Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — H1 FY2025 Earnings Presentation
48 slides from Ramkrishna Forgings's earnings presentation, Oct 24, 2024
Slide 1: Ramkrishna Forgings Limited exchange filing cover letter
RAMKRISHNA FORGINGS LIMITED Date: 24 October, 2024 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: Investor Presentation Q2 & H1 FY25
Innovation Engineered For Excellence Investor Presentation Q2 & H1 FY25
Slide 3: Contents
Contents 5 2 4 Financial Overview 1 Diversified Products & Offerings Corporate About Structure Ramkrishna Our Forgings Commitment Way Forward 6 3 Investor Presentation – October 2024 2
Slide 4: MD's Insights and Reflections
MD’s Insights and Reflections “We continue to undertake steps to solidify our growth prospects. In addition to sustained momentum in order wins, we are engaging more deeply with our existing and prospective customers to offer comprehensive solutions. The addition of capacity and capabilities will en
Slide 5: About Ramkrishna Forgings
About Ramkrishna Forgings il
Slide 6: Business Overview
Business Overview Financial Metrics Consolidated Standalone ₹ 1,05,363 ₹ 2,01,311 ₹ 95,232 ₹ 182,078 2nd 2,000+ Lakhs Lakhs Lakhs Lakhs Largest Forging Company Revenue 17.2% YoY 16.0% YoY 10.1% YoY 7.1% YoY Products across Auto and from in India1 Non-Auto Components Operations (Q2FY25) (H1FY25) (Q2F
Slide 7: Vision, Mission & Core Values
Vision, Mission & Core Values Vision Mission To Create Value for all business partners, shareholders To be the most preferred supplier of forged, rolled, and customers in all areas of business Ramkrishna machined, fabricated and cast products for all end use Forgings Limited is associated while demo
Slide 8: RKFL's Path to Net Zero by 2040
RKFL’s Path to Net Zero by 2040 - Taking focused action to decarbonize across our operations and value chain Decarbonization levers at RKFL to reduce our Scope 1 and 2 emissions : 2040 For Scope 3, we are working with suppliers to reduce emissions in the value chain. 2028 Based on LCAs, material eff
Slide 9: Key Highlights
Key Highlights Manufacturer and One of the largest player Continued focus on supplier of a variety of in metal processing in diversification with auto and non-auto India foray into EV components components Global presence with Promoter possessing Longstanding footprints in North multi-decade relatio
Slide 10: Our Journey
Our Journey Commissioned RA Shaft Press Line and a 5” Upsetter Acquired Multitech Auto Acquired Ramkrishna Casting Commissioned 2 Press Solutions Limited (formerly JMT Lines of 6,300T & Commissioned a Auto) under IBC Launched IPO 12,500T Hollow Spindle Line Raised ₹10,000mn via QIP 2004 2015 2020 20
Slide 11: In-house R&D And Testing Capabilities
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 software product application Product Innovation Enhanced Product Quality VeraCAD KISSSoft 57 Member Graphically int
Slide 12: What Has Changed In 5 Years
What Has Changed In 5 Years RKFL has a clear focus towards de-risking the 2019 2024 business by reducing dependency on single product or single client De-risking Business Strategies Total verticals 2 5 Product categories 35 69 Total geographies present in 15 22 Total customers 153 247 Increased mach
Slide 13: Ownership and Value Creation
Ownership and Value Creation Market Cap. (Rs. Cr) Public Shareholding, 27.5% Promoters, 43.1% 18,235 30 Sep ‘24 1,005 FIIs, 24.3% Mutual Funds/AIF/QIB, Sep ‘19 5.1% Key Shareholders As on 30th September 2024 Dividend Distributed (Rs. Lakhs) Smallcap World Fund, Inc 6.73% 3,453 3,198 Lata Bhanshali 2
Slide 14: Diversified Products & Offerings
Diversified Products & Offerings 13
Slide 15: Diversified Product Portfolio
Diversified Product Portfolio FARM EQUIPMENT RAILWAYS OEM & TIER 1 COMMERCIAL VEHICLES & PASSENGER VEHICLES OFF ROAD APPLICATIONS EARTH MOVING, MINING & CONSTRUCTION INDUSTRIES EV PASSENGER VEHICLES & COMMERCIAL VEHICLES ENERGY OIL & GAS, POWER Automotive EV Non-automotive Investor Presentation – Oc
Slide 16: Automotive Categories
Automotive Categories 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 Gears Rea
Slide 17: Other Categories
Other Categories Farm Equipment Rear Axle Crown Wheel Transmission 1,2,3 & 4 Cyl Forged Crankshafts Shafts & Pinion Shafts & Gears Off Road Applications Bearing Backhoe Track Roller Prop Shaft Bucket Shovel Track Link Bucket Tooth Pivot Pin Centre Bucket Railways Bogie Frame - LHB Bogie Bolster - LH
Slide 18: Our Global Presence
Our Global Presence Headquarters & Manufacturing facilities Headquarters – Kolkata 18 manufacturing facilities • Jamshedpur – 16 plants (RKFL – 7 plants, MAPL – 3 plants & RKCL – 6 plants) • Howrah –West Bengal – 1 plant • Manesar – ACIL – 1 plant Sales & support services: • Detroit, USA • Milan, It
Slide 19: Our Global Presence: Revenue by Geography
Our Global Presence Revenue By Geography 26% 32% FY24 H1FY25 58% 55% 16% 13% Asia Europe North America Asia Europe North America With consistently growing exports (Rs. Lakhs) +42% 1,48,290 1,24,513 99,038 79,885 Q2 51,792 40,618 39,267 Q1 FY21 FY22 FY23 FY24 H1 FY25 Standalone Numbers Investor Prese
Slide 20: Diversified Product Portfolio Revenue Break-up
Diversified Product Portfolio Revenue Break-up FY20 FY21 FY22 FY23 FY24 H1FY25 Domestic Auto 43.4% 42.7% 39.2% 41.9% 39.7% 37.8% Railways 4.3% 3.1% 1.7% 2.7% 3.6% 4.4% Mining, Earth Moving & Farm Equipment 4.7% 4.8% 4.1% 4.5% 4.5% 4.6% Miscellaneous (Industrial Components, Steel, Cement & Power) 5.9
Slide 21: Way Forward
Way Forward 20
Slide 22: Multiple Vectors To Accentuate Growth And Increase Profitability
Multiple Vectors To Accentuate Growth And Increase Profitability Global Markets Inorganic Opportunities Further geographic presence Explore inorganic opportunities toenhance capture global offering strategic benefits market opportunities Diversification Strategy Expanding Capabilities Continue the d
Slide 23: Well Positioned To Capture Future Growth
Well Positioned To Capture Future Growth Total capacity after addition of below lines will increase to 311,400T by end of Q1FY26. Installed Capacity as on September 30, 2024, was 229,150T. Proposed Particulars Capacity Project Cost Commissioning Hot Forging 40,000 T Q4-25 Rs. 80 Cr Cold Forging 25,0
Slide 24: Capacity Expansion
Capacity Expansion Summary on Capacity Expansion (In Metric Tonnes) Particulars Existing FY25E Capacity -Standalone Forging 229,150 308,400 Capacity – Subsidiary Casting 33,600 62,400 Forging (RKCSL) 4,000 22,000 Total 266,750 392,800 Investor Presentation – October 2024 23
Slide 25: Corporate Structure
Corporate Structure 24
Slide 26: Corporate Structure
Corporate Structure RKFL Domestic International ACIL Limited Ramkrishna MAL Metaliks Ramkrishna (Being merged Casting Pvt. Ltd. Ramkrishna Forgings Multitech Auto with Solutions Ltd. (100% Forgings LLC, Mexico S.A. de Private Limited Ramkrishna (Formerly JMT stepdown USA C.V Forgings) Auto ) subsidi
Slide 27: About Ramkrishna Casting Solutions Limited
About Ramkrishna Casting Solutions Limited Ramkrishna Casting Solutions Limited (formerly known as JMT Auto) has Engine Components 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. Equipp
Slide 28: About Multitech Auto
About Multitech Auto Multitech Auto Pvt. Ltd. (MAPL) - MAPL today is regarded as the pioneers Assembly Products of high-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 capabilit
Slide 29: About ACIL
About ACIL ACIL Limited is engaged in machining of high precision engineering Crankshaft automotive components. It majorly manufactures crankshafts for tractors, HCV, LCV as well as two wheelers. Besides, the company also manufactures connecting rods, steering knuckles and hubs. With this acquisitio
Slide 30: Update on Rail Wheel Project
Update on Rail Wheel Project o Ramkrishna Forgings & Titagarh Rail Systems Consortium received an LOA for Manufacturing and Supplying of Forged Wheels for the Indian Railways o Ramkrishna Forgings holds a 51% stake in the Joint Venture and is the lead partner in this railway contract o The company w
Slide 31: Update on Mexico Facility
Update on Mexico Facility Ramkrishna Forgings Limited has acquired a company in Mexico and the same is named as Ramkrishna Forgings Mexico S.A. de C.V. The Company has taken a factory space on lease at Monterrey, Mexico and will start its machining & warehousing operations from Q3FY25 onwards. The m
Slide 32: Financial Overview
Financial Overview 31
Slide 33: Key Performance Indicators (Standalone)
Key Performance Indicators (Standalone) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%)# 22.9% 21.1% 22.2% 9.2% 8.4% 19.2% +10.1% +7.0% +129.8% 86,462 86,846 95,232 18,280 19,794 21,177 Exceptional 18,322 9.3% 8,816 Item 7,955 7,308 9.9% 9,464 PAT Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q
Slide 34: Key Performance Indicators (Consolidated)
Key Performance Indicators (Consolidated) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%)# 22.3% 21.3% 22.1% 9.1% 8.4% 18.0% +17.2% +16.2% +130.9% 18,977 1,05,363 23,275 95,948 20,032 20,403 Exceptional 89,876 7.7% 8,150 Item 8,220 8,090 10.3% 10,827 PAT Q2 FY24 Q1 FY25 Q2 FY25 Q2
Slide 35: Volumes and Realisation
Volumes and Realisation Volume (tons) Realisation (Rs. Lac/ (ton) Volume (tons) Realisation (Rs. Lac/ (ton) +11.9% +7.5% 38,756 38,539 43,387 76,201 81,926 16,062 14,925 31,384 15,322 28,188 2.57 2.56 2.52 2.58 2.54 23,831 27,325 48,013 50,542 23,217 1.85 1.84 1.79 1.87 1.81 Q2 FY24 Q1 FY25 Q2 FY25
Slide 36: Capacity Utilization
Capacity Utilization Production (MT) Q2FY25 Q1FY25 Q2FY24 Particulars Installed Capacity Utilization Utilization Utilization FY24 FY23 Production (MT) Production (MT) Production (MT) (%)* (%)* (%)* Ring Rolling 24,000 32,533 29,497 8,532 142% 8,489 141% 7,632 127% Forgings 56,100 49,054 48,160 12,42
Slide 37: Strong Key Ratios - Consolidated
Strong Key Ratios - Consolidated ROCE (%) Return on Total Asset (%) 8.7% 20.0% 19.5% 7.6% 17.4% 6.9% 15.8% 6.4% 5.5% 0.8% FY21 FY22 FY23 FY24 H1 FY25# FY21** FY22 FY23 FY24 H1 FY25# Fixed Asset Turnover (x) TOL/TNW 2.1 2.2 2.0 2.0 1.9 1.7 1.8 1.1 1.0 1.0 FY21** FY22 FY23 FY24 H1 FY25# FY21** FY22 FY
Slide 38: Income Statement
Income Statement Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 FY24 H1FY25 Revenue from Operations 111,182 128,838 228,537 300,100 348,961 182,078 Cost of Goods Sold 50,673 64,240 103,077 144,374 171,672 79,945 Gross Profit 60,509 64,597 125,459 155,725 177,289 102,133 Gross Profit Margin 54.4% 50.1%
Slide 39: Balance Sheet
Balance Sheet Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 FY24 H1FY25 Net block (Tangible assets) 137,376 149,385 155,903 173,955 199,072 219,992 Intangible assets 922 1,088 3,171 3,041 10,289 9,689 Investments 1,930 1,938 1,938 1,939 32,426 39,268 Other non-current assets 4,274 3,174 7,111 9,543 2
Slide 40: Cash Flow Statement
Cash Flow Statement Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 FY24 H1FY25 Cash Flow from Operating Activities Profit before Tax 1,442 4,148 26,617 35,565 43,653 33,365 Adjustment for Non-Operating Items 17,667 18,453 23,592 26,758 32,884 6,359 Operating Profit before Working Capital Changes 19,10
Slide 41: Our Commitment
Our Commitment 40
Slide 42: Key Sustainability Highlights
Key Sustainability Highlights Where Growth Meets Green: Progress Update from H1 FY2024 Permanent employees trained on 52% 97% ESG till H1 FY2025 Increase in water recycled across plants 1.12% 5X growth Reduction in grid electricity intensity per unit In renewable energy of production consumption (fr
Slide 43: Our ESG Vision - Delivering shared value to the planet and people
Our ESG Vision - Delivering shared value to the planet and people Our 5-pronged approach to Sustainability VALUABLE PARTNERSHIPS REWARDING WORKPLACE EMPOWERED COMMUNITIES ENVIRONMENTAL CONSCIOUSNESS ROBUST GOVERNANCE We are aligned with 9 United Nations Sustainability Development Goals Investor Pres
Slide 44: Our Goals and Initiatives
Our Goals and Initiatives Committed to preserving and protecting the environment and supporting the local community Our Goals and Target Year Progress Key Initiatives 14% increase Harnessing rainwater by harvesting capacity to in rainwater harvesting reduce freshwater dependency increasing Water Ach
Slide 45: Embraced 9R waste management framework
Embraced 9R waste management framework Taking focused action to minimize and manage waste efficiently Current Practices at RKFL R1 Reduce Minimising waste generation and heat losses at every stage of production by 1 Reduce applying lean manufacturing, material and energy efficiency. R8 Rethink Exten
Slide 46: Conference Call Details
Conference Call Details Q2 & H1 FY25 EARNINGS CALL Time Pre-registration HOSTED BY: 02:30 PM. IST on To enable participants to connect to the 24th October 2024 conference call without having to wait for an operator, please register at the below mentioned link: Investor Presentation – October 2024 45
Slide 47: 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 48: Thank You
Mr. Lalit Kumar Khetan (Whole Time Director & CFO) Ramkrishna Forgings Limited Email: lalit.khetan@ramkrishnaforgings.com Mayank Vaswani / Mit Shah CDR India Tel: +91 98209 40953 / +91 99201 68314 Email: mayank@cdr-india.com / mit@cdr-india.com Thank You 47
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