ramkrishna forgings Ltd. — Earnings Release 2025

Jul 24, 2024

RAJESH

MUNDHRA

Digitally signed by RAJESH MUNDHRA Date: 2024.07.24 16:00:29 +05'30'

July 24, 2024

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Q1 FY25 Earnings Release

Ramkrishna Forgings Limited Reports Steady Performance in Q1FY25 With Revenue Up 4% & EBITDA up 7%

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 June 30[th] , 2024.

STANDALONE Q1FY25 FINANCIAL HIGHLIGHTS

	Revenue +4% YoY Rs. 868 Crores		EBITDA +7% YoY Rs. 201 Crores*	EBITDA +7% YoY Rs. 201 Crores*	EBITDA +7% YoY Rs. 201 Crores*	FY23 Y-o-Y change 3,001 16% 668 19% 22.3% 236 38% 7.9% PAT -5% YoY Rs. 73 Crores	FY23 Y-o-Y change 3,001 16% 668 19% 22.3% 236 38% 7.9% PAT -5% YoY Rs. 73 Crores
	In Rs Crores	Q1FY25	Q1FY24	Y-o-Y change	FY24	FY23	Y-o-Y change
	Total Income	868	836	4%	3,490	3,001	16%
	EBITDA	201*	188	7%	794	668	19%
	EBITDA Margin	23.1%*	22.4%		22.7%	22.3%
	PAT	73	77	-5%	326	236	38%
	PAT Margin	8.4%	9.2%		9.3%	7.9%

* Adjusted for the impact of one-time expenses of Rs. 17.5 crore

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.

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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 Lakhs as compared to Rs. 48,243 Lakhs 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 Lakhs as compared to Rs. 34,564 Lakhs in Q1FY24.

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

Management Comments s ~~aid:~~ ~~“I am pleased to share~~ our financial performance and strategic milestones for this quarter. Our revenues on a standalone basis stood at Rs. 868 crores, reflecting our strong market presence and operational efficiency. Our adjusted EBITDA was Rs. 201 crores, yielding an impressive EBITDA margin of 23.1%. Our Profit After Tax (PAT) for the quarter was Rs. 73 crores.

We received a significant order inflow, amounting to Rs. 1,679 crores 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.

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About Ramkrishna Forgings Limited

Ramkrishna Forgings was incorporated in 1981 with the objective to manufacture forged products. After commissioning of Hollow Spindle Line, a new 7000 Ton Press Line, a 2000 Ton warm/hot Forming Press, fabrication facility, RA Shaft Press Line and a 5” Upsetter. Installed Capacity as on June 30, 2024, was 229,150T. The Company is headquartered at Kolkata and 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 an 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 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

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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 Mr. Nikunj Jain/ Mr. Siddhesh Dharmadhikari Whole-Time Director & CFO Email: nikunj.jain@linkintime.co.in Email: lalit.khetan@ramkrishnaforgings.com siddhesh.dharmadhikari@linkintime.co.in Tel: +91 97690 60608 / +91 9970186032

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