Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q3 FY2024 Earnings Presentation
40 slides from Ramkrishna Forgings's earnings presentation, Jan 18, 2024
Slide 1: Stock exchange filing cover letter for Q3 & 9M FY24 presentation
RAMHKRISHNA FORGINGS LIMITED Date: 18 January, 2024 To To The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited P] Towers “Exchange Plaza” C-1, Block G Dalal Street Bandra- Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai- 400051 BSE SCRIP CODE: 532527 N
Slide 2: Investor Presentation - January 2024
Investor Presentation - January 2024 Investor Presentation - January 2024 The Journey Has Just Begun… The Journey Has Just Begun…
Slide 3: About Ramkrishna Forgings
About Ramkrishna Forgings
Slide 4: MD's insights and reflections
MD’s insights and reflections MR. NARESH JALAN At Ramkrishna Forgings, we are actively gearing up for the future of engineering industry. We have our sights set firmly on helping to bring the future of mobility to global consumers faster. A diversified presence across geographies and vehicle segment
Slide 5: Key Highlights
Key Highlights Manufacturer and Global presence with One of the largest supplier of a variety footprints in North player in metal of auto and non-auto America, Europe, processing in India components South America , South East Asia Promoter possessing Continued focus on Longstanding multi-decade dive
Slide 6: 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 7: … with over four decades of unique capabilities
… with over four decades of unique capabilities Company Commenced ring In-house R&D team • Commissioned 7,000T Acquired ACIL under Incorporation rolling press line with received accreditation Press Line IBC vide NCLT order machining facilities from DSIR. • Commissioned Warm Forging Line • Commission
Slide 8: … 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 Manesar, Gurugram hubs and key suppliers of raw material facility • Less chance of supply int
Slide 9: … technology powered by in-house R&D and testing capabilities
… technology powered by in-house R&D and testing capabilities In-house R&D and testing capabilities Digital tools Impact Auto CAD Unigraphics Commercial computer aided CAD/CAE/CAM design and drafting software application software product Product Enhanced Innovation Product Quality 56 Member R&D Team
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 Tractors & Tillers Crown Wheel & Pinion Rear Axle Shafts Transmission Shafts & Gears Bucket Backhoe Bucket Shovel Track Link Earth Moving Track Roller Bucket Tooth Pivot Pin Prop Shaft Bearing Centre 10 Ramkrishna Forgings Limited Inve
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 Headquarters & Manufacturing facilities Sales & support office: Warehousing facility: Headquarters – Kolkata • Detroit, USA • Shelbyville, USA 6 manufacturing facilities • Sao Paulo, Brazil •
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 Global Markets Further enhance geographic 1 presence to capture global 01 market opportunities Expanding Capabilities Expand our manufacturing 4 capacities 04 Diversification Strategy Continue the diversification 2 strategy with increa
Slide 16: Well positioned to capture future growth
Well positioned to capture future growth New 8000T Press Line Cold forgings capability ❖ The company is in the process of adding capacity of 32,500T consisting of warm forging press, upset forgings and 6000T press line. Entire 100% capacity has been 8000T booked by an OEM, the contract of ❖ The comp
Slide 17: About Multitech Auto
About Multitech Auto ❖ Multitech Auto Pvt. Ltd. (MAPL) - MAPL today is regarded as the pioneers of high- Assembly Products quality SG and CI Castings and the first to introduce ADI castings in Eastern India. Now the company is one of the leading ADI Castings player in India. ❖ The manufacturing capa
Slide 18: About JMT Auto
About JMT Auto ENGINE COMPONENTS ❖ JMT Auto has a significant expertise in the auto sector with capabilities in heat treatment and gear and in manufacturing a variety of components for the Oil and Gas industry. Equipped with advanced CNC Technology, the company's core strength lies in producing high
Slide 19: Accelerated growth through inorganic route - ACIL
Accelerated growth through inorganic route - ACIL About ACIL Details & Rationale of the acquisition ❖ ACIL Limited is engaged in manufacturing of high precision ❖ ACIL is having a machining plant. All forgings are proposed to be engineering automotive components. It majorly manufactures supplied fro
Slide 20: 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 21: Financial Prudence
Financial Prudence
Slide 22: Diversified revenues across segments & geographies
Diversified revenues across segments & geographies 9MFY24 By Industry 9MFY24 FY23 9MFY23 By Geography By Segment 25% 22% Automobiles 77.9% 78.6% 79.3% Railways 3.3% 2.9% 2.8% 59% 16% Mining, Earth 78% Moving, Farm & 7.1% 8.4% 8.0% Gen. Engg As i a Europe North Ameri ca Auto Non-Auto Oil & Gas 1.2% 1
Slide 23: … coupled with increasing volumes
… coupled with increasing volumes Volume (tons) Realisation (Rs. Lac/ (ton) Volume (tons) Realisation (Rs. Lac/ (ton) +25% +23% 41,586 118,488 38,756 33,390 96,066 1.90 1.85 1.84 1.94 1.86 23,831 28,263 76,277 20,842 62,099 2.43 2.57 2.55 2.46 2.52 12,548 14,925 13,323 33,967 42,211 Q3FY23 Q2FY24 Q3
Slide 24: …. leading to higher utilizations
…. leading to higher utilizations Q3FY24 Q2FY24 Q3FY23 Particulars Installed Capacity Utilization Utilization Utilization Production (MT) Production (MT) Production (MT) (%)* (%)* (%)* Ring Rolling 24,000 8,865 148% 7,632 127% 7,390 123% Forgings 56,100# 12,838 92% 12,299 91% 12,810 111% Press 130,8
Slide 25: Strong key ratios
Strong key ratios ROCE (%) ROE (%) 19.3% 19.1% 20.8% 19.5% 16.3% 15.9% 6.0% 3.2% FY21** FY22 FY23 9MFY24 # FY21** FY22 FY23 9MFY24 # Fixed Asset Turnover (x) Net Debt to EBITDA (x) 2.1 1.9 4.7 1.7 1.1 2.5 1.6 0.8 FY21** FY22 FY23 9MFY24 # FY21** FY22 FY23 9MFY24 # ROCE- EBIT Less Other Income / Aver
Slide 26: Financial Performance
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Slide 27: Key performance indicator (Standalone)
Key performance indicator (Standalone) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 22.1% 22.9% 23.0% 7.7% 9.2% 9.1% +20% +25% +43% 86,462 90,288 19,794 20,750 7,955 8,226 75,231 16,628 5,757 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Revenue* EBITDA* & EBIT
Slide 28: Key performance indicator (Consolidated)
Key performance indicator (Consolidated) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 22.2% 21.0% 21.2% 7.9% 8.4% 8.2% +36% +30% +42% 98,149 1,05,779 22,462 8,220 8,686# 20,599 77,748 17,299 6,104 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 #The consolidated
Slide 29: Income Statement
Income Statement Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 9MFY24 Revenue from Operations 111,182 128,838 228,537 300,100 260,344 Cost of Goods Sold 50,673 64,240 103,077 144,374 131,211 Gross Profit 60,509 64,597 125,459 155,725 129,133 Gross Profit Margin 54.4% 50.1% 54.9% 51.9% 49.6% Employee
Slide 30: Balance Sheet
Balance Sheet Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 H1FY24 Net block (Tangible assets) 137,376 149,385 155,903 173,955 189,872 Intangible assets 922 1,088 3,171 3,041 4,048 Investments 1,930 1,938 1,938 1,939 23,392 Other non-current assets 4,274 3,174 7,111 9,543 13,112 Total non ‐ current a
Slide 31: Cash Flow Statement
Cash Flow Statement Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 H1FY24 Cash Flow from Operating Activities Profit before Tax 1,442 4,148 26,617 35,565 20,649 Adjustment for Non-Operating Items 17,667 18,453 23,592 26,758 16,391 Operating Profit before Working Capital Changes 19,109 22,601 50,210 62
Slide 32: Our Commitment
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Slide 33: Delivering shared value to planet, people and stakeholders through our ESG Vision
Delivering shared value to planet, people and stakeholders through our ESG Vision ENVIRONMENTAL VALUABLE REWARDING EMPOWERED ROBUST CONSCIOUSNESS PARTNERSHIPS WORKPLACE COMMUNITIES GOVERNANCE We will take sustained Develop relationships with our We value a diverse workforce Ensuring positive relatio
Slide 34: Our targets to achieve sustained outcomes
Our targets to achieve sustained outcomes ❖ Achieve Carbon Neutral across scope 1 & 2 by 2050 ❖ Increase energy use from renewable sources by 2028 ❖ Decrease in overall waste through the 3R approach ENVIRONMENT ❖ Increase recycling of water by 2025 ❖ Ensure majority of suppliers are within the same
Slide 35: Preserving and protecting the environment across our operations
Preserving and protecting the environment across our operations Key initiatives to support decarbonization in operations 6.1 MW 7.82 MW In Focus: Conducted Life Cycle Assessment (Cradle to Commissioned Solar Plant Total Projected Solar Plant Grave) for 3 products – Knuckles, Crown Wheel, and Front A
Slide 36: Aspiring to be employer and partner of choice
Aspiring to be employer and partner of choice Key initiatives to support decarbonization in operations 6200+ Training Manhours In Focus: Integrating capacity-building workshops across all locations • Conducted train-the-trainer session on ethical and responsible ways of “Code of Conduct” in December
Slide 37: Operating ethically and responsibly with transparency
Operating ethically and responsibly with transparency Key initiatives to support corporate governance practices Formulated (/refreshed) the following policies to define guiding principles for responsible business conduct: Employee Code of Conduct Aims to empower all employees and other stakeholders
Slide 38: Q3 & 9M FY24 Earnings Call
Q3 & 9M FY24 EARNINGS CALL SCHEDULED ON: Thursday, January 18, 2024 AT 16:30 HOURS INDIA TIME PRE-REGISTRATION LINK CLICK HERE TO JOIN THE CALL 37 Ramkrishna Forgings Limited Investor Presentation_ January 2024
Slide 39: 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 40: 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
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