ramkrishna forgings Ltd. — Earnings Release 2025

Jan 17, 2025

RAJESH

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MUNDHRA
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Digitally signed by RAJESH MUNDHRA Date: 2025.01.17 16:38:42 +05'30'

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Q3 & 9M FY25 Earnings Release

January 17, 2025

Ramkrishna Forgings Limited reports continued growth in Q3FY25

Revenues higher by 5.5% YoY and EBITDA grows 3.8% 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 months ended December 31, 2024.

Standalone Q3FY25 Financial Highlights

Revenue	EBITDA*	PAT
Rs. 953 crore	Rs. 215 crore	Rs. 100 crore
+5.5% YoY	+3.8% YoY	+21.0% YoY

In Rs Crores	Q3FY25	Q3FY24	Y-o-Y **Change **	9MFY25	9MFY24	Y-o-Y Change
Revenue	953	903	5.5 %	2,774	2,603	6.5%
EBITDA	215	208	3.8 %	610	593	2.9%
EBITDA Margin	22.6%	23.0%		22.0%	22.8%
PAT	100	82	21.0 %	355*	239	48.9%
PAT Margin	10.4%	9.1%		12.8%	9.2%

*PAT includes exceptional gains from the sale of Globe All India Services Limited of Rs 88 crores in Q2 & 9M FY25

Operational Highlights

• CRISIL Ratings Limited has reaffirmed the same rating for the Company's Bank Facilities, indicating a positive assessment of its financial position and business performance. This reflects the Company's steady efforts to strengthen its financial and operational framework.

Domestic Markets (Standalone)

• In Q3FY25, sales volume was 30,247 T, as compared to 28,263 T in Q3FY24 representing a YoY increase of 7.02%.

• Revenue grew by 2.9% for Q3FY25 to Rs. 57,084 Lakhs as compared to Rs. 55,456 Lakhs in Q3FY24.

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H1 FY25 Earnings Release

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Exports Markets (Standalone)

• In Q3FY25, sales volume was 14,951 T as compared to 13,323 T in Q3FY24 representing a YoY increase of 12.2%.

• Revenue grew by 9.8% in Q3FY25 to Rs. 37,388 Lakhs as compared to Rs. 34,047 Lakhs in Q3FY24.

Management Comment

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

We are pleased to report a strong performance in the third quarter with Consolidated Revenues higher by 8% on a y-o-y basis. This is despite de-growth growth in domestic CV volumes of 4%. Our growth has been driven by higher share of business across existing customers supported by ramp up of new components and order wins awarded in recent quarters. We have also witnessed sustained momentum in exports this quarter. In terms of order wins, we have received orders amounting to Rs. 697 crore to be executed over a period of four years across from Non Auto segment including Railways.

The outlook remains exciting both for the near and medium term on the back of multiple growth levers of new products, new customers, new verticals being served and new capacities. We are set to commence offerings towards two-wheelers and passenger vehicles, in the coming months and quarters. This will enable further growth coming from the automotive sector, as we have not catered to these segments earlier. We are also excited by the prospects from new components as well as new assemblies. Capacity augmentation in cold forging and aluminum forging will aid growth, while newer, more automated lines and more value engineered lines, will enable higher value addition.

Our plan for streamlining of our subsidiaries is progressing well and we are set to scale up our offerings in casting which will complement our robust track record in forged products. With our recent entry into aluminum forging, we are also well positioned to address the opportunities from EV and hybrid vehicles. Our strategy of diversified growth, underpinned by a balanced approach to risk and return, will help us to drive sustained value creation for all stakeholders.”

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 7,000 Ton Press Line, a 2,000 Ton warm/hot Forming Press, fabrication facility, RA Shaft Press Line and a 5” Upsetter, installed Capacity as on December 31, 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, Sao Paulo in Brazil, Milan in Italy, Degerfors in Sweden and having warehousing facilities at Shelbyville, Hagerstown, Indianapolis and Riverside MI in USA, Toluca, Monterrey and Puebla in Mexico, Westerloo in Belgium, Turin and Verona in Italy. 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

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H1 FY25 Earnings Release

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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 a supplier 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.

For further information, please connect with us:

Mr. Lalit Kumar Khetan Whole-Time Director & CFO Mayank Vaswani / Mit Shah Ramkrishna Forgings Limited CDR, India Phone: +91 033-7122 0900 Phone. +91 98209 40953 / +91 99201 68314 Email: lalit.khetan@ramkrishnaforgings.com Email: mayank@cdr-india.com Email: mit@cdr-india.com

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 forward- looking 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 forwardlooking 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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H1 FY25 Earnings Release

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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.

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H1 FY25 Earnings Release