking to reduce import reliance.

Products & Services

Forged components and products tailored for the automotive, aerospace, defense, construction, agriculture, and energy industries.

Brand Portfolio

AMIC Forging Limited.

New Products/Services

The company is focusing on innovation and expansion into critical industries like defense and aerospace, though specific new product revenue contributions are not disclosed.

Market Expansion

Targeting expanding domestic and potentially international markets in critical sectors where customers are shifting toward localized production.

🌍 External Factors

Industry Trends

The forging industry is evolving with a focus on digital transformation, sustainability, and innovation. There is a significant shift toward localized production in critical industries like defense and aerospace, which AMIC Forging is positioned to leverage.

Competitive Landscape

The industry is highly competitive and capital-intensive, requiring significant investment in machinery and technology, which acts as a barrier for smaller entrants.

Competitive Moat

The company's moat is built on its presence in high-entry-barrier sectors like aerospace and defense, and its strategy of backward integration which provides cost leadership and quality control.

Macro Economic Sensitivity

The company is sensitive to the growth of the Indian manufacturing sector and GDP, particularly in the automotive and infrastructure segments.

Consumer Behavior

Increased demand for localized and high-quality forged components in critical infrastructure and defense sectors.

Geopolitical Risks

Global supply chain shifts toward localized production present an opportunity for the company to capture business from customers reducing import reliance.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with the Companies Act, 2013 and maintains cost records as specified under section 148(1). It has implemented audit trail (edit log) facilities in its accounting software as per statutory requirements.

Legal Contingencies

The company reports that there are no pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (steel) and skilled labor shortages are identified as the primary business risks that could impact margins by over 25% if not managed.