Conference Call with Ramkrishna Forgings Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Industrial Products company Ramkrishna Forgings announced Q2FY25 results Financial Highlights: Revenue: Rs 952 crore, compared to Rs 865 crore during Q2FY24, change 10.1% YoY. EBITDA: Rs 212 crore, compared to Rs 198 crore during Q2FY24, change 7.0% YoY. PAT: Rs 183 crore, compared to Rs 80 crore during Q2FY24, change 129.8% YoY. Naresh Jalan, Managing Director, Ramkrishna Forgings said: “We continue to undertake steps to solidify our growth prospects. In addition to sustained momentum in order wins, we are engaging more deeply with our existing and prospective customers to offer comprehensive solutions. The addition of capacity and capabilities will ensure that we are well positioned to enhance wallet share across our customer set even as we build out several new offerings and further diversify the industries we serve. This multi-dimensional approach will not only allow us to scale efficiently but will also position us to lead in emerging sectoRs In this quarter, your company has received a significant order inflow, amounting to Rs 1,522 crore to be executed over a period of four years across various geographies and segment. During the quarter, we have divested our stake in Hospitality Company - Globe All India Services Limited to Yatra Online Limited for an all cash consideration of Rs 128 crore. Further, our Board has approved investment of Rs 57.5 crore towards setting up of Aluminium forging capacity at Jamshedpur, which will cater primarily to EV segment, significantly enriching our presence in the EV market. This will ensure more optimum capital allocation with capital from non-core businesses being unlocked and divested into core, growth oriented areas. Further, our capacity expansion plans and initiatives to streamline our corporate structure continue to progress well. At the heart of our strategy is a relentless focus on operational excellence. We are committed to executing with precision, ensuring that every aspect of our business delivers value, from manufacturing to service delivery. By deepening our engagement with high-quality customers and partners, we will continue to provide the exceptional solutions and support that our stakeholders expect. This disciplined approach to business execution will drive not only top-line growth but also enhance the overall customer experience, further solidifying our market position. Throughout this journey, we remain committed in creating sustained value for our shareholdeRs As we diversify our growth initiatives, we will maintain a balanced approach to risk and return, ensuring that every decision we make contributes to long-term value creation. Our focus will be on generating consistent returns, optimizing capital allocation, and enhancing operational efficiencies, all while staying true to our mission of delivering superior performance and shareholder value." Result PDF
Industrial Products company Ramkrishna Forgings announced Q1FY25 results: Financial Highlights: Revenue: Rs 868 crore, up by 4% YoY EBITDA: Rs 201 crore, up by 7% YoY PAT: Rs 73 crore, down by 5% YoY Operational Highlights: The Board of Directors have approved the acquisition of Resortes Libertad, S.A. de C.V. in Mexico. The new entity in Mexico is proposed to be named as Ramkrishna Forgings Mexico S.A. DE C.V. and the registered office will be in Monterrey Mexico. The Company has taken a factory space on lease at Monterrey, Mexico and will start its machining & warehousing operations from Q3FY25 onwards. The Board of Directors have approved the merger of ACIL Ltd with the company. Both the entities bring unique strengths, and the merger will enhance market presence, operational efficiency, innovation and excellence Overall capacity utilization stood at 86% for Q1FY25 vs 91% in Q4FY24 and 92% in Q1FY24. The drop in utilization is due to addition of capacity in during the quarter. Domestic Markets (Standalone): In Q1FY25, sales volume was 23,217 T, as compared to 24,182 T in Q1FY24. Revenue for Q1FY25 stands at Rs 46,745 Lakh as compared to Rs 48,243 Lakh in Q1FY24. Exports Markets (Standalone) In Q1FY25, sales volume was 15,322 T as compared to 13,963 T in Q1FY24 representing a YoY increase of 9.7%. Revenue grew by 13.6% in Q1FY25 to Rs 39,267 Lakh as compared to Rs 34,564 Lakh in Q1FY24. Commenting on the results Naresh Jalan, Managing Director, Ramkrishna Forgings said: “I am pleased to share our financial performance and strategic milestones for this quarter. Our revenues on a standalone basis stood at Rs 868 crore, reflecting our strong market presence and operational efficiency. Our adjusted EBITDA was Rs 201 crore, yielding an impressive EBITDA margin of 23.1%. Our Profit After Tax (PAT) for the quarter was Rs 73 crore. We received a significant order inflow, amounting to Rs 1,679 crore to be executed over a period of four years. The order book also includes an undercarriage business order from a metro car in the railway segment, contributing to our diversification into the non-auto space. The Board of directors approved the merger of ACIL Limited with the company. The merger will provide the significant synergies & cost savings and opportunities to expand market drive further growth. In addition, the Board of Directors have also approved the acquisition of Resortes Libertad, S.A. DE C.V. in Mexico. This acquisition marks a significant step in our strategic expansion, and the new entity is proposed to be named as Ramkrishna Forgings Mexico S.A. DE C.V. We plan to commence our machining and warehousing operations from Q3 FY25 onwards. These developments underscore our commitment to expanding our global footprint, diversifying our business portfolio, and delivering sustainable growth. We are confident that these strategic initiatives will position us for continued success and create long-term value for our stakeholders. Result PDF