Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q3 FY23 Earnings Presentation
38 slides from Ramkrishna Forgings's earnings presentation, December 2022
Slide 1: Earnings Presentation: Q3 & 9M FY23
Earnings Presentation : Q3 & 9M FY23
Slide 2: Q3 & 9M FY23 Highlights
Q3 & 9M FY23 Highlights Q3 & 9MFY23 Earnings Presentation
Slide 3: Strong growth backed by profitability (Standalone)
Strong growth backed by profitability (Standalone) (₹ in Lakhs) Revenue EBITDA* & EBITDA Margin PAT & PAT Margin 23.1% 22.3% 22.1% 7.4% 8.4% 7.7% +24% +19% +28% 76,255 75,231 17,006 16,628 6,394 5,757 60,605 14,021 4,512 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Revenue EBITDA*
Slide 4: Strong growth backed by profitability (Consolidated)
Strong growth backed by profitability (Consolidated) (₹ in Lakhs) Revenue EBITDA* & EBITDA Margin PAT & PAT Margin 23.5% 21.3 % 22.2% 7.5% 8.2% 7.9% +29% +23% +35% 82,444 77,748 17,538 17,299 6,723 6,104 14,118 60,132 4,535 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Revenue EBITD
Slide 5: Coupled with increasing volumes
… coupled with increasing volumes Volume (tons) Realisation (Rs. Lac/ (ton) Total Revenue Breakup (Rs. Lakhs.) +13% Particulars Q3FY23 Q3FY22 YoY Q2FY23 QoQ 32,180 33,390 29,520 Domestic Markets 41,911 34,272 22.3% 43,626 -3.9% 1.92 1.90 20,531 20,842 1.75 Export Markets 32,691 25,969 25.9% 32,109 1
Slide 6: Leading to higher utilizations
…. leading to higher utilizations Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Installed Particulars Capacity Production Utilisation Production Utilisation Production Utilisation Production Utilisation Production Utilisation Production Utilisation Capacity (MT) (%)* Capacity (MT) (%)* Capacity (MT) (%)
Slide 7: Diversified revenues across segments & geographies
Diversified revenues across segments & geographies By Geography By Segment By Industry 9MFY23 9MFY23 FY22 17% 21% Automobiles 79.3% 81.1% 12% 71% 79% Railways 2.8% 1.7% Asia Europe North America Auto Non-Auto Mining, Earth Moving, 8.0% 7.6% FY22 Farm & Gen. Engg 19% 30% Oil & Gas 1.6% 0.9% 56% 14% 8
Slide 8: About Ramkrishna Forgings
About Ramkrishna Forgings Q3 & 9MFY23 Earnings Presentation
Slide 9: One of the largest forging player in India
One of the largest forging player in India Key Highlights Manufacturer and supplier Global presence with 2nd largest forging player Promoter possessing multi- Continued focus on Longstanding relationship of a variety of auto and footprints in North America in India with over 30 years decade forgings
Slide 10: 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 11: With state of the art manufacturing facilities
… with state of the art manufacturing facilities 1 2 3 Ring Rolling Press Machined • Ring Rolling facility with robotics which can roll • First company in India to have fully automated • State of the art machinery and capabilities which crown wheels upto 500mm diameter and a capacity 12,500T wedge p
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* 17 1,87,100 77.2% 1,11,742 Countries Served Installed Capacity Capacity Utilisation Sales Volume 42% YoY ₹ 2,285 cr 43.3% 2% ₹ 527 cr Revenue Export Revenue Mix Total Turnover EBITDA 77% YoY 7.8% YoY from EV 129% YoY 23.1% 14.7% 18.9% 2.5x EBITDA Margin ROCE ROE
Slide 14: Offering diversified products
… offering diversified products 1 Front Axle & Steering 5 Rear Axle Crown Wheel Pinion 1 2 3 4 5 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 Leve
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 15 Q3 & 9MFY23 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 16 Q3 & 9MFY23 Earnings Presentation
Slide 17: With growing global footprints
… with growing global footprints With consistently growing exports * 43.3% +5% 40.2% 39.5% Headquarters & Manufacturing Sales representative office: Warehousing facility: facilities • Detroit, USA • Shelbyville, USA Headquarters – Kalkata • Sao Paulo, Brazil • Hagerstown, USA 6 manufacturing facilit
Slide 18: Way Forward
Way Forward Q3 & 9MFY23 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 • We are adding 56300 Tons capacity. 46,000 • Will be ready by the above new Capacities by September 2023 and with this 24,000 capacities, we will be able to achieve a topline of Rs 5000 Crores (at current commodity price) Ring Rol
Slide 21: 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 22: Disciplined capital allocation priorities
Disciplined capital allocation priorities ₹ in Lakhs Particulars Mar’22 Dec’22 Long Term Debt (incl. current 99,185 91,756 Maturities of Long Term Debt) Short Term Debt 58,554 36,933 Total Debt 1,57,740 1,28,689 The Company expect to achieve a 01 revenue growth of 20% CAGR over a period of next 3 ye
Slide 23: With improving key ratios
… with improving key ratios Gross Margin (%) EBIDTA Margin (%) 57. 0% 25. 00% 24. 50% 55. 0% 53.8% 24. 00% 23. 50% 23.13% 53. 0% 51.7% 23. 00% 51. 0% 22. 50% 22.10% 22. 00% 49. 0% 21. 50% 21. 00% 47. 0% 20. 50% 45. 0% 20. 00% 0 0.5 1 1.5 2 2.5 3 3.5 0 0.5 1 1.5 2 2.5 3 3.5 Q3FY22 Q3FY23 Q3FY22 Q3FY2
Slide 24: With improving return ratios
… with improving return ratios ROCE (%) Net Debt to EBITDA (X) Fixed Asset Turnover (x) 17.93% 4.66 4.65 1.74 14.73% 1.47 2.54 0.81 0.86 5.80% 1.89 4.58% FY20* FY21** FY22 9MFY23# FY20* FY21** FY22 9MFY23 # FY20* FY21** FY22 9MFY23 # # Annualized. ROCE- EBIT Less Other Income / (Net Debt + Equity) N
Slide 25: Acquiring Growth: Ramkrishna Forgings to acquire JMT Auto
Acquiring Growth: Ramkrishna Forgings to acquire JMT Auto Details of the acquisition About JMT Auto o Lenders to JMT Auto, a unit of o JMT Auto has significant Amtek Auto group, have approved expertise in the auto sector with a resolution plan by Ramkrishna capabilities in heat treatment Forgings Li
Slide 26: Historical Performance
Historical Performance Q3 & 9MFY23 Earnings Presentation
Slide 27: Income Statement
Income Statement Particulate (₹ in lakhs) FY20 FY21 FY22 Revenue from Operations 1,11,182 1,28,838 2,28,537 Cost of Material Consumed 55,611 64,083 121,423 Change in Inventories of Finished goods & Work in Progress (4,938) 157 (18,345) Cost of services - - - Purchases of stock-in-trade - - - Total R
Slide 28: Balance Sheet
Balance Sheet Equity & Liabilities (₹ in lakhs) FY20 FY21 FY22 Assets (₹ in lakhs) FY20 FY21 FY22 Non ‐ Current Assets Equity Property, plant and equipment 1,15,732 1,22,183 1,43,394 Equity Share Capital 3,261 3,193 3,198 Capital work‐in‐progress 21,644 27,202 12,509 Other Equity 84,382 85,804 1,06,
Slide 29: Cash Flow
Cash Flow Particulate (₹ in lakhs) FY20 FY21 FY22 Cash Flow from Operating Activities Profit before Tax 1,442 4,148 26,617 Adjustment for Non-Operating Items -17,667 -18,453 -23,621 Operating Profit before Working Capital Changes 19,109 22,601 50,238 Changes in Working Capital 6,678 -9,394 -41,774 C
Slide 30: Our Commitment
Our Commitment Q3 & 9MFY23 Earnings Presentation
Slide 31: Our Commitments | Q3 2022 Highlights
Our Commitments | Q3 2022 Highlights Environmental Consciousness RKFL is committed to taking sustained efforts towards creating a healthy planet by reducing our carbon footprint, mitigating climate change and optimizing our business operations Valuable Partnership We are also committed to building S
Slide 32: Environmental Initiatives | Q3 2022 Highlights
Environmental Initiatives | Q3 2022 Highlights Environmental Social Governance 01 02 Clean Energy Practices Energy Optimisation Our Goal: To be powered by 50% green energy by 2028 Our Goal: To be Carbon Neutral by 2050 As the pressure on fossil fuels in the country is increasing, RKFL is striving to
Slide 33: Environmental Initiatives | Q3 2022 Highlights
Environmental Initiatives | Q3 2022 Highlights Environmental Social Governance 03 04 Product Stewardship Waste & Water Management Our Goal: Recycle 100% of our water use by 2025; Decrease 50% of our waste generation by 2030 EU has agreed provisionally on Carbon Border Adjustment Mechanism We have co
Slide 34: Social Initiatives | Q3 2022 Highlights
Social Initiatives | Q3 2022 Highlights Environmental Social Governance 01 02 Empowering our community Talent Development Our Goal: Increase Employee Volunteering to 55% by 2030 Our Goal: Train 100% of our employees on ESG by 2023 We interact with the community through our engagement team to Capacit
Slide 35: Governance Initiatives | Q3 2022 Highlights
Governance Initiatives | Q3 2022 Highlights Environmental Social Governance 01 02 Corporate Governance Policy Structure Our Goal: Build effective policies and strengthen our outreach Effective board structure and management are critical to being profitable and In order to create transparency and inc
Slide 36: Q3 & 9M FY23 Earnings Call
Q3 & 9M FY23 EARNINGS CALL SCHEDULED ON: Friday, January 20, 2023 AT 16:30 HOURS INDIA TIME PRE-REGISTRATION LINK CLICK HERE TO JOIN THE CALL 36 Q2 & H1FY23 Earnings Presentation
Slide 37: 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 38: Company: Ramkrishna Forgings Limited
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