Balu Forge Industries Limited — PPTs, 08-04-2025: Investor Presentation

**Financial Highlights:**

Balu Forge Industries Ltd. reported a remarkable 73.91% year-on-year growth in revenue for Q3 FY25, amounting to INR 2,557.83 Mn, compared to INR 1,470.75 Mn in Q3 FY24. EBITDA surged 106.95% to INR 677.00 Mn, with margins improving to 26.47% from 22.24%. PAT experienced significant growth, up 134.09% to INR 590.06 Mn, resulting in a PAT margin of 22.24%, an increase from 16.95%. For the nine-month period, revenue rose 64.03% to INR 6,539.71 Mn, while PAT reached INR 1,411.67 Mn, up 116.34%.

**Strategic Initiatives and Growth Drivers:**

The company focuses on capacity expansion with the installation of a new state-of-the-art integrated forging and machining facility in Belgaum, enhancing its production capabilities significantly. The adoption of advanced 7-axis CNC machining technology bolsters high-precision component production, targeting high-margin sectors like aerospace, defence, and railways.

**Business Developments:**

Balu has entered into a MoU with Swan Energy to create a SPV aimed at servicing global markets in defence, aerospace, railways, and nuclear energy, marking a strategic shift towards high-growth industries.

**Market Position and Competitive Advantage:**

With a robust export strategy generating over 90% of revenues, Balu Forge is well-positioned in the global market, particularly benefiting from supply chain shifts like China+1. The company's integration of Industry 4.0 standards further strengthens its efficiency and competitiveness.

**Investor Implications:**

Investors can look forward to continued revenue growth, supported by new customer additions and strategic partnerships. The management maintains a revenue growth guidance of 55%-60% for FY25, along with strong EBITDA margin expectations, reinforcing a positive outlook for the company's long-term viability.