ramkrishna forgings Ltd. — Earnings Release 2023

Apr 29, 2023

RAJESH

MUNDH

RA

Digitally signed by RAJESH MUNDHRA Date: 2023.04.29 17:21:55 +05'30'

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Q4 & FY23 Earnings Release

April 28, 2023

RAMKRISHNA FORGINGS LIMITED REPORTS ROBUST FULL YEAR GROWTH WITH REVENUE UP 31% & PAT UP 14%

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 and financial year ended 31[st] March 2023.

FY23 FINANCIAL HIGHLIGHTS

Revenue +31% YoY 3,001 Crores	EBITDA +27% YoY 668.2 Crores	PAT +14% YoY 235.6 Crores

In Rs Lakhs	Q4FY23	Q4FY22	Y-o-Y change	FY23	FY22	Y-o-Y change
Total Income	83,540	68,324	22%	3,00,100	2,28,537	31%
EBITDA	18,816	15,102	25%	66,819	52,697	27%
EBITDA Margin	22.5%	22.1%		22.3%	23.1%
PAT	6,682	8,665	-23%	23,559	20,650	14%
PAT Margin	8.0%	12.7%		7.9%	9.0%

Operational Highlights

• During the year, there was a renewal of a long-term contract with increase in new product range and offerings with an overseas Tier 1 customer based in North America

• In Consortium with Titagarh Wagons the company received LOA for Manufacturing and Supplying of Forged Wheels for the Indian Railways and the size of the Order will be Rs. 12,226.50 Crores

• Ramkrishna Forgings Takes a Step Forward Towards Sustainability by Planning to set up 7.82 MW Solar Power Plant

• Long-term rating upgraded to [ICRA]A+ and short-term rating reaffirmed; outlook revised to Stable from Positive

• Capacity utilisation has improved quarter after quarter

• Overall capacity utilization was 103% for Q4FY23, 86% in Q3FY23 and 73% in Q3FY22

• Declared 4[th] Interim dividend of Rs. 0.50 per share

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Domestic Markets

• In Q4 FY23, sales volume was 24,611 MT, representing a YoY increase of 14.7%. In FY23, sales volume was 86,710 MT, representing a YoY increase of 26.3% over FY22

• Revenue grew by 17.4% in Q4 FY23 to Rs. 49,037 Lakhs as compared to Rs 41,758 Lakhs in Q4 FY22. Revenue grew by 40.6% on YoY basis in FY23 to Rs. 174,498 Lakhs

• Realization per ton improved by 5.0% to Rs. 1.89 lakhs per ton in Q4 FY23 as compared to Rs. 1.80 lakhs per ton in Q4FY22 and improved by 10.3% to Rs. 1.93 lakhs per MT in FY23 as against Rs. 1.75 lakhs per ton in FY22

Exports Markets

• In Q4FY23, sales volume was 13,977 MT, representing a YoY increase of 32.1% over Q3FY22. In FY23, sales volume was 47,944 MT, representing a YoY increase of over 11.3% in FY22

• Revenue grew by 29.2% in Q4 FY23 to Rs. 33,811 Lakhs as compared to Rs 26,169 Lakhs in Q4 FY22. Revenue grew by 19.9% on YoY basis in FY23 to Rs. 123,351 Lakhs

• Realization per ton improved by 4.3% to Rs. 2.42 Lakhs per ton in Q4 FY23 as compared to Rs. 2.32 lakhs per ton in Q4 FY22 and improved by 8.9% to Rs. 2.45 Lakhs per ton in FY23 as against Rs. 2.25 lakhs per ton in FY22

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

said: “Our business model is both diverse and robust, which has resulted in a sustained growth momentum. Our strategy to expand our product offering in conjunction with the high customer demand has led to a 31% year-on-year increase in revenues for this fiscal year. Our global geographical outreach has enabled us to secure new orders and strengthen our order book.

As of March 31, 2023, we have successfully reduced our gross debt by 21%, and it currently stands at Rs. 1,24,100 lakhs. We remain committed to reduce debt. The commercial vehicle segment has experienced steady growth following the festive season due to high fleet utilization resulting from increased economic and infrastructure activity.

I am delighted to announce that we have renewed our long-term contract with an Overseas Tier 1 customer based in North America, which includes an additional new product range. Furthermore, the consortium of Ramkrishna Forgings Limited and Titagarh Wagons Limited has received the LOA from the Ministry of Railways, Government of India, for "Manufacturing and Supply of Forged Wheels under long term agreement under Aatma Nirbhar Bharat."

We anticipate that the commercial vehicle market will continue to grow, and we are committed to maintaining our strong market share by focusing on a customer-centric approach that offers advanced and value-added products worldwide.”

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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 Hollow Spindle Line, a new 7000 Ton Press Line, a 2000 Ton warm/hot Forming Press and a fabrication facility is 187,100 MT. headquartered at Kolkata, the company has state-of-the-art 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 changes or developments in the Group’s business, (the Group’s regulatory and competitive

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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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