ramkrishna forgings Ltd. — Earnings Release 2024

Jan 18, 2024

RAJESH

MUNDHRA

Digitally signed by RAJESH MUNDHRA Date: 2024.01.18 14:38:26 +05'30'

Q3 & 9M FY24 Earnings Release January 18, 2024

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RAMKRISHNA FORGINGS LIMITED REPORTS ANOTHER QUARTER OF CONSISTENT GROWTH WITH REVENUE UP 20% & PAT UP 43% (YoY)

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 nine month ended 31[st] December 2023.

STANDALONE Q3FY24 FINANCIAL HIGHLIGHTS

Total Income +20% YoY Rs 90,288 Lakhs	EBITDA +25% YoY Rs 20,750 Lakhs	PAT +43% YoY Rs 8,226 Lakhs

In Rs Lakhs	Q3FY24	Q3FY23	Y-o-Y change	9MFY24	9MFY23	Y-o-Y change
Total Income	90,288	75,231	20%	2,60,344	216,560	20%
EBITDA	20,750	16,628	25%	59,298	48,003	24%
EBITDA Margin	23.0%	22.1%	90 bps	22.8%	22.2%	60 bps
PAT	8,226	5,757	43%	23,877	16,877	41%
PAT Margin	9.1%	7.7%	140 bps	9.2%	7.8%	140 bps

Operational Highlights

• Successfully raised Rs. 1,000 Crores through first ever QIP

• Capacity utilisation has improved quarter on quarter ▪ Overall capacity utilization stood at 96% for Q3FY24, 88% in Q2FY24 and 86% in Q3FY23

Domestic Markets

• In Q3 FY24, sales volume was 28,263 MT, representing a YoY increase of 35.6% over Q3FY23. In 9M FY24, sales volume was 76,277 MT, representing a YoY increase of 22.8% over 9M FY23

• Revenue grew by 32.3% in Q3 FY24 to Rs. 55,456 Lakhs as compared to Rs. 41,911 Lakhs in Q3 FY23. Revenue grew by 20.2% on YoY basis in 9MFY24 to Rs. 150,825 Lakhs

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Exports Markets

• In Q3FY24, sales volume was 13,323 MT, representing a YoY increase of 6.2% over Q3FY23. In 9MFY24, sales volume was 42,211 MT, representing a YoY increase of 24.3% over 9M FY23

• Revenue grew by 4.1% in Q3 FY24 to Rs. 34,047 Lakhs as compared to Rs. 32,691 Lakhs in Q3 FY23. Revenue grew by 19.6% on YoY basis in 9M FY24 to Rs. 107,059 Lakhs

Update on Acquisition

• Received written order from Hon’ble National Company Law Terminal, New Delhi approving the resolution plan for the acquisition of ACIL Limited

Commenting on the results Mr. Naresh Jalan, Managing Director said, Ramkrishna Forgings Limited said:Management Comments “During the quarter, the company registered a strong performance across segments & geographies, with YoY growth of 20% in revenues and 43% in profitability. EBITDA margins stood at 23% driven by operating leverage and a sharp focus on cost control.

We are committed to maintaining a sound financial position. The success of our QIP of 1,000 crores further strengthens our financial foundation, providing additional resources for strategic initiatives. The recent approval by NCLT Delhi for the acquisition of ACIL Limited aligns with our strategies, positioning us for a healthy and robust expansion in the next phase.

The commercial vehicle segment, especially post the festive season, has seen steady growth due to increased fleet utilization amid heightened economic and infrastructure activities. We expect this positive momentum to continue in the coming quarters.

We're committed to global expansion, diversifying products, exploring high-margin niche products, and increasing productivity through automation. Despite potential global disruptions affecting demand, we remain optimistic about sustaining momentum, supported by strong cash flow. We appreciate the continued trust and support of our stakeholders in this exciting growth phase.”

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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, the annualised installed capacity from July 2023 is 210,900 MT. 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 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 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 Executive 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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