ramkrishna forgings Ltd. — Investor Presentation 2021

Oct 11, 2021

RAMERISHNA FORGINGS LIMITED

Date: 11% October 2021

The Listing Department The Listing Department Mumbai — 400 001 Mumbai- 400051

Bombay Stock Exchange National Stock Exchange of India Limited P| Towers "Exchange Plaza" C-1, Block G Dalal Street Bandra- Kurla Complex, Bandra (E)

BSE SCRIP CODE: 532527 NSE SYMBOL: RKFORGE

Dear Sir / Madam,

Sub: Investor Presentation for the quarter and half year ended 30" September 2021

Please find enclosed the Investor Presentation on the financial results of the Company for the quarter and half year ended 30 September 2021.

Request to kindly take the same into record.

Thanking You,

Yours truly, For Ramkrishna Forgin, Aa Rajesh Mundhra Company Secretary

REGISTERED & CORPORATE OFFICE

23 CIRCUS AVENUE, KOLKATA 700017, WEST BENGAL, INDIA PHONE : (+91 33)4082 0900 / 7122 0900, FAX: (+91 33)4082 0998 / 7122 0998, EMAIL: info@ramkrishnaforgings.com, WEB: www.ramkrishnaforgings.com CIN NO. :L74210WB1981PLC034281

Ramkrishna Forgings Limited Result Update Presentation – Q2 & H1 FY22

Safe Harbour

THIS PRESENTATION (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 Presentation of general background information about the Company's activities as at the date of the Presentation 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 Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, 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 Presentation 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 Presentation 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 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 Presentation, unless otherwise specified is only current as of the date of this Presentation. 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 Presentation, 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 Presentation without obligation to notify any person of such revision or changes.

This document is just a Presentation 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 Presentation 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.

Standalone Quarterly Highlights – Q2 FY22

Financial Results at Glance

Chairman Comments

Commenting on the results and performance, Mr. Mahabir Prasad Jalan, Chairman said:

The Company has achieved a turnover of Rs 57,893.59 Lakhs in Q2FY22 in comparison to Rs 25,247.13 Lakhs in Q2FY21 registering an increase of 129.31% YoY and Rs 99,607.12 Lakhs in H1FY22 in comparison to Rs 36,832.00 Lakhs in H1FY21 registering an increase of 170.44% YoY. The Company has achieved an Export turnover of Rs 28,673.78 Lakhs in Q2FY22 comparison to Rs 11,390.78 Lakhs in Q2FY21, registering a growth of 151.73% and an Export turnover of Rs 50,698.79 Lakhs in H1FY22 comparison to Rs 18,006.05 Lakhs in H1FY21, registering a growth of 181.57%. The EBDITA (excl. other income) is also increased to Rs 13,917.94 Lakhs in Q2FY22 in comparison to Rs 4,557.84 Lakhs in Q2FY21 and Rs. 23,449.85 Lakhs in H1FY22 as compared to Rs. 4,408.46 Lakhs in H1FY21. The PAT has also increased to Rs 5,011.20 Lakhs in Q2FY22 from Rs 207.30 Lakhs in Q2FY21 and to Rs. 7,472.49 Lakhs in H1FY22 from Rs. -2,439.89 Lakhs in H1FY21.

With all the capacity expansions in place taking our overall capacity to 1,87,100 tons per annum, we expect to increase our presence in Indian as well as exports markets and deliver new products which might help us to improve our operating leverage and boost our margins

With the help of our research and development and various initiatives we can offer improved and premium products to our customer. Our strategy of diversifying our presence in both auto and non-auto segment along with strengthening presence in exports market has been bearing fruits with recent order wins.

Managing Director Comments

Commenting on the results and performance, Mr. Naresh Jalan, Managing Director said:

Our company has reported strong results across various business parameters. During the quarter we managed to win contracts across all business segments and entered new geographies thus gaining further grounds on our sector as well as geographic diversification strategy.

We have marked our presence in EV segment by winning our first EV contract which a testimony of our technological prowess.

Our contract wins in oil & gas segment strengthens our penetration into this sector and is in line with the strategy to diversify its portfolio across sectors and geographies.

Looking ahead into second half of FY22, we expect the overall growth to continue supported by recovery in the domestic automotive markets and sustained improvement in exports.

Potential impact on OEM production schedule due to semiconductors supply crunch, increase of input costs and freight cost are factors to keep track of in the coming months.

Looking at the visibility of the business, we hope the recent recovery in Commercial Vehicle segment continues for the balance period of the year which will enable us to post a strong growth foundation for coming years."

Key Highlights – H1 FY22

Standalone Financial Highlights - Quarter

Note: 1. Revenue from operations excludes other income

2. EBITDA excludes other income

3. PAT Margin excludes other income

Standalone Financial Highlights – Half Yearly

Note: 1. Revenue from operations excludes other income

2. EBITDA excludes other income

3. PAT Margin excludes other income

Standalone P&L - Quarter

Profit and Loss (in Rs. Lakhs)	Q2FY22	Q2FY21	YoY	Q1FY22	QoQ	H1FY22	H1FY21	YoY
Revenuefrom Operations	57,893.59	25,247.13	129.31%	41,713.53	38.79%	99,607.12	36,832.00	170.44%
Cost of Goods Solds	26,116.60	12,291.78		16,209.00		42,325.60	17,805.16
Gross Profit	31,776.99	12,955.35	145.28%	25,504.53	24.59%	57,281.52	19,026.84	201.06%
Gross Profit Margin	54.89%	51.31%		61.14%		57.51%	51.66%
Employee Cost	2,759.24	2,174.32		3,150.94		5,910.18	4,292.05
Power and Fuel	3,779.99	2,032.56		3,365.02		7,145.01	3,040.53
Other Expenses	11,319.82	4,190.63		9,456.66		20,776.48	7,285.80
EBITDA	13,917.94	4,557.84	205.36%	9,531.91	46.01%	23,449.85	4,408.46	431.93%
EBITDA Margin	24.04%	18.05%		22.85%		23.54%	11.97%
Other Income	37.75	82.17		79.72		117.47	143.69
Depreciation	3,951.87	2,468.12		3,883.97		7,835.84	4,700.91
Finance Cost	2,061.29	1,904.11		2,025.30		4,086.59	3,718.57
Exceptional Item Gain / (Loss)	-	-		-	-	-	-
EBT	7,942.53	267.78	2866.07%	3,702.36	114.53%	11,644.89	-3,867.33
EBT Margin	13.72%	1.06%		8.88%		11.69%	-10.50%
Tax	2,931.33	60.48		1,241.07		4,172.40	-1,427.44
Profit After Tax	5,011.20	207.30	2317.37%	2,461.29	103.60%	7,472.49	-2,439.89
Profit After Tax Margin	8.66%	0.82%		5.90%		7.50%	-6.62%
Other Comprehensive Income	8.38	-6.74		8.37		16.74	-13.48
Total Comprehensive Income	5,019.59	200.56	2402.78%	2,469.66	103.25%	7,489.23	-2,453.37

Standalone Balance Sheet

Assets (in Rs. Lakhs)	Sep-21	Mar-21*
Non -Current Assets		1,64,198.52 1,55,584.60
Property Plant & Equipments		1,45,662.45 1,22,182.99
CWIP	11,195.36	27,201.80
Intangible assets	74.10	79.26
Right of use asset	993.90	1,008.90
Financial Assets
(i) Trade receivables	-	-
(ii) Investments	1,937.79	1,937.79
(iii) Loans	185.26	169.61
(iv) Other Financial Assets*	1,282.10	1,269.60
Non -Current Assets (Net)	249.57	249.58
Other Non Current Assets	2,617.99	1,485.07
Current Assets		1,42,265.64 1,12,338.59
Inventories	60,479.81	42,399.65
Financial Assets
(i)Trade receivables	70,010.33	55,992.96
(ii)Cash and cash equivalents	2,682.62	6,658.60
(iii)Bank balances other than cash and cash equivalents	132.31	21.73
(iv) Loans	25.90	12.27
(v) Other Financial Assets *	2,855.93	2,898.13
Current Tax Assets (Net)	14.36	14.36
Other Current Assets	6,064.38	4,340.89
Total Assets		3,06,464.16 2,67,923.19

*@ - Borrowings includes current maturities of long-term debt

* Other Financial assets include security deposit

** Other financial liabilities excludes current maturities of long-term debt

Equity & Liabilities (in Rs. Lakhs)	Sep-21	Mar-21
Total Equity	96,377.88	88,996.77
Share Capital	3,197.79	3,193.27
Reserves & Surplus	93,180.09	85,803.50
Non-Current Liabilities	78,508.69	75,025.51
(i) Borrowings	67,785.23	66,360.47
(ii) Lease Liabilities	356.50	378.48
(iii) Other Finanical Liabilities	0.00	0.00
Deferred Tax Liabilities	8,733.44	6,587.74
Other Non Current Liabilities	1,633.52	1,698.82
Current Liabilities	1,31,577.57	1,03,900.91
Financial Liabilities
(i) Borrowings*@	67,393.27	54,159.91
(ii) Lease Liabilities	32.98	21.99
(iii) Trade Payables	53,889.17	42,915.75
(iv) Other Financial Liabilities **	7,491.22	4,886.07
Other Current Liabilities	1,391.23	1,228.07
Provisions	598.77	519.50
Current tax liabilities (net)	780.93	169.62

Standalone Cashflow Statement

Particulars (Rs. Lakhs)	Sep-21	Mar-21*
Net Profit Before Tax	11,644.89	4,147.98
Adjustments for: Non -Cash Items / Other Investment or Financial Items	10,709.44	18,453.42
Operating profit before working capital changes	22,354.33	22,601.40
Changes in working capital	-21,099.26	-9,394.23
Cash generated from Operations	1,255.07	13,207.17
Direct taxes paid (net of refund)	-1,424.37	-557.48
Net Cash from Operating Activities	-169.30	12,649.69
Net Cash from Investing Activities	-14,509.28	-22,622.06
Net Cash from Financing Activities	10,702.59	16,404.51
Net Decrease in Cash and Cash equivalents	-3,975.99	6,432.14
Add: Cash & Cash equivalents at the beginning of the period	6,658.60	226.46
Cash & Cash equivalents at the end of the period	2,682.61	6,658.60

Key Operational Matrix

Total Sales Volume Break-up (In tons)
Particulars	Q2FY22	Q2FY21	YoY	Q1FY22	QoQ	H1FY22	H1FY21	YoY
Domestic Markets	16,349	9,620	69.95%	11,684	39.92%	28,033	13,020	115.31%
Export Markets	11,930	5,929	101.22%	10,221	16.72%	22,152	9,163	141.75%
Total	28,279	15,549	81.87%	21,905	29.10%	50,184	22,183	126.23%

Sales Realisations (Rs. / ton)
Particulars	Q2FY22	Q2FY21	YoY	Q1FY22	QoQ	H1FY22	H1FY21	YoY
Domestic Markets	1,76,280	1,38,778	27.02%	1,62,700	8.35%	1,71,425	1,38,561	23.72%
Export Markets*	2,27,434	1,92,120	18.38%	2,13,507	6.52%	2,19,989	1,96,508	11.95%

* Ocean Freight realization not included.

Total Revenue Breakup (Rs. Lakhs.)
Particulars	Q2FY22	Q2FY21	YoY	Q1FY22	QoQ	H1FY22	H1FY21	YoY
Domestic Markets	28,819.82	13,350.46 115.87%		19,012.75	51.58%		48,055.98 18,040.58 166.38%
Export Markets		28,673.78 11,390.78 151.73%		22,248.41	28.88%		50,698.79 18,006.05 181.57%
Other Income	37.75	82.17	-54.06%	79.72	-52.65%	117.47	143.69	-18.25%
Export Incentive	400.00	505.89	-20.93%	452.36	-11.58%	852.35	785.36	8.53%
Total	57,931.34	25,329.30	128.71%	41,793.25	38.61%	99,724.59	36,975.69	169.70%

Revenue Mix – Q2FY22

Export Revenue Break-up - Quarter

Manufacturing Capacity and Utilization - Quarter

	Installed	Q2 FY22					Q1 FY22Q4 FY21		Q3 FY21		Q2 FY21		Q1 FY21
Particulars	Capacity	Production(MT)	Utilization(%)	Production(MT)	Utilization(%)	Production(MT)	Utilization(%)	Production(MT)	Utilization(%)	Production(MT)	Utilization(%)	Production(MT)	Utilization(%)
Ring Rolling	24,000	6,990	116.50%	7,528	125.47%	7,345	122.42%	7,130	118.83%	4,793	79.88%	1,599	26.65%
Forgings	46,000	11,606	100.9%	12,037	104.67%	13,276	115.44%	11,112	96.63%	7,470	64.96%	3,182	27.67%
Press*	117,100	18,267	62.40%	15,871	59.22%	16,606	73.64%	12,845	64.23%	6,158	30.79%	3,129	15.65%
Total Capacity	1,87,100	36,863	78.81%	35,436	79.99%	37,227	92.95%	31,087	82.90%	18,421	49.12%	7,910	21.09%

*Note: Installed capacity after commissioning of 2000 Ton warm Forging Press on September 30, 2021

Historical Financial Highlights - Annual

Standalone Historical Financial Highlights - Annual

2. EBITDA excludes other income

* - FY20 Performance impacted due to economic slowdown leading to sluggish demand for CVs

** - FY21 Performance impacted due to COVID-19 induced lockdown

Key Ratios

* - FY20 Performance impacted due to economic slowdown leading to sluggish demand for CVs ** - FY21 Performance impacted due to COVID-19 induced lockdown

18

Standalone P&L - Annual

Profit and Loss (in Rs. Lakhs.)	FY21**	FY20*	FY19
Revenuefrom Operations	1,28,837.52	1,11,182.02	1,80,668.73
Cost of Goods Sold	64,546.66	50,672.92	92,650.02
Gross Profit	64,290.86	60,509.10	88,018.71
Gross Profit Margin	49.90%	54.42%	48.72%
Employee Cost	9,037.03	9,424.07	9,682.11
Power and Fuel	9,354.37	9,718.56	14,247.64
Other Expenses	22,906.95	20,994.91	26,138.97
EBITDA	22,992.51	20,371.56	37,949.99
EBITDA Margin	17.85%	18.32%	21.01%
Other Income	461.46	601.60	298.85
Depreciation	11,628.46	12,016.49	12,083.33
Finance Cost	7,677.53	7,515.17	7,921.70
Profit before Tax	4,147.98	1,441.50	18,243.81
Profit before Tax Margin	3.22%	1.30%	10.10%
Tax	1,352.45	480.06	6,312.73
Profit After Tax	2,795.53	961.44	11,931.08
Profit After Tax Margin	2.17%	0.86%	6.60%
Other Comprehensive Income	33.48	-26.95	-84.58
Total Comprehensive Income	2,829.01	934.49	11,846.50

19 * - FY20 Performance impacted due to economic slowdown leading to sluggish demand for CVs

** - FY21 Performance impacted due to COVID-19 induced lockdown

Standalone Balance Sheet

Assets (in Rs. Lakhs)	Mar-21**	Mar-20*	Mar-19	Equity & Liabilities (in Rs. Lakhs)	Mar-21**	Mar-20*	Mar-19
Non -Current Assets	1,55,584.60	1,44,502.04	1,30,843.47	Total Equity	88,996.77	87,642.72	87,290.18
Property Plant & Equipment's	1,22,182.99	1,15,731.81	1,10,486.26
CWIP	27,201.80	21,643.72	12,958.51	Share Capital	3,193.27	3,260.77	3,260.68
Intangible assets	79.26	81.52	144.93	Reserves & Surplus	85,803.50	84,381.95	84,029.50
Right of use asset	1,008.90	840.78	0.00	Non-Current Liabilities	75,025.51	55,877.99	53,502.48
Financial Assets				(i) Borrowings	66,360.47	47,903.26	45,815.70
(i) Trade receivables	0.00	371.36	0.00
(ii) Investments	1,937.79	1,930.32	1,930.32	(ii) Lease Liabilities	378.48	352.61	0.00
(iii) Loans	1,387.40	1,350.11	1,250.31	(iii) Other FinanicalLiabilities	0.00	0.00	0.00
(iv) Other Financial Assets	51.81	71.32	51.81	Deferred Tax Liabilities	6,587.74	5,944.50	5,717.95
Non -Current Assets (Net)	249.58	249.58	0.00	Other Non Current Liabilities	1,698.82	1,677.62	1,968.83
Other Non Current Assets	1,485.07	2,231.52	4,021.33	Current Liabilities	1,03,900.91	74,242.18	74,115.94
Current Assets	1,12,338.59	73,260.85	84,065.13
Inventories	42,399.65	35,719.24	33,126.03	Financial Liabilities
Financial Assets				(i) Borrowings	44,902.03	36,424.99	33,206.86
(i)Trade receivables	55,992.96	30,259.74	46,603.87	(ii) Lease Liabilities	21.99	39.75	0.00
(ii)Cash and cash equivalents	6,658.60	226.46	193.69	(iii) Trade Payables	42,915.75	20,692.91	26,471.74
(iii)Bank balances other than cash and cash equivalents	21.73	6.66	53.84	(iv) Other Financial Liabilities	14,143.95	15,791.38	12,090.48
(iv) Loans	163.39	731.73	60.82	Other Current Liabilities	1,228.07	758.89	1,598.48
(v) Other Financial Assets	2,747.01	3,230.55	2,689.21	Provisions	519.50	534.26	557.83
Current Tax Assets (Net)	14.36	14.36	23.02
Other Current Assets	4,340.89	3,072.11	1,314.65	Current tax liabilities (net)	169.62	-	190.55
Total Assets	2,67,923.19	2,17,762.89	2,14,908.60	Total Equity & Liabilities	2,67,923.19	2,17,762.89	2,14,908.60

20 * - FY20 Performance impacted due to economic slowdown leading to sluggish demand for CVs

** - FY21 Performance impacted due to COVID-19 induced lockdown

Standalone Cashflow Statement - Annual

Particulars (Rs. Lakhs)	FY21**	FY20*	FY19
Net Profit Before Tax	4,147.98	1,441.50	18,243.81
Adjustments for: Non -Cash Items / Other Investment or Financial Items	18,453.42	17,667.45	18,021.88
Operating profit before working capital changes	22,601.40	19,108.95	36,265.69
Changes in working capital	-9,394.23	6,677.52	-4,840.58
Cash generated from Operations	13,207.17	25,786.47	31,425.11
Direct taxes paid (net of refund)	-557.48	-670.16	-4,148.23
Net Cash from Operating Activities	12,649.69	25,116.31	27,276.88
Net Cash from Investing Activities	-22,622.06	-22,493.08	-25,384.93
Net Cash from Financing Activities	16,404.51	-2,590.47	-1,734.91
Net Decrease in Cash and Cash equivalents	6,432.14	32.77	157.04
Add: Cash & Cash equivalents at the beginning of the period	226.46	193.69	36.65
Cash & Cash equivalents at the end of the period	6,658.60	226.46	193.69

21 * - FY20 Performance impacted due to economic slowdown leading to sluggish demand for CVs ** - FY21 Performance impacted due to COVID-19 induced lockdown

Conference Call Details

Conference Call Details

Q2 FY22 Earnings Call

Scheduled on:	Monday, October 11, 2021at 16:45 Hours India Time
Pre-Registration Link:

Contact Information

Thank You