ramkrishna forgings Ltd. — Earnings Release 2024

Jul 21, 2023

RAJESH Digitally signed by RAJESH MUNDH MUNDHRA Date: RA 2023.07.21 16:30:48 +05'30'

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Q1FY24 Earnings Release

July 21, 2023

RAMKRISHNA FORGINGS LIMITED CONTINUES GROWTH TRAJECTORY WITH REVENUE UP 28% & PAT UP 63% (Y-o-Y)

Ramkrishna Forgings Limited (BSE: 532527, NSE: RKFORGE), one of the leading suppliers of rolled, forged, and machined products, has reported its unaudited financial results for the quarter ended 30[th] June 2023.

Q1FY24 FINANCIAL HIGHLIGHTS

Revenue +28% YoY ₹ 836 Crores	EBITDA +31% YoY ₹ 188 Crores	PAT +63% YoY ₹ 77 Crores

₹ in lakhs	Q1FY24	Q1FY23	Y-o-Y change
Total Income	83,595	65,075	28%
EBITDA	18,754	14,370	31%
EBITDA Margin	22.4%	22.1%
PAT	7,697	4,726	63%
PAT Margin	9.2%	7.3%

Operational Highlights

• During the quarter the Company has successfully renewed the long term contract with additional new product range with Overseas Tier 1 customer based in North America and also received an order worth 4.5 Million Euros from Prominent European Railway Passenger Coach Manufacturer.

• The Company has commenced commercial production of 13,700 TPA of R A Shaft - Press Line and 10,100 TPA of a 5” Upsetter, enhancing the company’s production capacity by 23,800 TPA to 2,10,900 TPA

• Overall capacity utilization was 92% for Q1FY24, 103% in Q4FY23 and 78% in Q1FY23

• The Board has approved an investment to acquire Multitech Auto Private Limited and its wholly owned subsidiary Mal Metalliks Private Limited with a capacity to manufacture 21,600 MT p.a of Machined SG & CI Castings. Multitech Auto also has the capacity for Bar Draw Facility of 6000 MT p.a. The company has also acquired Mal Auto Products Private Limited.

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Domestic Markets

• In Q1 FY24, sales volume was 24,182 MT, representing a YoY increase of 16.7%.

• Revenue grew by 20.8% in Q1 FY24 to Rs. 48,243 Lakhs as compared to Rs 39,925 Lakhs in Q1 FY23.

• Realization per ton improved by 0.7% to Rs. 1.88 lakhs per ton in Q1 FY24 as compared to Rs. 1.86 lakhs per ton in Q1FY23.

Exports Markets

• In Q1FY24, sales volume was 13,963 MT, representing a YoY increase of 42.9% over Q1FY23.

• Revenue grew by 39.7% in Q1 FY24 to Rs. 34,564 Lakhs as compared to Rs 24,739 Lakhs in Q1 FY23.

• Realization per ton improved by 2.3% to Rs. 2.45 Lakhs per ton in Q1 FY24 as compared to Rs. 2.40 lakhs per ton in Q1 FY23.

Commenting on the results Mr. Naresh Jalan, Managing Director, Ramkrishna Forgings Limited

said: “Our company is committed to stringent capital allocation practices, aimed at improving return ratios and generating higher shareholder value. We prioritize sustainable growth and profitability by carefully evaluating investment opportunities and integrating sustainability principles into our operations. Through automation and artificial intelligence, we are in process of enhancing operational efficiency, increase productivity, and address evolving customer demands. Our focus on improving return on capital employed (ROCE) and return on equity (ROE) drives financial performance.

We remain vigilant and closely monitor macroeconomic risks, proactively mitigating them by prioritizing customer relationships and delivering excellent service. We are dedicated to proactively positioning ourselves for future growth and increasing our market share. Our strategic focus revolves around preparing for improved market conditions, ensuring that we are well-prepared to seize opportunities. This includes our efforts to enhance our capacity, aligning our actions with our longterm vision to thrive and succeed in the future.

Additionally, we are actively working towards reducing our debt burden, targeting a Debt to EBITDA level of 1:1 by FY25. This disciplined approach will strengthen our financial position, reduce risks, and provide us with flexibility to pursue growth opportunities.”

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About Ramkrishna Forgings Limited

Ramkrishna Forgings was incorporated in 1981 with the objective to manufacture forged products. The Annualized installed capacity after commissioning of RA Shaft line, 5”upsetter, Hollow Spindle Line, a new 7000 Ton Press Line, a 2000 Ton warm/hot Forming Press, and a fabrication facility is 210,900 MT, headquartered at Kolkata, the company has state-of-theart manufacturing facilities at Jamshedpur along with offices at Detroit in USA, Toluca and Monterrey in Mexico, Istanbul in Turkey having warehousing facilities at Hagerstown, Louisville, Detroit in USA, Toluca, Monterrey in Mexico and Westerloo in Belgium. Over the years, the company increased its forging and die-making capacities and added machining and heat treatment facilities, including isothermal annealing, which enabled it to undertake manufacturing of components for OEMs and Tier 1 companies, The Company is certified in terms of TS 16949, OSHAS 18001 and ISO 14001 and is a manufacturer & supplier of closed die forgings of carbon and alloy steel, micro alloy steel and stainless steel forgings which can be supplied in As Forged + Heat Treated + Machined and Fully assembled condition as per the customer's requirement.

The Company is suppliers to various sectors like Automotive, Railways, Farm Equipment, Bearings, Oil & Gas, Power and Construction, Earth Moving & Mining, both in India & overseas markets. The Company is a critical safety item supplier for undercarriage, Bogie & Shell parts for railway passenger coaches and locomotives. It is a preferred supplier to OEMs like TATA Motors, Ashok Leyland, VE Commercial and Daimler in India and to Volvo, Mack Trucks, Iveco, DAF, Scania, MAN, UD Trucks and Ford otosan in the overseas markets. It supplies globally to Tier 1 axle manufacturers like Dana, Meritor and American Axles.

Safe Harbour

THIS INVESTOR RELEASE (IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF RAMKRISHNA FORGINGS LIMITED (THE “COMPANY”) OR ITS SUBSIDIARIES (TOGETHER WITH THE COMPANY, THE “GROUP’)

The material that follows is a Investor Release of general background information about the Company’s activities as at the date of the Investor Release or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Investor Release has been prepared by and is the sole responsibility of the Company. By accessing this Investor Release, you are agreeing to be bound by the trading restrictions.

It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe to or purchase the Company’s equity shares or other securities. This Investor Release includes statements that are, or may be deemed to be, “forward looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”,“ estimates”,“ anticipates”,“ projects”,“ expects”,“ intends”,“ may”,“ will”,“ or “ or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forwardlooking statements include all matters that are not historical facts. They appear in a number of places throughout this Investor Release and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The factors which may affect the results contemplated by the forward-looking statements could include, among others, future

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changes or developments in the Group’s business, (the Group’s regulatory and competitive environment, and ( political, economic, legal and social conditions in India or the jurisdictions in which our Group operates. Forward looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved.

There are some important factors that could cause material differences to Company’s actual results. These include our ability to successfully implement our strategy, changes in regulatory norms applicable to the Company, changes in technology, investment income, etc. The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Investor Release, unless otherwise specified is only current as of the date of this Investor Release. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this Investor Release, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this Investor Release without obligation to notify any person of such revision or changes.

This document is just an Investor Release and is not intended to be and does not constitute a “ or “offer document” or a “private placement offer letter” or an “offering memorandum” or an “ or a solicitation of any offer to purchase or sell any securities. It is clarified that this Investor Release is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company’s equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities.

This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted or disseminated in any manner to any person other than its intended recipient and should not be reproduced or copied in any manner whatsoever.

For further information, please connect with us:

Company: Ramkrishna Forgings Limited	Investor Relations: Orient Capital
Mr. Lalit Kumar Khetan Whole Time Director & CFO Email: lalit.khetan@ramkrishnaforgings.com	Mr. Nikunj Jain/ Mr. Amar Yardi Email: nikunj.jain@linkintime.co.in / amar.yardi@linkintime.co.in Tel: +91 97690 60608 / +91 70451 21239

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