The Scot guided Forest to four wins and a draw which saw the club jump into the top six and has now claimed a record-breaking seven Championship manager of the month awards.
He told the club's official website: "The manager of the month award is always a great one to receive as, invariably, it reflects an excellent month's work on the pitch.
"March was a great period for us - I use the collective term because it was a team effort. I get the praise in situations like this but I can't speak highly enough of my staff - without them we wouldn't be in the position we find ourselves now.
"We devise the tactics, we pick the teams, we make the substitutions but it's down to the players to win the points. Their tremendous effort, commitment and ambition should not be lost in all of this."
Davies also paid tribute to the club's fans with more than 28,000 in attendance for the 2-2 draw with Brighton on March 30.
He added: "I've always said that one of the reasons I came back was because of the tremendous relationship I had with the Forest fans.
"Their support has been magnificent and I'm delighted we've been able to give them such an enjoyable month. Our focus now rests solely on prolonging our excellent run."