Ramkrishna Forgings Limited — Credit Ratings, 16-04-2025: Credit Rating- Revision

Consolidated financials for Ramkrishna Forgings Limited show robust performance. Revenue for 9MFY25 stands at ₹30,869 cr, up from ₹29,316 cr in 9MFY24, reflecting a growth of approximately 5.3%. This increase is primarily attributed to a strong order book, new product launches, and expanded customer engagements, which have helped counter industry-wide slowdowns.

EBITDA grew to ₹6,683 cr, resulting in an EBITDA margin of 21.6%, consistent with the company's focus on higher-margin products and improved operational efficiencies. The increased EBITDA was supported by better cost management despite rising operational expenses. Net profit figures were not provided, but the growth in revenues and margins suggests solid profitability which likely translates into a favorable earnings per share (EPS).

Operational costs have crept up, leading to a minor increase in net adjusted leverage to 2.65x. However, this figure remains healthy, supported by manageable interest coverage of 5.7x, indicative of the company's sufficiency in covering its debt obligations.

Significant strategic moves include recent acquisitions that diversify RKFL’s product offerings and customer base, reducing reliance on the cyclical CV sector. The company aims to continue boosting revenues from non-auto segments, enhancing its resilience.

Investor insight leans towards a "buy" strategy for RKFL, favoring its strong growth trajectory, strategic diversification, and improving credit metrics that could present further upside in the near future.