The company's board of directors has approved a Rs 57.5 crore investment to establish an aluminium forging facility in Jamshedpur.
24 Oct 2024 | 2922 Views | By Autocar Professional Bureau
Ramkrishna Forgings Ltd, a manufacturer of forged and machined products reported 10.1% year-over-year increase in revenue to Rs. 952 crore for the quarter ended September 30. The company's profit after tax including exceptional gains surged by 129.8% to Rs. 183 crore. EBITDA grew by 7% to Rs. 212 crore.
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Ramkrishna Forgings Ltd, a manufacturer of forged and machined products reported 10.1% year-over-year increase in revenue to Rs. 952 crore for the quarter ended September 30. The company's profit after tax including exceptional gains surged by 129.8% to Rs. 183 crore. EBITDA grew by 7% to Rs. 212 crore.
The company largely attributed the significant jump in profit to the sale of its wholly-owned subsidiary, Globe All India Services Limited, to Yatra Online Limited for Rs 128 crores. The hospitality management subsidiary specialized in corporate travel, Meetings, Incentives, Conferences, and Exhibitions (MICE), leisure, and car rental services.
In a strategic move toward electric vehicle manufacturing, the company's board of directors has approved a Rs. 57.5 crore investment to establish an aluminium forging facility in Jamshedpur. The new facility, expected to be operational by Q2 FY26, will have an annual capacity of 3,000 MT and is projected to generate additional revenue of Rs 175 crores at optimal capacity.
The company's EBITDA margin stood at 22.2% for Q2FY25, slightly lower than the 22.9% recorded in the same quarter last year. For the first half of FY25, the company reported total income of Rs. 1,821 crore, representing a 7.1% increase over the previous year.
The company demonstrated strong performance in both domestic and export markets. Domestic sales volume increased by 14.7% to 27,325 tons, while export volume grew by 7.6% to 16,062 tonnes compared to the same quarter last year.
In August 2024, the company completed its acquisition of Resortes Libertad S.A. de C.V. in Mexico, which has been renamed to Ramkrishna Forgings Mexico S.A. de C.V., marking its expansion into the North American market.
Managing Director Naresh Jalan expressed optimism about the company's growth trajectory, noting significant order inflows of Rs. 1,522 crore to be executed over four years. "We continue to undertake steps to solidify our growth prospects," Jalan said. "The addition of capacity and capabilities will ensure that we are well positioned to enhance wallet share across our customer set even as we build out several new offerings and further diversify the industries we serve."
Ramkrishna Forgings was incorporated in 1981 with the objective to manufacture forged products. The Company is headquartered at Kolkata and has manufacturing facilities at Jamshedpur along with offices at Detroit in USA, Toluca and Monterrey in Mexico, Istanbul in Turkey. Over the years, the company increased its forging and die making capacities and added machining and heat treatment facilities, including isothermal annealing.