Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Investor Presentation (November 2023)
41 slides from Ramkrishna Forgings's investor presentation, Nov 22, 2023
Slide 1: Corporate Presentation – November 2023
Corporate Presentation – November 2023
Slide 2: About Ramkrishna Forgings
\. QSmMs , WAGNER FAW NING od Sot a z About Ramkrishna Forgings 'g i 7
Slide 3: MD’s insights and reflections
MD’s insights and reflections MR. NARESH JALAN Our company is committed to sustainable growth and profitability by carefully evaluating investment opportunities and integrating sustainability principles into our operations. Through automation and artificial intelligence, we are in the process of enh
Slide 4: Key Highlights
Key Highlights Manufacturer and 2nd largest forging Global presence with supplier of a variety player in India with footprints in North of auto and non-auto over 40 years of America and Europe components experience Promoter possessing Continued focus on Longstanding multi-decade forgings diversifica
Slide 5: One of the largest forging players in India: Vision, Mission & Core Values
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 6: … 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 Press Line Incorporation rolling press line with received accreditation • Commissioned Warm Forging Line machining facilities from DSIR. • Commissioned sheet metal fabrication line for manu
Slide 7: … 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 hubs and key suppliers of raw material • Less chance of supply interruptions • Lower logistic
Slide 8: … 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 Our Targets Auto CAD Unigraphics Commercial computer aided CAD/CAE/CAM design and drafting software application software product Product Enhanced Innovation Product Quality 56 Mem
Slide 9: … demonstrating superior performance
… demonstrating superior performance* 20 2,10,900T 87% 1,34,654 Countries Served Installed Capacity^ Capacity Utilisation Sales Volume 21% YoY ₹ 3,001 cr 100% 3% ₹ 668 cr Revenue Dividend# Total Turnover EBITDA 31% YoY from EV 27% YoY 22.3% 19.3% 17.8% 1.6x EBITDA Margin ROCE ROE Net Debt to EBITDA
Slide 10: … clear focus on de-risking business
… clear focus on de-risking business Company has a clear focus towards de-risking 2019 2023 the business by reducing dependency on single product or single client De-risking Business Strategies New verticals 2 4 New product categories 35 51 New Geographies 15 23 New customers 153 218 Increased machi
Slide 11: … 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 12: … 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 12 Ramkrishna Forgings Limited Corp
Slide 13: … 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 13 Ramk
Slide 14: … with growing global footprints
… with growing global footprints (₹ in crores) With consistently growing exports * +169.9% 1,185 990 518 439 Sales & support office: Headquarters & Manufacturing • Detroit, USA Warehousing facility: facilities • Sao Paulo, Brazil • Shelbyville, USA Headquarters – Kolkata • Istanbul, Turkey • Hagerst
Slide 15: Financial Prudence
: QSMs , WAGNER PAV NinG
Slide 16: Diversified revenues across segments & geographies
Diversified revenues across segments & geographies H1FY24 By Industry H1FY24 FY23 H1FY23 By Geography By Segment 25% 22% Automobiles 78.4% 78.6% 81.6% Railways 3.4% 2.9% 2.5% 58% 17% Mining, Earth 78% Moving, Farm & 6.7% 8.4% 6.5% Gen. Engg As i a Europe North Ameri ca Auto Non-Auto Oil & Gas 1.4% 1
Slide 17: … coupled with increasing volumes
… coupled with increasing volumes Volume (tons) Realisation (Rs. Lac/ (ton) Volume (tons) Realisation (Rs. Lac/ (ton) +18% +22% 38,145 38,056 76,201 32,180 62,676 1.92 1.86 1.89 1.87 1.88 24,182 23,831 48,013 20,531 41,257 2.52 2.45 2.70 2.46 2.58 11,649 13,963 14,225 21,419 28,188 Q2FY23 Q1FY24 Q2F
Slide 18: …. leading to higher utilizations
…. leading to higher utilizations Q2FY24 Q1FY24 Q2FY23 Particulars Installed Capacity Utilisation Utilisation Utilisation Production Capacity (MT) Production Capacity (MT) Production Capacity (MT) (%)* (%)* (%)* Ring Rolling 24,000 7,632 127% 7,617 127% 7,042 117% Forgings 56,100# 12,299 91% 11,944
Slide 19: Strong key ratios
Strong key ratios ROCE (%) ROE (%) 19.3% 18.5% 18.9% 18.2% 17.8% 14.7% 5.8% 4.6% 3.1% 1.1% FY20* FY21** FY22 FY23 H1FY24 # FY20* FY21** FY22 FY23 H1FY24 # Fixed Asset Turnover (x) Net Debt to EBITDA (x) 1.7 1.7 1.5 4.7 4.7 2.5 0.8 0.9 1.7 1.6 FY20* FY21** FY22 FY23 H1FY24 # FY20* FY21** FY22 FY23 H1
Slide 20: Way Forward
If Way Forwa rd r " ap |
Slide 21: 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 22: Well positioned to capture future growth
Well positioned to capture future growth New 8000T Press Line Cold forgings capability ❖ The forging capacity of the company will be augmented by 56,300 Tons by addition of warm forging press, upset forgings, 6000T press line ❖ The company has commissioned 23,800T of capacity as on 18th July 2023 an
Slide 23: Strategic acquisition of Multitech Auto
Strategic acquisition of Multitech Auto About Multitech Auto Private Limited o Multitech Auto Pvt. Ltd. (MAPL), incorporated in 1994 in Jamshedpur as a Machine Shop to supply high quality Machined part, have over the years been able to set up a wholly owned foundry and a cold drawing Bright Bar Unit
Slide 24: Strategic acquisition of Multitech Auto
Strategic acquisition of Multitech Auto Details & Rationale of the acquisition o Ramkrishna Forgings (RKFL) to acquire Multitech Auto Private Limited and its wholly owned subsidiary Mal Metalliks Private Limited with a capacity to manufacture Machined SG & CI Castings and Bar Draw Facility o This ac
Slide 25: Enhancing product portfolio by acquiring JMT Auto
Enhancing product portfolio by acquiring JMT Auto JMT Auto ❖ Lenders to JMT Auto have approved a resolution plan by Ramkrishna Forgings Limited ❖ The acquisition will help the company grow in terms of diversification & market reach as JMT Auto has significant expertise in the auto sector with capabi
Slide 26: Accelerated growth through inorganic route
Accelerated growth through inorganic route FORAYING INTO NEWER SEGMENTS EXPANDING THE EV PORTFOLIO ACIL RKFL - TSUYO ❖ Lenders to ACIL Ltd have approved a resolution plan by Ramkrishna Forgings ❖ Ramkrishna Forgings to acquire upto 51% voting rights in TSUYO Manufacturing” Limited ❖ Ramkrishna Forgi
Slide 27: 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 28: EV programs running globally
EV programs running globally India / Asia Pacific 5 Customer ❖ 7 Programs North America Europe ➢ 6 Programs Europe 2 Customer India/ASIA Pacific ➢ 3 Programs North America 1 Customer ❖ 5 Programs ➢ 4 Programs ❖ Programs in Serial Productions ➢ Programs in Order book ➢ Swedish OEM awards business wor
Slide 29: Financial Performance
Financial Performance
Slide 30: Key performance indicator (Standalone)
Key performance indicator (Standalone) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 22.3% 22.4% 22.9% 8.4% 9.2% 9.2% +13% +16% +24% 83,595 86,462 18,754 19,794 7,697 7,955 76,255 17,006 6,394 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Revenue* EBITDA* & EBIT
Slide 31: Key performance indicator (Consolidated)
Key performance indicator (Consolidated) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 21.3% 21.5% 20.9% 8.2% 8.8% 8.4% +19% +17% +22% 98,149 19,197 20,599 7,853 8,220 82,444 89,234 17,538 6,723 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Revenue* EBITDA* & EB
Slide 32: Income Statement
Income Statement Particulate (₹ in lakhs) FY20 FY21 FY22 FY23 H1FY24 Revenue from Operations 1,11,182 1,28,838 2,28,537 3,00,100 170057 Cost of Goods Sold 50,673 64,240 1,03,077 1,44,374 85879 Gross Profit 60,509 64,597 1,25,459 1,55,725 84178 Gross Profit Margin 54.4% 50.1% 54.9% 51.9% 49.5% Employ
Slide 33: Balance Sheet
Balance Sheet Particulate (₹ in lakhs) FY20 FY21 FY22 FY23 H1FY24 Net block (Tangible assets) 137,376 149,385 155,903 173,955 189872 Intangible assets 922 1,088 3,171 3,041 4048 Investments 1,930 1,938 1,938 1,939 23392 Other non-current assets 4,274 3,174 7,111 9,543 13112 Total non ‐ current asset
Slide 34: Cash Flow Statement
Cash Flow Statement Particulate (₹ 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 35: Our Commitment
2 QSMs , WAGNER PAV NinG
Slide 36: Delivering shared value through our ESG Vision
Delivering shared value to planet, people and stakeholders through our ESG Vision ENVIRONMENTAL ROBUST CONSCIOUSNESS GOVERNANCE We will take sustained efforts towards Following an effective governance creating a healthy planet by reducing model and focus on business integrity our carbon footprint, m
Slide 37: Preserving and protecting the environment across our operations
Preserving and protecting the environment across our operations Our Targets Our Approach Our Achievements so far Ongoing • Establishing effluent treatment plant and sewage 260 KLD treatment plant across plant premises Effluent Treatment Plant Capacity 50% decrease in overall waste through the 3R app
Slide 38: Aspiring to be employer and partner of choice
Aspiring to be employer and partner of choice Our Targets Our Approach Our Achievements so far By 2023 • Facilitating “Swachh Bharat Abhiyan” through 60 litter bins the “Keep Your City Clean Project” Installed and maintained in Jamshedpur Launch of wellbeing program focused on employees’ mental and
Slide 39: Aspiring to be employer and partner of choice
Aspiring to be employer and partner of choice Our Targets Our Approach Our Achievements so far • Implement company-wide employee code of Employee CoC In Progress conduct being revised to ensure company-wide Train all permanent employees to live the • Integrating the culture of ethics across our comp
Slide 40: 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 41: 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
Ramkrishna Forgings — Investor Presentation (November 2023) on 6ix