Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Edelweiss Emerging Ideas Conference 2022
35 slides from Ramkrishna Forgings's conference presentation, Dec 5, 2022
Slide 1: Intimation of Analyst/Institutional Investor Meet - Edelweiss Conference
RAMERISHNA FORGINGS LIMITED Date: 5 December, 2022 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 NS
Slide 2: Corporate Presentation December 2022
Corporate Presentation December 2022 1
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: About us
About us Manufacturer and supplier of a variety of Global presence with footprints in North 2nd largest forging player in India with auto and non-auto components America and Europe over 30 years’ of experience Key Highlights Promoter possessing multi-decade Continued focus on diversification with Lo
Slide 5: RKFL by the Numbers
RKFL by the Numbers* 17 1,87,100 77.2% 1,11,742 Sales Volume Countries Served Installed Capacity Capacity Utilisation 42% YoY ₹ 2,285 cr 43.6% 2% ₹ 527 cr Revenue Export Revenue Mix EBITDA 77% YoY Total Turnover From EV 8 % YoY 129% YoY 23.1% 14.7% 18.9% 1.2x EBITDA Margin ROCE ROE Net Debt to EBITD
Slide 6: Journey over four decades
Journey over four decades 1981 2004 2006 2007 2013 Investment Commenced ring Received equity from UTI Venture rolling press line and debt funding Company with machining from IFC Incorporation Funds Launched IPO facilities Management Equity funding Company (Ascent from Wayzata for Capital Limited) au
Slide 7: Diversified product portfolio offering (1/3)
Diversified product portfolio offering (1/3) Front Axle & Steering Rear Axle Crown Wheel Pinion I Beam Knuckle Differential Case Differential Case Cover Steering Arm Tie Rod Arm Engine Suspension & Chassis Transmission Spindle Crankshaft Sector Shaft Front Hub Camshaft Rear Axle Shaft BC Lever Assem
Slide 8: Diversified product portfolio offering (2/3)
Diversified product portfolio offering (2/3) 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 Corporate Presentation
Slide 9: Diversified product portfolio offering (3/3)
Diversified product portfolio offering (3/3) 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 Corporate Presentation 8
Slide 10: Global footprint
Global footprint With consistently growing exports* 43.6% 40.2% 34.1% Headquarters & Manufacturing Sales representative office: Warehousing facility: facilities • Detroit, USA • Shelbyville, USA Headquarters – Kolkata • Sao Paulo, Brazil • Hagerstown, USA 6 manufacturing facilities • Istanbul, Turke
Slide 11: State of the art manufacturing facilities
State of the art manufacturing facilities… 1 2 3 Rolling Forging Machined • Rolling facility with robotics which can roll crown • First company in India to have fully automated • State of the art machinery and capabilities which wheels upto 500mm diameter and a capacity to forge 12,500T wedge press
Slide 12: Strategically located facilities providing competitive edge
…that are strategically located providing us the 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 raw material Less chance of supply interruptions Lo
Slide 13: Accreditations & certifications
Accreditations & certifications IATF 16949:2016 ISO 14001:2015 ISO 9001:2015 QMS for Automotive Environmental QMS Production Management ISO 45001:2018 ISO/TS 22163:2017 EN 15085-2:2020 Occupational Health and Quality & Business Welding of Railway Vehicles and Safety Management Management Systems for
Slide 14: Multiple vectors to accentuate growth and increase profit
Multiple vectors to accentuate growth and increase profit Continued focus on diversification • Geographical – Further diversification into international markets • Sector – Increasing the gamut of products that are currently manufactured towards non-automotive customers • Product – Diversification in
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 16: Strong growth backed by profitability (Standalone)
Strong growth backed by profitability (Standalone) (₹ in Lakhs) Revenue EBITDA* & EBITDA Margin PAT & PAT Margin 24.04% 22.08% 22.30% 8.66% 7.26% 8.39% +32% +22% +28% 76,255 17,006 6,394 65,075 13,918 14,370 57,894 5,011 4,726 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Revenue EB
Slide 17: Strong growth backed by profitability (Consolidated)
Strong growth backed by profitability (Consolidated) (₹ in Lakhs) Revenue EBITDA* & EBITDA Margin PAT & PAT Margin 22.64% 21.44% 21.27% 7.61% 7.35% 8.15% +42% +34% +53% 82,444 17,538 6,723 69,933 14,994 13,107 5,139 57,882 4,406 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Revenue
Slide 18: Backed by strong volume growth
… backed by strong volume growth Volume (tons) Realisation (Rs. Lac/ (ton) Total Revenue Breakup (Rs. Lakhs.) +14% +8% Particulars Q2FY23 Q2FY22 YoY Q1FY23 QoQ 30,496 32,180 4.26 4.43 28,279 4.04 Domestic Markets 43,626 28,820 51.4% 39,925 9.3% 1.86 1.92 20,531 1.76 Export Markets 32,109 28,674 12.0
Slide 19: With improving return ratios
… with improving return ratios ROCE (%) Net Debt to EBITDA (X) ROE (%) 17.90% 4.66 4.65 18.87% 19.44% 14.73% 2.54 5.80% 1.95 4.58% 3.14% 1.10% FY20* FY21** FY22 H1FY23 # FY20* FY21** FY22 H1FY23 # FY20* FY21** FY22 H1FY23# Net Debt to Equity (x) Fixed Asset Turnover (x) 1.22 1.76 1.2 1.47 1.08 0.81
Slide 20: Strong operating and financial performance
Strong operating and financial performance (₹ in Crores) Installed Capacity Revenue +25% +105% 1,87,100 2,285 1,50,000 1,52,550 1,288 1,112 FY20 FY21 FY22 FY20 FY21 FY22 EBITDA* PAT +158% +1970% 527 207 204 230 28 10 FY20 FY21 FY22 FY20 FY21 FY22 *Excluding Other Income Note: Rounded off to the near
Slide 21: Manufacturing capacity and utilization trend
Manufacturing capacity and utilization trend Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Installed Particulars Capacity Production Utilisation Production Utilisation Production Utilisation Production Utilisation Production Utilisation Production Utilisation Capacity (MT) (%)* Capacity (MT) (%)* Capaci
Slide 22: Capital allocation - update
Capital allocation - update ₹ in Lakhs Particulars Mar’22 Sep’22 Long Term Debt (incl. current 99,185 93,536 Maturities of Long Term Debt) Short Term Debt 58,554 38,389 Total Debt 1,57,740 1,31,925 The Company expect to achieve a 01 revenue growth of 20% CAGR over a period of next 3 years The repaym
Slide 23: Key Initiatives
KEY INITIATIVES
Slide 24: Improving Revenue Mix
IMPROVING REVENUE MIX RAMKRISHNA FORGINGS LIMITED | 23
Slide 25: Diversified Revenues
Diversified Revenues H1FY23 By Geography By Segment By Industry FY22 H1 FY23 18% 25% 81.1% 81.6% Automobiles 14% 61% 1.7% 2.5% 82% Railways Asia Europe North America Auto Non-Auto 7.6% 6.5% FY22 19% Mining, Earth Moving, Farm & Gen. Engg 30% 0.9% 1.6% 56% Oil & Gas 14% 81% 8.7% 7.8% Asia Europe Nort
Slide 26: EV Presence
EV PRESENCE RAMKRISHNA FORGINGS LIMITED | 25
Slide 27: EV programs running globally
EV programs running globally India / Asia Pacific 3 Customer ✓ 6 Programs ❑ 3 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 28: Well positioned to capture future growth
Well positioned to capture future growth Installed Capacity 1,17,100 • We are adding the following Capacities - Enomoto 630T Press RA Shaft -Press line 46,000 6000 T Press line 24,000 Upsetter Ring Rolling Forgings Press • Will be ready by the above new Capacities by the Financial year 2023-24 and w
Slide 29: ESG
ESG RAMKRISHNA FORGINGS LIMITED | 28
Slide 30: Environmental
Environmental Environmental Consciousness | H1 2023 Highlights United Nations Sustainable Development Goals ENVIRONMENTAL Adopting Clean Energy Practices CONSCIOUSNESS Our commitment is to be powered by 50% green Elements of our work impact each of the SDGs, but we focus our efforts on those which h
Slide 31: Environmental - Keep your city clean project
Environmental Environmental Consciousness | Case study The Challenge Case study: The soaring urban population and increasing consumption has led to rapid increase in waste across our cities in India. Segregation of waste into biodegradable and dry materials at the Keep your city clean source is crit
Slide 32: Social
Social Social | H1 2023 Highlights United Nations Sustainable Development Goals SOCIAL Rewarding workplace At RKFL, our approach to our Elements of our work impact each of the SDGs, but we focus our social pillar is three-pronged : 100% employees trained on ESG by 2023. efforts on those which have t
Slide 33: Robust Governance
Robust Governance Robust Governance| H1 2023 Highlights United Nations Sustainable Development Goals ROBUST GOVERNANCE Effective Corporate Governance Structure Elements of our work impact each of the SDGs, but we focus our ESG Working Committee to help integrate ESG across efforts on those which hav
Slide 34: Safe harbor
Safe harbor THIS PRESENTATION (IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF RAMKRISHNA FORGINGS LIMITED (THE “COMPANY”) OR ITS SUBSIDIARIES (TOGETHER WITH THE COMPANY,THE “GROUP’) The material that follows is a Presentation of general background information about
Slide 35: Thank You
THANK YOU 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. Bhavya Shah +91
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