Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Investor Presentation (June 2022)
31 slides from Ramkrishna Forgings's investor presentation, June 2022
Slide 1: Corporate Presentation June 2022
[ ] 2022 Confidential Corporate Presentation June 2022
Slide 2: Disclaimer
Disclaimer Important Notice: • restrictive covenants in our financing agreements limiting our operations and financial flexibility; • failure to execute our strategies; THIS PRESENTATION IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF • failure to achieve the target
Slide 3: Who are we?
Who are we? 3
Slide 4: Vision, mission and core values
Vision, mission and core values To be the most dependable and preferred supplier of forged and rolled components for the railways, automobile, mining, earthmoving, oil exploration, farm equipment, wind energy, bearing and general engineering industry by providing world class products at competitive
Slide 5: RKFL by the numbers
RKFL by the numbers 41.5% 17 Export revenue mix 1,87,100T 77.2% Countries served 4.8% YoY increase Installed capacity Capacity utilisation 1,11,742T ₹2,320cr ₹517cr Sales volume Revenue 2.0% EBITDA 42.2% YoY increase 80.0% YoY increase Total turnover from EV 132.1% YoY increase 22.3% 18.4% EBITDA ma
Slide 6: About us
About us Key highlights Range of products forged Manufacturer and supplier of a variety Installed capacity Weight range of products forged (in kgs) of auto and non-auto components Press 1 – 12,500 T 80-200 Global presence with footprints in Press 2 – 6,300 T 40-65 North America and Europe Press
Slide 7: Brief corporate journey
Brief corporate journey Commissioned a hollow Commissioned 2 press lines with annual spindle line with annual Commenced ring rolling installed capacities of 3,150 MTs and 4,500 installed capacity of 10,200T press line with MTs machining facilities Launched IPO Commenced supplies to leading Tier I cu
Slide 8: What differentiates us?
What differentiates us? 8
Slide 9: Diversified product profile offering (1/3)
Diversified product profile offering (1/3) Front Axle & Steering Rear Axle Crown Wheel Pinion I Beam Knuckle Differential Case Differential Steering Arm Tie Rod Arm Engine Suspension & Chassis Transmission Case Cover Crankshaft Spindle Sector Shaft Front Hub Camshaft Rear Axle Shaft BC Lever Assembl
Slide 10: Diversified product profile offering (2/3)
Diversified product profile 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 10
Slide 11: Diversified product profile offering (3/3)
Diversified product profile offering (3/3) Railways Energy Bogie Frame Bogie Bolster Wing Nut Valve Bonnet Screw Coupling Draw Gear Assembly T Bolt Socket Joint Toothed Crusher Hammer Hanger Anti Roll Bar Assembly 11
Slide 12: Global footprint
Global footprint With consistently growing exports (1) Turkey, Istanbul Sales representative office India FY22 Headquarters – Kolkata Detroit, USA Germany 6 manufacturing facilities Sales office Sales representative office ▪ Jamshedpur – 3 ▪ Seraikela – Kharswan – 2 ▪ Howrah, West Bengal - 1 Hagerst
Slide 13: State-of-the-art manufacturing facilities
State-of-the-art manufacturing facilities… Rolling ✓ Rolling facility with robotics which can roll ◼ 6 large modern facilities in India >> Strategic location benefits coupled with crown wheels upto 500mm diameter and a economies of scale capacity to forge components from 15-70 kgs ◼ Technology led o
Slide 14: Strategically located providing us the competitive edge
…that are strategically located providing us the competitive edge Strategically located procurement and manufacturing base Proximity to automobile manufacturing All facilities located within the same region hubs and key suppliers ✓ RKFL’s facilities in eastern India are ✓ Better integration resultin
Slide 15: Technology leadership powered by in-house R&D and testing capabilities
Technology leadership powered by in-house R&D and testing capabilities Digital tools Impact In-house R&D and testing capabilities Auto CAD Unigraphics Product Enhanced innovation product quality Commercial computer aided Leading CAD/CAE/CAM design and drafting software software product application 6
Slide 16: Visionary management team
Visionary management team… Mahabir Prasad Jalan Naresh Jalan Chaitanya Jalan Chairman and Wholetime Director Managing Director Wholetime Director Lalit Kumar Khetan Rajesh Mundhra Milesh Gandhi Wholetime Director, Chief Company Secretary & Vice President – Marketing Financial Officer Sr. GM Finance
Slide 17: Backed by a strong governance structure
…backed by a strong governance structure Committed board of directors Strong governance standards Mahabir Prasad Jalan Naresh Jalan Chaitanya Jalan Chairman and Managing Director Wholetime Director 9 independent Wholetime Director directors as against statutory requirement of 7 directors Lalit Kumar
Slide 18: Strong operating and financial performance (1/2)
Strong operating and financial performance (1/2) Substantial capacity augmentation with highest revenue clocking in last 3 financial years, much ahead of pre-Covid levels… ₹ / crores Capacity utilisation 54.6% 62.0% 77.2% 187k 2,320 150k 153k 1,216 1,289 2019/20 2020/21 2021/22 2019/20 2020/21 2021/
Slide 19: Strong operating and financial performance (2/2)
Strong operating and financial performance (2/2) Improving operating and financial leverage… Opex as ₹ / crores % of 78.8% 82.3% 69.1% 4.8x 4.9x revenue 1.4x 1,602 1,061 0.9x 0.9x 2.6x 958 2019/20 2020/21 2021/22 2019/20 2020/21 2021/22 2019/20 2020/21 2021/22 Opex Fixed assets to turnover ratio Net
Slide 20: Delivering highest EBITDA in the last 8 quarters
Delivering highest EBITDA in the last 8 quarters Q42021/22 shows the results of a strong execution oriented approach leading to a good post Covid recovery and a strong turnaround Consolidated revenue and EBITDA for last 8 quarters ₹ / crores ₹ / crores EBITDA -4.2% -1.2% 18.0% 18.8% 20.8% 20.4% 22.7
Slide 21: Key ESG targets for RKFL
Key ESG targets for RKFL RKFL for environment consciousness The vision is to commit to preserving and protecting the environment across its operations 50% 2050 80% 100% 30% 50% Renewable energy mix by Achieve Carbon neutrality Of suppliers in same states Reduction in specific Decrease in overall was
Slide 22: Strategy for future growth
Strategy for future growth 22
Slide 23: Multiple vectors to accentuate growth and increase profit
Multiple vectors to accentuate growth and increase profit Clearly identified growth strategies Continued growth in 5 12 33 forging content in vehicles with existing customer base(1) 2011/12 2016/17 2021/22 ▪ Geographical – Further diversification into international markets Continued focus on ▪ Secto
Slide 24: Growing presence in EV globally
Growing presence in EV globally Europe India / Asia Pacific 1 Customer ▪ 3 Customer ❑ 1 Programs ✓ 6 Programs North America ❑ 3 Programs 1 Customer ✓ 4 Programs ❑ 2 Programs ✓ Programs in Serial Productions ❑ Programs in Order book In 2021/22, 2.0% of total turnover on a consolidated basis came from
Slide 25: Appendix
Appendix 25
Slide 26: Organisation structure and shareholding
Organisation structure and shareholding Latest organisation structure(1) Latest shareholding (2) Ramkrishna 46.2% Forgings 33.5% Limited 1.4% 13.5% 5.4% Promoter & Promoter Group DII Globe All Ramkrishna FII India Aeronautics Ramkrishna AIF Services Private Forgings LLC Others (100% subsidiary) Limi
Slide 27: Financial snapshot
Financial snapshot RKFL Consolidated Q42020/21 vs Q42021/22 ₹ /crores RKFL Consolidated 2020/21 vs 2021/22 ₹ /crores Total revenue ↑ 38.1% 520 719 ↑80.0% 2,320 1,289 106 EBITDA ↑ ₹ 43 cr 149 ↑ ₹ 294 cr 517 223 ↑ ₹ 22 cr ↑ ₹ 221 cr PBT 75 253 53 32 PAT ↑ ₹ 50 cr ↑ ₹ 177 cr 84 198 34 21 PY CY 27 Note:
Slide 28: Consolidated financials – Balance sheet
Consolidated financials – Balance sheet Assets (₹ /crores) 2019/20 2020/21 2021/22 Equity and Liabilities (₹ /crores) 2019/20 2020/21 2021/22 Non - Current Assets 1,437 1,551 1,677 Total Equity 876 883 1,078 Property Plant & Equipments 1,160 1,224 1,436 Share Capital 33 32 32 CWIP 219 276 129 Reserv
Slide 29: Consolidated financials – Income statement
Consolidated financials – Income statement ₹ /crores 2019/20 2020/21 2021/22 Revenue from operations 1,216 1,289 2,320 Cost of goods sold (1) 594 640 1,161 Gross profit 622 648 1,160 Gross profit margin 51.2% 50.3% 50.0% Employee cost 103 96 127 Power and fuel 97 94 152 Other expenses 215 236 363 EB
Slide 30: Consolidated financials – Cash flow statement
Consolidated financials – Cash flow statement ₹ /crores 2019/20 2020/21 2021/22 Cash flow from operating activities PBT 15 32 253 Depreciation 121 117 169 Adjustments (including finance costs) 61 73 78 (Increase)/ Decrease in working capital 65 (80) (410) Less: Taxes paid (7) (1) (48) Net cash flow
Slide 31: Thank you
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