Industrial Products company Ramkrishna Forgings announced Q1FY25 results:
Financial Highlights:
- Revenue: Rs 868 crore, up by 4% YoY
- EBITDA: Rs 201 crore, up by 7% YoY
- PAT: Rs 73 crore, down by 5% YoY
Operational Highlights:
- The Board of Directors have approved the acquisition of Resortes Libertad, S.A. de C.V. in Mexico. The new entity in Mexico is proposed to be named as Ramkrishna Forgings Mexico S.A. DE C.V. and the registered office will be in Monterrey Mexico. The Company has taken a factory space on lease at Monterrey, Mexico and will start its machining & warehousing operations from Q3FY25 onwards.
- The Board of Directors have approved the merger of ACIL Ltd with the company. Both the entities bring unique strengths, and the merger will enhance market presence, operational efficiency, innovation and excellence
- Overall capacity utilization stood at 86% for Q1FY25 vs 91% in Q4FY24 and 92% in Q1FY24. The drop in utilization is due to addition of capacity in during the quarter.
- Domestic Markets (Standalone):
- In Q1FY25, sales volume was 23,217 T, as compared to 24,182 T in Q1FY24.
- Revenue for Q1FY25 stands at Rs 46,745 Lakh as compared to Rs 48,243 Lakh in Q1FY24.
- Exports Markets (Standalone)
- In Q1FY25, sales volume was 15,322 T as compared to 13,963 T in Q1FY24 representing a YoY increase of 9.7%.
- Revenue grew by 13.6% in Q1FY25 to Rs 39,267 Lakh as compared to Rs 34,564 Lakh in Q1FY24.
Commenting on the results Naresh Jalan, Managing Director, Ramkrishna Forgings said: “I am pleased to share our financial performance and strategic milestones for this quarter. Our revenues on a standalone basis stood at Rs 868 crore, reflecting our strong market presence and operational efficiency. Our adjusted EBITDA was Rs 201 crore, yielding an impressive EBITDA margin of 23.1%. Our Profit After Tax (PAT) for the quarter was Rs 73 crore.
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 business order from a metro car in the railway segment, contributing to our diversification into the non-auto space.
The Board of directors approved the merger of ACIL Limited with the company. The merger will provide the significant synergies & cost savings and opportunities to expand market drive further growth. In addition, the Board of Directors have also approved the acquisition of Resortes Libertad, S.A. DE C.V. in Mexico. This acquisition marks a significant step in our strategic expansion, and the new entity is proposed to be named as Ramkrishna Forgings Mexico S.A. DE C.V. We plan to commence our machining and warehousing operations from Q3 FY25 onwards.
These developments underscore our commitment to expanding our global footprint, diversifying our business portfolio, and delivering sustainable growth. We are confident that these strategic initiatives will position us for continued success and create long-term value for our stakeholders.