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Hilton Metal Forging Ltd Gears Up for Domestic Railway Market with New Wagon Axles

25 June 20243 mins read by Angel One
This article explores Hilton Metal Forging Ltd's latest venture in the railway sector along with its financial growth and strategic expansion plans.
Hilton Metal Forging Ltd Gears Up for Domestic Railway Market with New Wagon Axles
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Company launches new product and seeks funding for expansion

Hilton Metal Forging Ltd, a manufacturer of forged products for the railways, oil and gas, and wind energy sectors, has announced the launch of a new product line: wagon axles for railway wagons. This move comes amid rising demand for domestic manufacturing under the “Make in India” and “Atmanirbhar Bharat” initiatives.

The company currently has an installed capacity to manufacture 48,000 railway wheels annually. They are also awaiting approval from RITES to begin production of wagon wheelsets, further solidifying their position in the railway sector.

Financial Performance and Funding Plans

Hilton Metal Forging Ltd has reported consistent growth over the past few years. In FY 2023-24, the company’s net profit rose 14.1% to Rs. 6.68 crore compared to the previous year. Total income also grew by 32.7% to Rs. 139.88 crore. The company credits this success to its expansion into new product lines and its strong operational performance.

To fuel further growth, the board of directors has approved a proposal to raise funds of up to Rs. 100 crore through a fresh issuance of additional equity. This capital increase, subject to regulatory and shareholder approval, will raise the company’s paid-up capital from Rs. 25 crore to Rs. 35 crore.

Diverse Product Portfolio

Founded in 2005, Hilton Metal Forging Ltd has established itself as a reputable manufacturer and distributor in the steel forging industry. Their product portfolio includes flanges, fittings, oilfield and marine components, and now wagon axles. The company has also ventured into the wind energy sector by manufacturing turbine blades.

Hilton Metal Forging has a well-equipped manufacturing facility spread across five acres in Wada, Maharashtra. The facility includes in-house forging, machining, heat treatment, and laboratory testing capabilities.

Hilton Metal Forging Ltd’s launch of wagon axles and its plan to raise capital demonstrate the company’s commitment to capitalizing on opportunities in the domestic railway market. With a strong track record of growth and a diversified product portfolio, the company is well-positioned to benefit from government initiatives promoting self-reliance in the Indian manufacturing sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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