Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Investor Presentation (March 2024)
57 slides from Ramkrishna Forgings's investor presentation, Mar 1, 2024
Slide 1: Ramkrishna Forgings Limited - Regulation 30 Investor Presentation Filing
RAMERISHNA FORGINGS LIMITED Date: 1 March, 2024 To To The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza” C-1, Block G, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai- 400 051 BSE SCRI
Slide 2: Corporate Presentation – 2024
Corporate Presentation – 2024
Slide 3: Disclaimer
Disclaimer 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 se
Slide 4: Speakers For The Day
Speakers For The Day MR. LALIT KHETAN MR. LALIT KHETAN MR. NARESH JALAN MR. LALIT KUMAR KHETAN MR. CHAITANYA JALAN MR. MILESH GANDHI MANAGING DIRECTOR WHOLE TIME DIRECTOR & CFO WHOLE TIME DIRECTOR EXECUTIVE DIRECTOR 3
Slide 5: Business Overview
Business Overview 2nd 2,000+ 22 40+ years 210,900T Largest Forging Company Products across Countries served with Promoter’s experience in Installed Capacity1 in India Auto and Non-Auto strong footprints in the Forging industry Components North America and Europe Financial Metrics 1,18,488T # ₹ 2,93,
Slide 6: Our Journey since IPO
Our Journey since IPO (₹ in lakhs) Pre QIP Post QIP CAGR Particulars FY04 FY08 FY13 FY18 FY23 H1FY24 9MFY24 (FY04-FY24) (Annualised) Forging Production (in MT) 6456 22,810 40,928 121,667 163,382 88,650 139,034 18.4% Revenue (Domestic + Exports) 3,138 20,072 40,390 145,333 300,100 170,057 260,344 26.
Slide 7: Vision, Mission & Core Values
Vision, Mission & Core Values Vision Mission To Create Value for all business partners, To be the most preferred supplier of forged, rolled, shareholders and customers in all areas of business machined, fabricated and cast products for all end use Ramkrishna Forgings Limited is associated while indu
Slide 8: Experienced Board To Guide
Experienced Board To Guide Board of Directors Mr. Mahabir Prasad Jalan Mr. Naresh Jalan Mr. Chaitanya Jalan Mr. Lalit Kumar Khetan Mr. Pawan Kumar Kedia Director Managing Director Whole-time Director Whole-time Director Whole-time Director Mr. Amitabha Guha Mr. Ram Tawakya Singh Mr. Partha Sarathi B
Slide 9: Presence Across India
Presence Across India KOLKATA, JAMSHEDPUR & SERAIKELA - DELHI NCR WEST BENGAL KHARSWAN JHARKHAND RKFL Corporate RKFL – 6 plants ACIL Ltd Headquarters RKFL - 1 plant Multitech Auto – 4 plants Tsuyo Manufacturing India Pvt Ltd JMT Auto – 6 Plants 8
Slide 10: 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 application software product Product Enhanced Innovation Product Quality 57 Member R&D Team1 VeraCAD KISSSoft Testi
Slide 11: What Has Changed In 5 Years
What Has Changed In 5 Years Company has a clear focus towards de- 2019 2023 risking the business by reducing dependency on single product or single client De-risking Business Strategies Total verticals 2 5 New products launched 35 51 Total geographies present in 15 22 Total customers 153 218 Increas
Slide 12: Customers & Geography
Customers & Geography Revenue By Top 5 Customers & Others Revenue By Geography 27.1% 25.9% 27.2% 26.0% 25.2% 24.8% 32.1% 32.0% 31.3% 29.9% 40.0% 13.9% 14.1% 15.5% 15.9% 13.6% 20.8% 8.4% 10.6% 14.6% 21.7% 3.6% 4.3% 7.2% 3.5% 3.7% 17.8% 3.4% 3.5% 6.3% 3.8% 3.2% 3.1% 6.4% 3.1% 5.9% 4.1% 4.0% 2.5% 3.0%
Slide 13: Product Offerings
Product Offerings VA Z
Slide 14: Diversified Product Portfolio…
Diversified Product Portfolio… FARM EQUIPMENTS OEM & TIER 1 COMMERCIAL VEHICLES & PASSENGER VEHICLES RAILWAYS ENERGY OIL & GAS, POWER OFF ROAD APPLICATIONS EARTH MOVING, MINING & CONSTRUCTION INDUSTRIES Automotive Non-automotive 13
Slide 15: Revenue based diversification & Reducing Cyclicality
Revenue based diversification & Reducing Cyclicality Revenue Break-up FY19 FY20 FY21 FY22 FY23 9M FY24 Domestic Auto 56.0% 43.4% 42.7% 39.2% 41.9% 41.5% Railways 2.6% 4.3% 3.1% 1.7% 2.7% 3.3% Mining, Earth Moving & Farm Equipments 4.0% 4.7% 4.8% 4.1% 4.5% 4.2% Miscellaneous (Inds. Comp, Steel, Cemen
Slide 16: … Across Automotive Categories
… Across 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
Slide 17: Other Categories
Other Categories Farm Equipments Rear Axle Crown Wheel Transmission 1,2,3 & 4 Cyl Forged Crankshafts Shafts & Pinion Shafts & Gears Off Road Applications Prop Shaft Bearing Bucket Backhoe Shovel Track Link Track Roller Bucket Tooth Pivot Pin Centre Bucket Railways Bogie Frame – Fully Assembled Bogie
Slide 18: Our Capabilities
Our Capabilities
Slide 19: Hot Forgings [1/2]
Hot Forgings [1/2] Hammer & Upsetter Ring Rolling State-of-the-art Ring Rolling line with Robotics which can roll Hammer Facilities: crown wheels upto 500 diameter and 100mm in height • 3 Air Hammers (Double Acting Type) - One of 3 Ton & Two of 6.5 Ring Rolling Facilities: Ton each • CNC Raw Materia
Slide 20: Hot Forgings [2/2]
Hot Forgings [2/2] Press & Press Lines 2 Nos 2000 T 2500 T 3000 T 3150 T 4500 T 6300 T 7000 T 12500 T 2–8 3–8 10 - 20 KGS 10 - 20 20 - 35 30 - 45 KGS KGS 45 – 65 KGS KGS 80 - 200 KGS KGS KGS REAR AXLE SHAFT • Vertical Forging Solution for Rear Axle Shafts for varied applications in Automotive and Fa
Slide 21: Warm Forgings
Warm Forgings • 5 Station, 2000T fully automated Warm Forging Press with walking beam concept - capacity of 8.5 Million pcs/ Annum • 2 Station, 630T fully automated screw press with capacity of 12 Million Pcs / Annum • Product Families - Differential Gears & Differential Pinions, Spiders, UJ Cross A
Slide 22: Gear Grinding
Gear Grinding Total Gear Grinding Capacity of 30,000 nos per month 01 02 03 04 05 Max Diameter – 380 Axial Travel - 600 Max Module Max Module Profile Gear Accuracy – DIN 6 mm Generation Process - 8 Grinding- 14 21
Slide 23: Machining Capabilities
Machining Capabilities o Wide array of Turning Centers, Gear Hobbers, Shavers, Spline Rolling, VTLs, VMCs, HMCs, & Gear Grinding Machines o High Precision components employing the best-class machinery o 1 Million Components Monthly o Caters to Multiple End Use Industries 22
Slide 24: Machining Capabilities
Machining Capabilities BEAMS & KNUCKLES First of its kind Twin Spindle Machines for Front Axle Beam Machining, with shortest cycle times Numerous mix of Turning Centres, SPMs, HMCs and 5-Axis Machines 23
Slide 25: Machining Capabilities (Group Level)
Machining Capabilities (Group Level) #377 #165 #88 #60 #5 Turning Centers VMCs HMCs Milling Gear Grinding #138 #17 #36 #43 #2 Hobbing Broaching Shaping Shaving 9-Axis #118 #4 #3 #78 #6 Grinding – Tooth, Twin Spindle Beam Single Spindle Beam Drilling 5-Axis Cylindrical, centerless, Machining Line Mac
Slide 26: Fabrication Capabilities
Fabrication Capabilities CNC 5 Axis Milling Laser Cutting Robotic Twin Torch Machine Machine Welding 25
Slide 27: Our Global Presence
Our Global Presence (₹ in Lakhs) Revenue By Geography 25% 41% 9M FY24 9M FY24 59% 59% 16% Exports Domestic Asia Europe North America With consistently growing exports (₹ in Lakhs) +55% 1,24,513 Sales & support services: 1,07,981 Headquarters & Manufacturing facilities Warehousing facility: 99,038 He
Slide 28: What's Next?
What's Next?
Slide 29: Multiple Vectors To Accentuate Growth And Increase Profitability
Multiple Vectors To Accentuate Growth And Increase Profitability Focus on EV • Focus on increasing revenue share of EV business Diversification Strategy Expanding Capabilities • Continue the diversification strategy • Expand our manufacturing with increasing focus on non- capacities automotive categ
Slide 30: Well Positioned To Capture Future Growth
Well Positioned To Capture Future Growth New 8000T Press Line Cold forgings capability o The company is in the process of adding capacity of 32,500T consisting of warm forging press, upsetter forgings and 6000T press line. Entire 100% capacity has been 8000T booked by an OEM, the contract of o The c
Slide 31: New Acquisitions & Joint Venture
New Acquisitions & Joint Venture
Slide 32: About Multitech Auto
About Multitech Auto o 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. o The manufacturing capa
Slide 33: About JMT Auto
About JMT Auto o 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 ENGINE COMPONENTS and Gas industry. Equipped with advanced CNC Technology, the company's core strength lies in producing high
Slide 34: Merger Rationale - MAPL & MMPL with JMT Auto
Merger Rationale - MAPL & MMPL with JMT Auto Economies of scale o Reduce costs o Increased efficiency Enhanced Product Portfolio Market Expansion and Growth Shared Resources and Infrastructure o Financial gains o Broadened Scope o Streamline Operations Synergies & Cost Savings o Deeper Expertise o O
Slide 35: Salient Features Of The Merger
Salient Features Of The Merger Transfer of Assets, Liabilities, and Consideration of Merger Stamp Duty Impact Tax Synergy Contracts o Upon the Scheme becoming effective: o JMT to issue 46 Equity shares of Rs. 1 in o Issuance of 5,79,13,540 equity shares of o JMT Auto Limited holds significant tax •
Slide 36: About ACIL
About ACIL About ACIL Limited Details & Rationale of the acquisition o ACIL Limited is engaged in machining of high precision engineering o This acquisition will help RKFL to foray into Tractors and PV segments automotive components. It majorly manufactures crankshafts for o It is a forward integrat
Slide 37: About Globe All India Services
About Globe All India Services About Globe All India Services o Globe All India Services Ltd (Globe India), established in 1981, is a travel and travel related service provider which was acquired by Ramkrishna Forgings Limited in April 2013 o At the time of acquisition, the Company was incurring a l
Slide 38: About Tsuyo
About Tsuyo Expanding The EV Portfolio RKFL - TSUYO o Ramkrishna Forgings Limited signed an agreement to acquire upto 51% voting rights of TSUYO Manufacturing Private Limited (“TSUYO”) o It is a leading Mid-Drive BLDC, IPM and AC Induction based motor topologies & a Make-In-India start-up company en
Slide 39: Joint Venture With Titagarh
Joint Venture With Titagarh Rail Wheel Project o Ramkrishna Forgings & Titagarh Rail Systems Consortium receives LOA for Manufacturing and Supplying of Forged Wheels for the Indian Railways o Ramkrishna Forgings holds 51% in the Joint Venture and is a lead partner in this railway contract o It will
Slide 40: Key Performance Indicator (Consolidated)
Key Performance Indicator (Consolidated) (₹ in lakhs) Revenue from Operations# EBITDA# & EBITDA Margin PAT & PAT Margin (%) 17.3% 22.3% 21.7% 21.2% 1.6% 8.5% 7.8% 8.5% +57% 3,19,290 2,93,162 +76% +246% 2,32,025 69,232 24,811 24,759 62,207 51,699 19,803 1,28,893 22,271 2,067 FY21 FY22 FY23 9MFY24 FY2
Slide 41: Strong Key Ratios
Strong Key Ratios ROCE (%) ROE (%) 20.0% 19.2% 20.7% 20.2% 15.8% 16.4% 5.5% 2.4% FY21** FY22 FY23 9MFY24 # FY21** FY22 FY23 9MFY24 # Fixed Asset Turnover (x) Net Debt to EBITDA (x) 4.9 2.2 2.0 1.7 2.6 1.1 1.7 1.0 FY21** FY22 FY23 9MFY24 # FY21** FY22 FY23 9MFY24 # Data is on consolidated basis unles
Slide 42: Gross Debt/Net Debt and Net Debt/EBITDA
Gross Debt/Net Debt and Net Debt/EBITDA (₹ in lakhs) 4.7 4.7 2.5 1.6 1.7 0.8 2.3 1,57,740 1,42,646 1,33,632 1,20,520 1,24,100 1,25,851 1,07,013 1,09,367 1,08,553 95,114 94,880 88,149 87,902 59,335 FY19 FY20 FY21 FY22 FY23 H1FY24 9MFY24 Gross Debt Net Debt Net Debt /EBITDA Data is on standalone basis
Slide 43: Improved Working Capital Cycle
Improved Working Capital Cycle Particulars FY19 FY20 FY21 FY22 FY23 H1FY24 Inventory Days 67 117 120 109 106 101 Receivable Days 94 99 159 140 88 84 Payable Days 52 68 122 92 93 93 Net Working Capital Days 109 148 157 158 101 91 Data is on standalone basis unless stated otherwise 42
Slide 44: Industry Outlook
Industry Outlook
Slide 45: Industry Outlook
Industry Outlook Indian Automotive Forging Industry CV Production Outlook Production Outlook (in Tons) India (Units in ‘000) CAGR: 5% CAGR: 4-6% 1.6 850-900 1.4 1.5 661 674 1.3 1.3 1.3 381 411 450-500 FY23 FY24E FY29P LCV M&HCV FY23E FY24P FY25P FY26P FY27P FY28P Tonnage (Mn Ton) North America (Unit
Slide 46: Company Outlook
Company Outlook
Slide 47: Revenue Outlook (Consolidated)
Revenue Outlook (Consolidated)* (₹ in Crores) 925-950 5,600-6,075 FY24 Particulars 9MFY24 FY25 FY26 Annualised Company 850-1,115 - Ramkrishna Forgings Limited 2,603 3,400-3,500 3,800-4,100 4,500-4,800 Subsidiaries Annualised 3,825-4,010 - Multitech Auto / JMT Auto 129 175-225 525-575 600-675 - ACIL
Slide 48: Recent Order Wins, Execution & Capacity Expansion Plan
Recent Order Wins, Execution & Capacity Expansion Plan Recent Order Wins & Execution Period* Summary on Capacity Expansion (₹ in Crores) (In Metric Tonnes) Planned Addition 3,071 Particulars Existing FY24 H1FY25 FY25 2,276 Capacity - Standalone - Forging 210,900 243,400 268,400 308,400 Capacity – Su
Slide 49: Capex, Investment and Debt
Capex, Investment and Debt (₹ in Crores) Particulars FY24 FY25 FY26 Capex Standalone 485 350 350 Capex Subsidiary 20 135 110 Acquisition Payout 278 - - Equity commitment for Titagarh JV 72 70 70 Total Capex + Investments 855 555 530 Consolidated Debt 890 748 169 48
Slide 50: ESG
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Slide 51: 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 We will take sustained efforts towards creating a healthy planet by reducing our carbon footprint, mitigating Consciousness climate change and optimizing our business operations Valuable Develop relations
Slide 52: Key ESG Targets For RKFL
Key ESG Targets For RKFL Environment Social Governance Emissions Supply Chain Management Board Diversity 50% 2033 100% 10% Renewable energy Achieve Supplier Audits Women representation mix by 2028 Carbon Neutrality by 2024 on Board by 2030 across Scope 1 & 2 Water Management Health & Safety Gender P
Slide 53: 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 127 KLD 115 KLD Commissioned Solar Plant Total Projected Solar Plant Current STP Capacity Under Progress STP Capacity 9MFY24 9MFY24 260 KLD 30 KLD 13350 KL 3890 KL
Slide 54: Aspiring to be employer and partner of choice
Aspiring to be employer and partner of choice Key initiatives to support decarbonization in operations 6200+ 69 Critical Suppliers Eye Check-Up Keep Your City Clean Training Manhours Identified by evaluating business Health camp organised for 60 litter bins installed in impact, spent, proximity & cu
Slide 55: 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 Whistle Blower Policy POSH Policy Business Continuity
Slide 56: Thank you
COMPANY : INVESTOR RELATIONS ADVISORS : Ramkrishna Forgings Limited Orient Capital (a division of Link Group) CIN : L74210WB1981PLC034281 Mr. Nikunj Jain Mr. Amar Yardi Mr. Lalit Kumar Khetan (Whole Time Director & CFO) +91 9769060608 +91 7045121239 E: lalit.khetan@ramkrishnaforgings.com nikunj.jain
Slide 57: Q & A Session
Q & A Session
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