Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q4 FY24 Earnings Presentation
47 slides from Ramkrishna Forgings's earnings presentation, May 2, 2024
Slide 1: Stock exchange filing letter
RAMKRISHNA FORGINGS LIMITED Date: 2nd May, 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 NSE
Slide 2: Earnings Presentation – Q4 & FY24
Earnings Presentation – Q4 & FY24 Investor Presentation - January 2024 Driving Innovation With Excellence The Journey Has Just Begun…
Slide 3: About Ramkrishna Forgings
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Slide 4: MD's Insights and Reflections
MD’s Insights and Reflections MR. NARESH JALAN At Ramkrishna Forgings, we continued with our relentless pursuit of excellence and strategic growth initiatives. In the quarter gone by, we successfully secured a notable INR 270 crores order for the Vande Bharat Train Set, a pivotal achievement in our
Slide 5: Consolidated Business Overview
Business Overview 2nd 2,000+ 22 40+ years 210,900T 1,58,428T Largest Forging Company Products across Auto and Countries served with Promoter’s experience in Installed Capacity1 Sales Volume in India Non-Auto Components strong footprints in North the Forging industry America and Europe Financial Metr
Slide 6: 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 7: 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 8: Our Journey
Our Journey Company Commenced ring In-house R&D team • Commissioned 7,000T • Acquired ACIL Incorporation rolling press line with received accreditation Press Line under IBC • machining facilities from DSIR. • Commissioned Warm • Commissioned Forging Line 630T Warm • Commissioned sheet Forging Line a
Slide 9: Our Presence Across India
Our 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 JMT Auto – 6 Plants 8 Ramkrishna Forgings Limited Investor Presentation - May 2024
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 software product application Product Enhanced Innovation Product Quality 57 Member VeraCAD KISSSoft R&D Team1 Graph
Slide 11: What Has Changed In 5 Years
What Has Changed In 5 Years Company has a clear focus towards de- 2019 2024 risking the 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
Slide 12: Product Offerings
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Slide 13: 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 12 Ramkrishna Forgings Limited Investor Presentation - May 2024
Slide 14: Revenue based diversification & Reducing Cyclicality
Revenue based diversification & Reducing Cyclicality Revenue Break-up FY19 FY20 FY21 FY22 FY23 FY24 Domestic Auto 56.0% 43.4% 42.7% 39.2% 41.9% 39.7% Railways 2.6% 4.3% 3.1% 1.7% 2.7% 3.6% Mining, Earth Moving & Farm Equipments 4.0% 4.7% 4.8% 4.1% 4.5% 4.5% Miscellaneous (Industrial Components, Stee
Slide 15: 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 16: 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 17: Our Global Presence
Our Global Presence (₹ in Lakhs) Revenue By Geography 26% 42% FY24 FY24 58% 58% 16% Exports Domestic Asia Europe North America With consistently growing exports (₹ in Lakhs) 1,48,290 +42% Headquarters & Manufacturing facilities Sales & support services: Warehousing facility: 1,24,513 Headquarters –
Slide 18: Way Forward
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Slide 19: 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 20: 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 a capacity of 14,250T consisting of upsetter forgings Entire 100% capacity has been o The company has planned to set up cold forging line and 8,000T hot 8000T booked by an
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: Financial Prudence
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Slide 27: Key Performance Indicators (Standalone)
Key Performance Indicators (Standalone) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 22.5% 23.0% 22.7% 8.0% 9.1% 9.9% +6% +7% +31% 90,288 88,616 20,750 20,087 8,226 8,730 83,540 18,816 6,682 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 #Revenue for the Quarter
Slide 28: Key Performance Indicators (Consolidated)
Key Performance Indicators (Consolidated) (₹ in lakhs) Revenue* EBITDA* & EBITDA Margin PAT & PAT Margin (%) 21.8% 21.2% 21.3% 7.7% 8.2% 9.2% +15% +12% +37% 1,05,779 1,02,326 22,462 21,747 8,686 9,385 89,164 19,400 6,845 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 #Revenue for the
Slide 29: Volumes and Realisation
Volumes and Realisation Volume (tons) Realisation (Rs. Lac/ (ton) Volume (tons) Realisation (Rs. Lac/ (ton) +4% +18% 41,586 39,940 158,428 38,588 134,654 1.89 1.84 1.85 1.93 1.85 28,263 23,412 99,689 24,611 86,710 2.42 2.55 2.42 2.57 2.50 13,977 13,323 16,528 58,739 47,944 Q4FY23 Q3FY24 Q4FY24 Q4FY2
Slide 30: Higher Capacity Utilization
Higher Capacity Utilization Production (MT) Q4FY24 Q3FY24 Q4FY23 Particulars Installed Capacity Utilization Utilization Utilization FY24 FY23 Production (MT) Production (MT) Production (MT) (%)* (%)* (%)* Ring Rolling 24,000 32,533 29,497 8,418 140% 8,865 148% 8,047 134% Forgings 56,100# 49,054 48,1
Slide 31: Strong Key Ratios
Strong Key Ratios ROCE (%) ROE (%) 19.3% 19.6% 20.8% 19.5% 16.3% 16.3% 6.0% 3.2% FY21** FY22 FY23 FY24 FY21** FY22 FY23 FY24 Fixed Asset Turnover (x) TOL/TNW 1.9 1.9 2.1 2.0 1.7 1.7 1.1 0.8 FY21** FY22 FY23 FY24 FY21** FY22 FY23 FY24 ROCE- EBIT Less Other Income / Average (Net Debt + Equity); FATR-
Slide 32: Gross Debt/Net Debt and Net Debt/EBITDA
Gross Debt/Net Debt and Net Debt/EBITDA 4.7 4.7 2.3 2.5 1.6 0.7 1,57,740 1,33,632 1,20,520 1,24,100 1,07,013 1,09,367 95,114 94,880 88,149 87,902 80,396 52,264 FY19 FY20 FY21 FY22 FY23 FY24 Gross Debt Net Debt Net Debt /EBITDA *Data is on standalone basis unless stated otherwise 31 Ramkrishna Forgin
Slide 33: Gross Debt & Net Debt
Gross Debt & Net Debt (₹ in Lakhs) Particulars Consolidated Standalone Ramkrishna Forgings Limited 80,396 80,396 JMT Auto Limited 11,613 - ACIL Limited 8,619 - Multitech Auto Private Limited 2,925 - Globe All India Services Limited 5,448 - Ramkrishna Forgings LLC 2,836 - Total Group Debt 111,837 80,
Slide 34: Capex, Investment and Debt
Capex, Investment and Debt (₹ in Crores) Particulars FY24 FY25E FY26E Capex Standalone 575 400 350 Capex Subsidiary 55 135 110 Acquisition Payout 231 - - Equity commitment for Titagarh JV 64 100 113 Total Capex + Investments 925 635 573 Consolidated Debt 818 754 219 33 Ramkrishna Forgings Limited *N
Slide 35: Financial Performance
Financial Performance
Slide 36: Income Statement
Income Statement Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 FY24 Revenue from Operations 111,182 128,838 228,537 300,100 348,961 Cost of Goods Sold 50,673 64,240 103,077 144,374 171,672 Gross Profit 60,509 64,597 125,459 155,725 177,289 Gross Profit Margin 54.4% 50.1% 54.9% 51.9% 50.8% Employee Co
Slide 37: Balance Sheet
Balance Sheet Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 FY24 Net block (Tangible assets) 137,376 149,385 155,903 173,955 199,072 Intangible assets 922 1,088 3,171 3,041 10,289 Investments 1,930 1,938 1,938 1,939 32,426 Other non-current assets 4,274 3,174 7,111 9,543 26,060 Total non ‐ current as
Slide 38: Cash Flow Statement
Cash Flow Statement Particulars (₹ in lakhs) FY20 FY21 FY22 FY23 FY24 Cash Flow from Operating Activities Profit before Tax 1,442 4,148 26,617 35,565 43,653 Adjustment for Non-Operating Items 17,667 18,453 23,592 26,758 32,884 Operating Profit before Working Capital Changes 19,109 22,601 50,210 62,3
Slide 39: Our Commitment
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Slide 40: Delivering shared value to the planet & people
Delivering shared value to the planet & people Vision ENVIRONMENTAL VALUABLE REWARDING EMPOWERED ROBUST CONSCIOUSNESS PARTNERSHIPS WORKPLACE COMMUNITIES GOVERNANCE 39 Ramkrishna Forgings Limited Investor Presentation - May 2024
Slide 41: Preserving and protecting the environment across our operations
Preserving and protecting the environment across our operations Goals Target Financial Year FY 2024 Outcomes • Scope 1 & 2 developed Achieve Net Zero (Scope 1 and 2) 2040 Roadmap • Scope 3 roadmap initiated (revised target) Developed • Top 3 products LCA conducted 100% renewable energy 747% increase
Slide 42: Aspiring to be an employer and partner of choice
Aspiring to be an employer and partner of choice Goals Target Financial Year FY 2024 Outcomes 100% ESG sensitization across 2025 ~94% Employees are trained on ESG trends and practices permanent employees (revised target) 100% employees trained on Human Rights 2025 ~93% Employees are trained on human
Slide 43: Operating ethically and responsibly, with transparency
Operating ethically and responsibly, with transparency Goals Target Financial Year FY 2024 Outcomes 100% permanent employees trained Employees have been trained on on CoC (revised target) 2025 91% Company Code of Conduct 100% board attendance 2024 96% Average Board Attendance RKFL strides towards go
Slide 44: ESG Roadmap for FY 2025 and beyond
ESG Roadmap for FY 2025 and beyond Net Zero Plan Develop CBAM • Switch to Cleaner fuels by 2028 Declarations to meet EU • Procure 100% Green steel by 2040 TCFD Reporting export needs 01 02 03 04 05 Commit to Science-based Integrate Climate Risks into Targets on carbon RKFL’s Risk Management Framewor
Slide 45: Q4FY24 Earnings Call
Q4FY24 EARNINGS CALL SCHEDULED ON: Thursday, May 02, 2024 AT 16:30 HOURS INDIA TIME HOSTED BY: PRE-REGISTRATION LINK CLICK HERE TO JOIN THE CALL 44 Ramkrishna Forgings Limited Investor Presentation - May 2024
Slide 46: 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 47: 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