Ramkrishna Forgings Ltd · NSE:RKFORGE
Ramkrishna Forgings — Q1 FY2025 Earnings Presentation
42 slides from Ramkrishna Forgings's earnings presentation, Jul 24, 2024
Slide 1: Stock exchange announcement - Investors Presentation
"RAMERISHNA FORGINGS LIMITED Date: 24* July, 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: Investor Presentation | Q1FY25
Investor Presentation | Q1FY25 Innovation Engineered For Excellence 1
Slide 3: About Ramkrishna Forgings
About Ramkrishna Forgings 2
Slide 4: MD's Insights and Reflections
MD’s Insights and Reflections MR. NARESH JALAN At Ramkrishna Forgings, we upheld our commitment to both excellence and strategic growth. We received a significant order inflow, amounting to Rs. 1,679 crore to be executed over a period of four years. The order book also includes an undercarriage busi
Slide 5: Business Overview
Business Overview Financial Metrics Consolidated Standalone 2nd 2,000+ Largest Forging Company ₹ 1,00,502 ₹ 86,846 Products across Auto and in India1 Non-Auto Components Lakhs Lakhs Revenue from Operations Revenue from Operations 12.6% YoY 3.9% YoY ₹ 22,532* ₹ 20,072* 22 40+ years Lakhs / 22.4% Lakh
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 One of the largest player Continued focus on supplier of a variety of in metal processing in diversification with foray auto and non-auto India into EV components components Global presence with Promoter possessing Longstanding relationship footprints in North multi-d
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 Ramkrishna Forgings Limited Investor Presentation – July 2024 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 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 Ramkrishna Forgings Limited Investor Presentation – July 2024 12
Slide 14: Diversified Product Portfolio
Diversified Product Portfolio Revenue Break-up FY20 FY21 FY22 FY23 FY24 Q1FY25 Domestic Auto 43.4% 42.7% 39.2% 41.9% 39.7% 35.9% Railways 4.3% 3.1% 1.7% 2.7% 3.6% 4.3% Mining, Earth Moving & Farm Equipments 4.7% 4.8% 4.1% 4.5% 4.5% 4.8% Miscellaneous (Industrial Components, Steel, Cement & Power) 5.
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 Revenue By Geography 26% 31% FY24 Q1FY25 58% 55% 16% 14% Asia Europe North America Asia Europe North America With consistently growing exports (₹ in Lakhs) 148,290 +42% 124,513 Headquarters & Manufacturing facilities Sales & support services: Warehousing facility: 99,038 Headquar
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 Global Markets Inorganic Opportunities o Further enhance geographic o Explore inorganic opportunities offering presence to capture global market strategic benefits opportunities Diversification Strategy Expanding Capabilities o Expand
Slide 20: Well Positioned To Capture Future Growth
Well Positioned To Capture Future Growth Total capacity after addition of below lines will increase to 308,400T by end of FY25. Installed Capacity as on June 30 , 2024, was 229,150T Cold forgings capability New 8000T Press Line 8000T Proposed Date for Project cost Entire 100% capacity Cold Forging P
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 Ramkrishna Casting Solutions Limited
About Ramkrishna Casting Solutions Limited o Ramkrishna Casting Solutions Limited (formerly known as JMT Auto ENGINE COMPONENTS 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 and Gas industry. Equip
Slide 23: 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 tractors, HCV, LCV as well
Slide 24: Merger Rationale – ACIL with Ramkrishna Forgings
Merger Rationale – ACIL with Ramkrishna Forgings 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 Synergies & Cost Savings o Streamline Operations o Deeper Expertise
Slide 25: Update on Mexico Facility
Update on Mexico Facility Update on Mexico Facility o The Board of Directors of Ramkrishna Forgings Limited have approved the acquisition of Resortes Libertad, S.A. de C.V. in Mexico. o Acquisition will lead to Resortes Libertad, S.A. de C.V. becoming a 100% subsidiary of Ramkrishna Forgings Limited
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 (%) 22.4% 22.7% 23.1% 9.2% 9.9% 8.4% +4% +7% -5% 83,595 88,616 86,846 20,087 20,072 8,730 18,754 7,697 1,750 7,308 18,322 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY251 Q1FY24 Q4FY24 Q1FY25 Revenue* EBI
Slide 28: Key Performance Indicators (Consolidated)
Key Performance Indicators (Consolidated) (₹ in lakhs) Revenue* EBITDA & EBITDA Margin PAT & PAT Margin (%) 21.5% 21.3% 22.4% 8.8% 9.2% 8.0% +13% +17% +3% 102,326 100,502 21,747 22,532 9,385 89,234 19,197 1,750 7,853 8,090 20,782 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25# Q1FY24 Q4FY24 Q1FY25 Revenu
Slide 29: Volumes and Realisation
Volumes and Realisation Volume (tons) Realisation (Rs. Lac/ (ton) Volume (tons) Realisation (Rs. Lac/ (ton) +1% +18% 38,145 39,940 38,539 158,428 134,654 1.88 1.85 1.84 1.93 1.85 23,412 23,217 99,689 24,182 86,710 2.47 2.42 2.56 2.57 2.50 13,963 16,528 15,322 58,739 47,944 Q1Y24 Q4FY24 Q1FY25 Q1FY24
Slide 30: Higher Capacity Utilization
Higher Capacity Utilization Production (MT) Q1FY25 Q4FY24 Q1FY24 Particulars Installed Capacity Utilization Utilization Utilization FY24 FY23 Production (MT) Production (MT) Production (MT) (%)* (%)* (%)* Ring Rolling 24,000 32,533 29,497 8,489 141% 8,418 140% 7,617 127% Forgings 56,100 49,054 48,16
Slide 31: Strong Key Ratios
Strong Key Ratios ROCE (%) ROE (%) 19.3% 19.6% 20.8% 18.5% 19.5% 16.3% 16.3% 15.6% 6.0% 3.2% FY21 FY22 FY23 FY24 Q1FY25# FY21** FY22 FY23 FY24 Q1FY25# Fixed Asset Turnover (x) TOL/TNW 1.9 1.9 1.9 2.1 2.0 1.7 1.7 1.1 0.8 0.8 FY21** FY22 FY23 FY24 Q1FY25# FY21** FY22 FY23 FY24 Q1FY25# ROCE- EBIT Less
Slide 32: Financial Performance
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Slide 33: 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 34: 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 35: 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 36: Our Commitment
Our Commitment
Slide 37: 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 ENVIRONMENTAL VALUABLE REWARDING EMPOWERED ROBUST CONSCIOUSNESS PARTNERSHIPS WORKPLACE COMMUNITIES GOVERNANCE We are aligned with 9 United Nations Sustainability Development Goals Ramkrishna Fo
Slide 38: 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 6% reduction in freshwater use from the ground • 12% increase in ETP capacity- from 260 to 290 KLD Water Achieve Zero Liquid Discha
Slide 39: 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. 2030 Achieve • Based on LCAs,
Slide 40: Q1FY25 Earnings Call
Q1FY25 EARNINGS CALL SCHEDULED ON: Wednesday, July 24, 2024 AT 16:30 HOURS INDIA TIME HOSTED BY: PRE-REGISTRATION LINK CLICK HERE TO JOIN THE CALL Ramkrishna Forgings Limited Investor Presentation – July 2024 39
Slide 41: 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 42: Thank You
Thank You COMPANY : Ramkrishna Forgings Limited CIN : L74210WB1981PLC034281 Mr. Lalit Kumar Khetan (Whole Time Director & CFO) E: lalit.khetan@ramkrishnaforgings.com www.ramkrishnaforgings.com INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Siddhesh Dharma
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