Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q1 FY24 Earnings Presentation
43 slides from Ramkrishna Forgings's earnings presentation, Jul 21, 2023
Slide 1: Announcement under Regulation 30 - Investors Presentation
RAMKRISHNA FORGINGS LIMITED Date: 21st July, 2023 To To The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited PJ Towers “Exchange Plaza” C-1, Block G Dalal Street Bandra- Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai- 400051 BSE SCRIP CODE: 532527 NSE
Slide 2: Investor Presentation Q1 FY24
Investor Presentation Q1 FY24
Slide 3: About Ramkrishna Forgings
About Ramkrishna Forgings
Slide 4: One of the largest forging players in India
One of the largest forging players in India Vision, Mission & Core Values Vision To Create Value for all business partners, shareholders and customers in all areas of business Ramkrishna Forgings Limited is associated while demonstrating world-class standards of Sustainability, Social Responsibility
Slide 5: Key Highlights
Key Highlights Manufacturer and 2nd largest forging Global presence with supplier of a variety player in India with footprints in North of auto and non-auto over 40 years of America and Europe components experience Promoter possessing Continued focus on Longstanding multi-decade forgings diversifica
Slide 6: … with over four decades of unique capabilities
… with over four decades of unique capabilities Company Investment Received equity and debt Commissioned 2 of its Commissioned a Hollow Incorporation from UTI Venture Funds funding from IFC. press lines Spindle Line Management Company Equity funding from of 6,300T & 12,500T (Ascent Capital Limited)
Slide 7: … at strategic locations giving us competitive edge
… at strategic locations giving us competitive edge Proximity to automobile manufacturing hubs & key suppliers o RKFL’s facilities in eastern India are located in close proximity to automobile manufacturing hubs and key suppliers of of raw material • Less chance of supply interruptions • Lower logis
Slide 8: … demonstrating superior performance
… demonstrating superior performance* 1,87,100T 23 Installed Capacity 87% 1,34,654 Countries Served Increased to 2,10,900T Capacity Utilisation Sales Volume with effect from 18th July2023 21% YoY ₹ 3,001 cr 100% 3% ₹ 668 cr Revenue Dividend# Total Turnover EBITDA 31% YoY from EV 27% YoY 22.3% 19.3%
Slide 9: … clear focus on de-risking business
… clear focus on de-risking business Company has a clear focus towards de- 2019 2023 risking the business by reducing dependency on single product or single client De-risking Business Strategies New verticals 2 4 New product categories 35 51 New Geographies 15 23 New customers 153 218 Increased mach
Slide 10: … offering diversified products
… offering diversified products Front Axle & Steering I Beam Knuckle Steering Arm Tie Rod Arm Sector Shaft Front Hub Engine Crankshaft Camshaft Connecting Rod Piston Pitman Arm Suspension & Chassis BC Lever Assembly Mounting Brackets Yokes UJ Cross Transmission Transmission Gears Transmission Shafts
Slide 11: … offering diversified products
… offering diversified products 1,2,3 & 4 Cyl Forged Crankshafts Front Axle & Steering Crown Wheel & Pinion Rear Axle Shafts Transmission Shafts & Gears Bucket Backhoe Bucket Shovel Track Link Front Axle & Steering Track Roller Bucket Tooth Pivot Pin Prop Shaft Bearing Centre 10 Ramkrishna Forgings
Slide 12: … offering diversified products
… offering diversified products Bogie Frame - LHB Bogie Bolster - LHB Bogie Frame– Euro Project Railways Bogie Frame – Kolkata Metro Fully Assembled Bogie – Vande Bharat Wing Nut Valve Bonnet T Bolt Socket Joint Toothed Crusher Hammer Energy SUB 3 Inch - Female Valve Seat- 5 inch Tee Forging 11 Ramk
Slide 13: … with growing global footprints
… with growing global footprints (₹ in crores) With consistently growing exports * +169.9% 1,185 990 518 439 Sales & support office: Headquarters & Manufacturing • Detroit, USA Warehousing facility: facilities • Sao Paulo, Brazil • Shelbyville, USA Headquarters – Kolkata • Istanbul, Turkey • Hagerst
Slide 14: Way Forward
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Slide 15: Multiple vectors to accentuate growth and increase profitability
Multiple vectors to accentuate growth and increase profitability CLEARLY IDENTIFIED GROWTH STRATEGIES Continued focus on Continued investment in Continued cost and De-risking innovation and technology process optimization • Geographical – Further • Enhancing R&D capabilities to • Accelerated efforts
Slide 16: Well positioned to capture future growth
Well positioned to capture future growth Installed Capacity (in Tons)* 140,900 23,800 ❖ The forging capacity of the company will be augmented by 56,300 Tons by addition of warm forging press, upset forgings, 6000T press line ❖ The company has commissioned 23,800T of capacity as on 18th July 2023 and
Slide 17: Cold forgings capability
Cold forgings capability Total capacity of 25,000T The total project cost for the will be added project will be ₹ 125 Cr Cold Forging Press line to be Entire 100% capacity has commissioned by Q1FY25 been booked by an OEM, the contract of the same is valid for 7 years 16 Ramkrishna Forgings Limited I
Slide 18: Accelerated growth through organic route
Accelerated growth through organic route COMBINING FORCES FOR SUCCESS Rail Wheel Project ❖ Ramkrishna Forgings & Titagarh Rail Systems Consortium receives LOA for Manufacturing and Supplying of Forged Wheels for the Indian Railways ❖ Ramkrishna Forgings holds 51% in the Joint Venture and is a lead p
Slide 19: Accelerated growth through inorganic route (1/2)
Accelerated growth through inorganic route (1/2) FORAYING INTO NEWER ENHANCING PRODUCT PORTFOLIO EXPANDING THE EV PORTFOLIO SEGMENTS ACIL JMT Auto RKFL - TSUYO ❖ Lenders to ACIL Ltd have approved a ❖ Lenders to JMT Auto, a unit of Amtek Auto group, have ❖ Ramkrishna Forgings to acquire upto 51% reso
Slide 20: Accelerated growth through inorganic route (2/2)
Accelerated growth through inorganic route (2/2) Details & Rationale of the acquisition About Multitech Auto Private Limited o Ramkrishna Forgings (RKFL) to acquire Multitech Auto o Multitech Auto Pvt. Ltd. (MAPL), incorporated in 1994 in Private Limited and its wholly owned subsidiary Mal Jamshedpu
Slide 21: RKFL’s vision on acquiring MAPL
RKFL’s vision on acquiring MAPL • Ramkrishna Forgings aims to enter in the manufacturing of Trailer Axle Assembly and Differential Assembly with this acquisition. • Market size of both the above products is very significant. • The company aims to capture 20% of market share of Trailer Axle Assembly
Slide 22: EV programs running globally
EV programs running globally India / Asia Pacific 5 Customer ❖ 7 Programs North America Europe ➢ 6 Programs Europe 2 Customer India/ASIA Pacific ➢ 3 Programs North America 1 Customer ❖ 5 Programs ➢ 4 Programs ❖ Programs in Serial Productions ➢ Programs in Order book ➢ Swedish OEM awards business wor
Slide 23: MD’s insights and reflections
MD’s insights and reflections MR. NARESH JALAN Our company is committed to stringent capital allocation practices, aimed at improving return ratios and generating higher shareholder value. We prioritize sustainable growth and profitability by carefully evaluating investment opportunities and integra
Slide 24: Financial Prudence
Financial Prudence
Slide 25: Diversified revenues across segments & geographies
Diversified revenues across segments & geographies Q1FY24 By Industry Q1FY24 FY23 Q1FY23 By Geography By Segment 23% 21% Automobiles 78.8% 78.6% 80.3% Railways 3.2% 2.9% 2.1% 60% 17% Mining, Earth 79% Moving, Farm & 8.5% 8.4% 7.0% Gen. Engg Asia Europe North America Auto Non-Auto Oil & Gas 1.9% 1.9%
Slide 26: … coupled with increasing volumes
… coupled with increasing volumes Volume (tons) Realisation (Rs. Lac/ (ton) Volume (tons) Realisation (Rs. Lac/ (ton) +25% +21% 38,588 38,145 134,654 30,496 111,742 1.86 1.89 1.88 1.93 24,611 24,182 86,710 1.75 68,664 20,726 2.40 2.42 2.45 2.25 2.45 13,977 13,963 43,078 47,944 9,770 Q1FY23 Q4FY23 Q1
Slide 27: …. leading to higher utilizations
…. leading to higher utilizations Q1FY24 Q4FY23 Q1FY23 Particulars Installed Capacity Production Capacity Utilisation Production Capacity Utilisation Production Capacity Utilisation (MT) (%)* (MT) (%)* (MT) (%)* Ring Rolling 24,000 7,617 127% 8,047 134% 7,018 117% Forgings 46,000 11,944 104% 12,655
Slide 28: Strong key ratios
Strong key ratios ROCE (%) ROE (%) 19.3% 20.1% 19.0% 18.9% 17.8% 14.7% 5.8% 4.6% 3.1% 1.1% FY20* FY21** FY22 FY23 Q1FY24# FY20* FY21** FY22 FY23 Q1FY24# Fixed Asset Turnover (x) Net Debt to EBITDA (x) 1.7 1.8 4.7 4.7 1.5 2.5 0.8 0.9 1.6 1.55 FY20* FY21** FY22 FY23 Q1FY24# FY20* FY21** FY22 FY23 Q1FY
Slide 29: Financial Performance
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Slide 30: Key performance indicator (Standalone)
Key performance indicator (Standalone) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 22.1% 22.5% 22.4% 7.3% 8.0% 9.2% +28% +31% +63% 83,540 83,595 18,816 18,754 7,697 6,682 65,075 14,370 4,726 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Revenue* EBITDA* & EBIT
Slide 31: Key performance indicator (Consolidated)
Key performance indicator (Consolidated) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 21.4% 21.8% 21.5% 7.3% 7.7% 8.8% +28% +28% +53% 89,164 89,234 19,400 19,197 7,853 6,845 69,933 14,994 5,139 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Revenue* EBITDA* & EB
Slide 32: Income Statement
Income Statement Particulate (₹ in lakhs) FY19 FY20 FY21 FY22 FY23 Revenue from Operations 1,80,669 1,11,182 1,28,838 2,28,537 3,00,100 Cost of Goods Sold 92,650 50,673 64,240 1,03,077 1,44,374 Gross Profit 88,019 60,509 64,597 1,25,459 1,55,725 Gross Profit Margin 48.7% 54.4% 50.1% 54.9% 51.9% Empl
Slide 33: Balance Sheet
Balance Sheet Particulate (₹ in lakhs) FY19 FY20 FY21 FY22 FY23 Net block (Tangible assets) 123,445 137,376 149,385 155,903 173,955 Intangible assets 145 922 1,088 3,171 3,041 Investments 1,930 1,930 1,938 1,938 1,939 Other non-current assets 5,323 4,274 3,174 7,111 9,543 Total non ‐ current assets
Slide 34: Cash Flow Statement
Cash Flow Statement Particulate (₹ in lakhs) FY19 FY20 FY21 FY22 FY23 Cash Flow from Operating Activities Profit before Tax 18,244 1,442 4,148 26,617 35,565 Adjustment for Non-Operating Items 18,022 17,667 18,453 23,592 26,758 Operating Profit before Working Capital Changes 36,266 19,109 22,601 50,2
Slide 35: Our Commitment
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Slide 36: Delivering shared value to planet, people & stakeholders through our ESG Vision
Delivering shared value to planet, people & stakeholders through our ESG Vision ENVIRONMENTAL CONSCIOUSNESS ROBUST GOVERNANCE Following an effective governance model and focus on We will take sustained efforts towards creating a healthy business integrity to achieve business & sustainability planet
Slide 37: Preserving and protecting the environment across our operations (1/2)
Preserving and protecting the environment across our operations (1/2) Our Targets Key Initiatives 01 Waste & Water Management Carbon across scope 1 • Setting up an effluent treatment plant, sewage treatment plant, & 2 by 2050 Neutral cooling tower, and compressor on our plant premises Plant 5 Plant
Slide 38: Preserving and protecting the environment across our operations (2/2)
Preserving and protecting the environment across our operations (2/2) Key Initiatives 03 Energy Optimisation Category-wise emissions (tCO2e) in FY2022-23 • Developed a carbon-neutral strategy wherein key levers for 223,526 FY 2021-22 decarbonisation are optimizing energy use, transitioning FY 2022-2
Slide 39: Aspiring to be employer and partner of choice
Aspiring to be employer and partner of choice Our Targets Key Initiatives 01 Responsible Supply Chain Management increase in employee • Categorised suppliers based on criticality using factors such as 55% volunteering participation by 2030 business volume, procurement spent, non-substitutability & p
Slide 40: Aspiring to be employer and partner of choice
Aspiring to be employer and partner of choice Our Targets Key Initiatives 01 Policy Formulation increase in representation 10% of women in our leadership by 2030 • Refreshed Corporate Responsibility Policy as per Ministry of Corporate Affairs Companies (Corporate Social Responsibility Policy) Amendm
Slide 41: Q1FY24 Earnings Call
Q1FY24 EARNINGS CALL SCHEDULED ON: Friday, July 21, 2023 AT 16:30 HOURS INDIA TIME PRE-REGISTRATION LINK CLICK HERE TO JOIN THE CALL 40 Ramkrishna Forgings Limited Investor Presentation_2023
Slide 42: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Ramkrishna Forgings Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 43: Thank You
THANK YOU COMPANY : INVESTOR RELATIONS ADVISORS : Ramkrishna Forgings Limited CIN : L74210WB1981PLC034281 Orient Capital (a division of Link Group) Mr. Lalit Kumar Khetan (Whole Time Director & CFO) E: lalit.khetan@ramkrishnaforgings.com Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608 +91 7045121239 w