Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q4 FY2023 Earnings Presentation
41 slides from Ramkrishna Forgings's earnings presentation, Apr 28, 2023
Slide 1: Regulation 30 Announcement - Investors Presentation
RAMERISHNA FORGINGS LIMITED Date: 28t April, 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: Earnings Presentation: Q4 & FY23
Earnings Presentation : Q4 & FY23
Slide 3: Q4 & FY23 Highlights
Q4 & FY23 Highlights Q4 & FY23 Earnings Presentation
Slide 4: Strong growth backed by profitability (Standalone)
Strong growth backed by profitability (Standalone) (₹ in Lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin 22.1% 22.1% 22.5% 12.7% 7.7% 8.0% +22% +25% -23% 83,540 18,816 8,665 75,231 16,628 68,324 15,102 6,682 5,757 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Revenue* EBITD
Slide 5: Strong growth backed by profitability (Consolidated)
Strong growth backed by profitability (Consolidated) (₹ in Lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin 20.5% 22.2% 21.8% 11.7% 7.9% 7.7% +24% +31% -18% 89,164 19,400 8,393 77,748 17,299 71,872 14,768 6,845 6,104 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Revenue* EBI
Slide 6: Coupled with increasing volumes
… coupled with increasing volumes Volume (tons) Realisation (Rs. Lac/ (ton) Total Revenue Breakup (Rs. Lakhs.) +20% Particulars Q4FY23 Q4FY22 YoY Q3FY23 QoQ 38,588 32,038 33,390 Domestic Markets 49,037 41,758 17.4% 41,911 17.0% 1.80 1.90 1.89 Export Markets 33,811 26,169 29.2% 32,691 3.4% 24,611 21,
Slide 7: Leading to higher utilizations
…. leading to higher utilizations Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Installed Particulars Capacity Production Utilisation Production Utilisation Production Utilisation Production Utilisation Production Utilisation Production Utilisation Capacity (MT) (%)* Capacity (MT) (%)* Capacity (MT) (%)
Slide 8: Diversified revenues across segments & geographies
Diversified revenues across segments & geographies By Geography By Segment By Industry FY23 FY23 9MFY23 FY22 21% 25% Automobiles 78.6% 79.3% 81.1% 60% 15% 79% Railways 2.9% 2.8% 1.7% Asia Europe North America Auto Non-Auto Mining, Earth Moving, 8.4% 8.0% 7.6% FY22 Farm & Gen. Engg 19% 30% Oil & Gas
Slide 9: About Ramkrishna Forgings
About Ramkrishna Forgings Q4 & FY23 Earnings Presentation
Slide 10: One of the largest forging players in India
One of the largest forging player in India Key Highlights Manufacturer and supplier Global presence with Sales 2nd largest forging player Promoter possessing multi- Continued focus on Longstanding relationship of a variety of auto and & support office across 4 in India with over 40 years decade forg
Slide 11: With over four decades of unique capabilities
… with over four decades of unique capabilities Commenced ring rolling Commissioned 7,000T press line with Commissioned 2 press Press Line. machining facilities lines of Commissioned a Warm 2007 3,150T and 4,500T. In-house R&D team Forging Line and a Commenced supplies to received accreditation Fabr
Slide 12: At strategic locations giving us competitive edge
… at strategic locations giving us competitive edge Proximity to automobile manufacturing 1 hubs & key suppliers • 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 log
Slide 13: Demonstrating superior performance
… demonstrating superior performance* 23 1,87,100 87% 1,34,654 Countries Served Installed Capacity Capacity Utilisation Sales Volume 21% YoY ₹ 3,001 cr 100% 3% ₹ 668 cr Revenue Dividend# Total Turnover EBITDA 31% YoY from EV 27% YoY 22.3% 19.3% 17.8% 1.6x EBITDA Margin ROCE ROE Net Debt to EBITDA *A
Slide 14: Offering diversified products
… offering diversified products 1 Front Axle & Steering 5 Rear Axle Crown Wheel Pinion I Beam Knuckle Differential Case Differential 3 Suspension & Case Cover Steering Arm Tie Rod Arm 2 Engine Chassis 4 Transmission Spindle Crankshaft Sector Shaft Front Hub Camshaft Rear Axle Shaft BC Lever Assembly
Slide 15: Across diversified segments
… across diversified segments Tractors & Tillers Earth Moving Bucket Backhoe Bucket Shovel 1,2,3 & 4 Cyl Forged Crankshafts Track Link Track Roller Bucket Tooth Crown Wheel & Pinion Rear Axle Shafts Transmission Shafts & Gears Pivot Pin Prop Shaft Bearing Centre 14 Q4 & FY23 Earnings Presentation
Slide 16: Across diversified industries
… across diversified industries Railways Energy Bogie Frame Bogie Bolster Wing Nut Valve Bonnet Screw Coupling Draw Gear Assembly Toothed Crusher Hammer T Bolt Socket Joint Hanger Anti Roll Bar Assembly 15 Q4 & FY23 Earnings Presentation
Slide 17: With growing global footprints
… with growing global footprints (₹ in crores) With consistently growing exports * +169.9% 1,185 990 518 439 Headquarters & Manufacturing Sales & support office: Warehousing facility: • Shelbyville, USA facilities • Detroit, USA • Hagerstown, USA Headquarters – Kalkata • Sao Paulo, Brazil • Monterre
Slide 18: Way Forward
Way Forward Q4 & FY23 Earnings Presentation
Slide 19: Multiple vectors to accentuate growth and increase profit
Multiple vectors to accentuate growth and increase profit ➢ Geographical – Further diversification into international markets ➢ Sector – Increasing the gamut of Continued focus on products that are currently diversification manufactured towards non- automotive customers ➢ Product – Diversification i
Slide 20: Well positioned to capture future growth
Well positioned to capture future growth Installed Capacity 1,17,100 • The forging capacity of the company will be augmented by 56,300 Tons by addition of warm forging press, upset forgings, 6000T press line 46,000 24,000 • The capacities for the warm forgings and new technology totaling to 18,200T
Slide 21: Warm Forgings capability
Warm Forgings capability • 5 Station, 2000T fully automated Warm Forging Press from Kurimoto, Japan, with walking beam concept - with capacity of 9,900T • 2 Station, 630T fully automated screw press from Enomoto, Japan with capacity of 4,500T • Product Families - Differential Gears & Differential Pi
Slide 22: Acquiring Growth (1/2)
Acquiring Growth (1/2) COMBINING FORCES FOR SUCCESS EXPANDING THE EV PORTFOLIO Rail Wheel Project RKFL - TSUYO o Ramkrishna Forgings & Titagarh Wagons Consortium receives LOA Ramkrishna Forgings to acquire upto 51% voting rights in for Manufacturing and Supplying of Forged Wheels for the Indian TSUY
Slide 23: Acquiring Growth (2/2)
Acquiring Growth (2/2) ACQUISITION & EXPANSION ACIL JMT Auto o Lenders to ACIL Ltd have approved a resolution plan by • Lenders to JMT Auto, a unit of Amtek Auto group, have approved a Ramkrishna Forgings Limited resolution plan by Ramkrishna Forgings Limited o The acquisition will help the company
Slide 24: EV programs running globally
EV programs running globally India / Asia Pacific 4 Customer ✓ 7 Programs ❑ 4 Programs Europe North America 2 Customer Europe ❑ 3 Programs North America India/ASIA Pacific 1 Customer ✓ 5 Programs ❑ 4 Programs ✓ Programs in Serial Productions ❑ Programs in Order book ❑ Swedish OEM awards business wor
Slide 25: Disciplined capital allocation priorities
Disciplined capital allocation priorities ₹ in Lakhs Particulars The Company expect to achieve a Mar’23 Mar’22 01 healthy revenue growth in the future period Gross Debt 1,24,100* 1,57,740* The repayment of debt and Net Debt 1,09,367 1,33,632 payment of dividend will be commensurate with increased ca
Slide 26: With improving key ratios
… with improving key ratios Gross Margin (%) EBIDTA Margin (%) 54.9% 56. 0% 23. 5% 23.1% 55. 0% 54. 0% 23. 0% 51.9% 53. 0% 22.3% 52. 0% 22. 5% 51. 0% 50. 0% 22. 0% 49. 0% 48. 0% 21. 5% 0 0.5 1 1.5 2 2.5 3 3.5 0 0.5 1 1.5 2 2.5 3 3.5 FY22 FY23 FY22 FY23 PBT Margin (%) PAT Margin (%) 12. 0% 9.5 % 11.9
Slide 27: With improving key ratios
… with improving key ratios ROCE (%) ROE (%) 19.3% 18.9% 17.8% 14.7% 5.8% 4.6% 3.1% 1.1% FY20* FY21** FY22 FY23 FY20* FY21** FY22 FY23 Fixed Asset Turnover (x) Net Debt to EBITDA (x) 1.7 1.5 4.7 4.7 2.5 0.8 0.9 1.6 FY20* FY21** FY22 FY23 FY20* FY21** FY22 FY23 ROCE- EBIT Less Other Income / (Net Deb
Slide 28: Financial Performance
Financial Performance Q4 & FY23 Earnings Presentation
Slide 29: Income Statement
Income Statement Particulate (₹ in lakhs) FY21 FY22 FY23 Revenue from Operations 1,28,838 2,28,537 3,00,100 Cost of Material Consumed 64,083 1,21,423 1,60,368 Change in Inventories of Finished goods & Work in Progress 157 -18,345 -15,994 Cost of services - - - Purchases of stock-in-trade - - - Total
Slide 30: Balance Sheet
Balance Sheet Equity & Liabilities (₹ in lakhs) FY21 FY22 FY23 Assets (₹ in lakhs) FY21 FY22 FY23 Non ‐ Current Assets Equity Property, plant and equipment 1,22,183 1,43,394 1,65,447 Equity Share Capital 3,193 3,198 3,198 Capital work‐in‐progress 27,202 12,509 8,508 Other Equity 85,804 1,06,210 1,29
Slide 31: Cash Flow
Cash Flow Particulate (₹ in lakhs) FY21 FY22 FY23 Cash Flow from Operating Activities Profit before Tax 4,148 26,617 35,565 Adjustment for Non-Operating Items 18,453 23,592 26,758 Operating Profit before Working Capital Changes 22,601 50,210 62,322 Changes in Working Capital -9,394 -41,746 22,177 Ca
Slide 32: Our Commitment
Our Commitment Q4 & FY23 Earnings Presentation
Slide 33: Q4 FY23 Highlights | Our ESG Vision
Q4 FY23 Highlights | Our ESG Vision The vision is to commit to Environmental Consciousness preserving and protecting the We will take sustained efforts towards creating a healthy planet by reducing our carbon environment across its operations footage, mitigating climate change and optimizing our bus
Slide 34: Q4 FY23 Highlights | Environmental Initiatives
Q4 FY23 Highlights | Environmental Initiatives Clean Energy Our Commitment: To be powered by 50% green energy by 2028 Keeping in line with India's commitment to sourcing half of its energy from non-fossil fuel sources by 2030, we at RKFL have adopted various energy conservation techniques and clean
Slide 35: Q4 FY23 Highlights | Environmental Initiatives
Q4 FY23 Highlights | Environmental Initiatives Product Stewardship Considering the upcoming regulations such as Carbon Border Adjustment Mechanism (CBAM), we are conducting a Life Cycle Assessment for three of our products - Front Axel Beam, Crown Wheel and Knuckles The study will help us in identif
Slide 36: Q4 FY23 Highlights | Social Initiatives
Q4 FY23 Highlights | Social Initiatives Talent Development Our Commitment: Train 100% of our employees on ESG by 2023 and on Human Rights by 2025 In March 2023, we conducted capacity-building workshops at our headquarters in Kolkata and manufacturing units in Jamshedpur on ESG Awareness, Human Right
Slide 37: Q4 FY23 Highlights | Social Initiatives
Q4 FY23 Highlights | Social Initiatives Community Empowerment Our Commitment: Increase Employee Volunteering to 55% by 2030 Community Development is at the core of our heart. To understand the needs of the community and respond in an effective manner we have set up a dedicated team of professionals.
Slide 38: Q4 FY23 Highlights | Governance Initiatives
Q4 FY23 Highlights | Governance Initiatives Policy Structure Our Commitment: Build effective policies and strengthen our outreach In an effort to build transparency and strong corporate culture, we have refreshed our existing policies and introduced new policies. These policies aim to establish the
Slide 39: Q4 & FY23 Earnings Call
Q4 & FY23 EARNINGS CALL SCHEDULED ON: Friday, January 28, 2023 AT 16:30 HOURS INDIA TIME PRE-REGISTRATION LINK CLICK HERE TO JOIN THE CALL 38 Q4 & FY23 Earnings Presentation
Slide 40: 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 41: Company and Investor Relations Contacts
COMPANY : Ramkrishna Forgings Limited CIN : L74210WB1981PLC034281 Mr. Lalit Kumar Khetan (Whole Time Director & CFO) E: lalit.khetan@ramkrishnaforgings.com www.ramkrishnaforgings.com INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608
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