Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q3 FY17 Earnings Presentation
19 slides from Ramkrishna Forgings's earnings presentation, February 2017
Slide 1: Earning Q3 FY17 February 2017
EARNING Q3 FY17 FEBRUARY 2017 Stock Code: BSE: 532527 I NSE: RKFORGE BLOOMBERG: RMKF:IN I Reuters: RKFO.NS © 2017 Ramkrishna Forgings Limited
Slide 2: Q3 FY17 was one of the most challenging quarters
Q3 FY17 was one of the most challenging quarters in recent years.
Slide 3: Difficult Period
DIFFICULT PERIOD *4E adjustment of Rs 4.12 crores Note: change on YoY basis
Slide 4: Difficult Period
DIFFICULT PERIOD DEMONET IZATION EFFECT INABILITY OF VEHICLE PURCHASES END OF CASH YEAR CRUNCH BUYERS DELAYING PURCHASES TO NEW YEAR FESTIVE HOLIDAYS IN USA
Slide 5: Demonetization in India - Effect
Demonetization in India - Effect Government of India announced the ban on usage of INR 500 and 86% of currency (INR 500 & INR INR 1000 notes w.e.f. 9th 1000 notes) rendered illiquid. November’16 Demonetization in India – Effect Severe working capital crunch in Disruption in businesses. businesses. R
Slide 6: End of Year - Effect
END OF YEAR - Effect • Q3 has always been a slump quarter for the 1 Company/Sector. • End user deferring their sales on account of 2 change in year. • USA and European counties observe long 3 Festival winter Holidays.
Slide 7: Q3 FY17 general consensus: would be a weak quarter
GENERAL CONSENSUS: Q3 FY17 would be a weak quarter
Slide 8: RKFL, we are determined to bring in operational efficiency
RKFL, we are determined to bring in utmost operational efficiency and creating Shareholder Value _ il RAMKRISHNA FORGINGS LIMITED
Slide 9: Performance
PERFORMANCE This is what we have to show for our ‘Outperform all the time’ commitment in difficult time Net Sales (INR Crs) EBDITA (INR Crs) 212.63 39.61 + 6.68 % growth + 8.5% growth Operating Margin (%) PAT (Rs Crs) 2.85 18.63% (-) 51.04% growth + 33 bps growth Note: % change of YoY basis
Slide 10: Cost reductions in raw material, logistics and energy
• Reduced Raw Material costs by 2.17% 1 • Reduced Logistics cost by 4% 2 • Controlled the impact of rising fuel prices 3 and improved Energy costs Note: % change of YoY basis
Slide 11: Tonnage & Revenue Details
Tonnage & Revenue Details Particulars Q3FY17 Q2FY17 Q3FY16 % Change Total Tonnage 20360.00 15511.00 18,489.00 10.1% Domestic Tonnage 15760.00 11203.00 12045.00 30.8% Export Tonnage 4600.00 4308.00 6444.00 (28.6) Total Revenue (INR in Cr) 212.63 156.45 199.32 6.68 Domestic Revenue (Excl. Excise) 144.
Slide 12: Income Statement
Income Statement (Rs in Cr) Q3 Particulars 9M Current Last % Current Last Year % Year Year Change Year Change 212.63 199.33 6.68 Revenues (net of Excise Duty) 586.84 671.16 (12.56) 39.61 36.48 8.56 EBIDTA (Excl. Other Income) 108.18 133.77 (19.12) 18.63 18.30 EBDITA/Net TOI 18.44 19.93 20.15 12.09 6
Slide 13: Financial Position
Financial Position (Rs in Cr) Particulars 31-Dec-2016 Net Worth 477 Fixed Assets (incl. Capital WIP) 1,248 Long Term Debt 536 Short Term Debt 373 Total Debt 908 Sundry Creditors 304 Deferred Tax Liability 53 Ratios RONW (Average ) 1.39% RO Capital Employed 5.46% Debt/EBIDTA 6.30 Long Term Debt/Net W
Slide 14: Revenue by Geography
REVENUE BY GEOGRAPHY FY 15-16 SALES FY 16-17 SALES - 9 MONTH North America North 26% America, 41% India, 55% Europe India 4% Europe, 4% 70%
Slide 15: Challenging Outlook, Cautious Optimism
CHALLENGING OUTLOOK CAUTIOUS OPTIMISM
Slide 16: Encouraging - Economic Factors
ENCOURAGING – Economic Factors Increase in Government spending on Infrastructure. Scrapping of old vehicles (more that 15 yrs. old). New Bharat Stage IV norms for vehicles in India from April 01, 2017. Drop in interest rate will lead to increase in purchasing power. Improvement in the demand of Clas
Slide 17: Encouraging - Internal Factors
ENCOURAGING – Internal Factors Tied up with one of the leading OEM’s in Europe and USA for future buying of Forged & Machined products from new capacities. Received sample approvals for 97 new items till 31-Dec, out of which 65 items are for leading OEM’s in India and 32 items towards export Initiat
Slide 18: We wre hapyfey LO ICLVE YOU
—— We wre hapyfey LO ICLVE YOU
Slide 19: Disclaimer
DISCLAIMER This presentation has been prepared by Ramkrishna Forgings Limited (the “Company”) solely for your information and may not be distributed, reproduced, or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or publishe