Ramkrishna Forgings Limited — PPTs, 01-06-2025: Investor Presentation

1. Financial Highlights:

Ramkrishna Forgings posted consolidated revenue of ₹4,034 Cr in FY25, up 9% YoY, with EBITDA jumping 28% to ₹560 Cr and margin expanding to 13.9%. Standalone revenue increased 4% to ₹3,634 Cr, with EBITDA rising 34% to ₹489 Cr (13.5% margin). Q4 saw a 3-10% revenue dip YoY on both bases, with EBITDA margins down to 10-11%. PAT was hit by exceptional items tied to mergers and asset sales but underlying profitability improved. Volume and realization growth (4-5% per ton) remained steady. Net debt rose to ₹1,821 Cr due to capex and working capital needs.

2. Strategic Initiatives & Growth Drivers:

Capacity expansion is aggressive, targeting 333,400 MT forging and 62,400 MT casting annually, with new presses added. The rail wheel JV with Titagarh Rail is a key growth area, with ₹345 Cr equity invested and total project cost of ₹2,000 Cr, to start operations by early 2026. The company is diversifying into EV parts, heavy commercial vehicle forgings, and non-automotive sectors. International footprint expands with a Mexico machining facility servicing North America.

3. Business Developments:

Acquisition of a Mexican machining firm has enabled North American market entry with initial orders received. Q4 orders totaled ₹710 Cr, split 74% automotive and 23% non-automotive, reflecting diversification. A contract for fully assembled bogie frames from Indian Railways boosts its fabrication vertical significantly.

4. Market Position & Competitive Advantage:

Ramkrishna Forgings is building one of Asia’s largest forging plants, gaining scale advantage. The rail wheel JV highlights leadership in a high-barrier segment. Investments in tech and capacity diversification position the company across automotive, EV, and rail segments. Domestic revenues rose 6% YoY. Focus on sustainable practices and green energy bolsters differentiation.

5. Investor Implications:

Strong growth potential driven by capacity ramp-up, rail infrastructure entry, and global market access. Margin improvement and segment diversification reduce automotive cycle risks. Capex-driven debt increase poses execution risk but steady order inflows and project progress are positive. ESG focus aligns with investor trends, supporting long-term value.