Metalyst Forgings Limited
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BSE Code:
513335
NSE Code:
METALFORGE
Business Profile
Business Profile
Ahmednagar Forgings (AHMEDFO), an Amtek group company, is engaged in the manufacture of high precision closed die steel forgings and auto components for the automotive, defence and railway sectors. The company was incorporated in 1977 and Amtek acquired 62.57% stake in the company in 2002. Arvind Dham is the chairman and A. K. Syal, the managing director of the company.
The company is the largest forging manufacturer in the small and medium component segment. The company specializes in products like connecting rods and caps, crankshafts and camshafts, steering levers, gear shifter forks, sector gears and shafts, front impact beams drive shafts, spindlers, hubs and flanges, transmission components, steering parts, pistons, propeller fork shafts, stub-axles, front axle beams, front and rear axle shafts.
The company has six manufacturing facilities in Ahmednagar, Chakan, Kuruli, Baddi, Bhopal and Gurgaon. The Ahmednagar facility manufactures very intricate medium sized forgings of up to 60 Kg. The Chakan facility has drop hammers, power presses, up-setters and hydraulic presses to manufacture forgings of upto 200 Kg. The Kuruli facility has mechanical forging presses from 700 tons to 6,000 tons capacity. The Gurgaon facility is a closed die press forging facility with eight mechanical forging presses of upto 1,600 tons. The Bhopal plant manufactures high screw presses precision forgings with an installed capacity of 9,000 tons of components per annum. The Baddi facility is capable of manufacturing large and medium-sized forgings.
Customers include Ashok Leyland, Aston Martin, Bajaj Auto, BMW, Briggs & Stratton, CNH Global, Cummins, ..etc. It has a global presence in USA, UK, and Germany. Its registered office is at Gat No 614, Kuruli village, Khed taluka, Pune-410501, Maharashtra.
Financials
The company reported a phenomenon drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 91.75% to Rs 14.60 million from Rs 177 million in the same quarter last year. Net sales declined 30.99% to Rs 1,144 million, while total income for the quarter fell 30.99% to Rs 1,144.40 million, when compared with the prior year period. It reported earnings of Rs 0.42 a share during the quarter, registering 92.12% decline over prior year period.
Recent Developments
15-JAN-08
Ahmednagar Forgings announced that allotment committee of board of directors of the company has allotted securities to the promoter company on preferential basis.The allotment committee has allotted 1,700,000 equity shares of Rs 10 a share at a premium of Rs 230 aggregating to Rs 408 million. It has also allotted 3,800,000 warrants convertible into equivalent number of equity shares of Rs 10 each at a premium of Rs 230 aggregating to Rs 912 million.
03-DEC-07
The Board of Directors of Ahmednagar Forgings has recommended the dividend to its equity shareholders at 20% on the paid up equity share capital of the company.
14-MAR-06
India Fund, Inc. acquires 16,00,000 shares aggregating to 4.815% of the total share capital of the company. The mode of acquisition was through preferential offer and the shareholding of India Fund, Inc. after the said acquisition is 18,17,555 shares aggregating to 5.471% of the total share capital of the company.
Future Plans
The company plans to pursue the inorganic growth strategy in the future. The Amtek group has acquired a substantial stake in GWK group of UK, Smith Jones of USA and Zelter of Germany. The company, however, intends to grow organically as well, in order to combat the high prices of forging steel and the inadequate R&D capabilities to meet the demands of the export market.