The shares of the forged components manufacturer for automobiles gained up to 4 percent after the company’s board had approved setting up PV/LV segment components manufacturing facilities in Mexico.
With a market capitalization of Rs 13,690.18 crore, the shares of Ramkrishna Forgings Ltd were trading at Rs 757.30 per share, increasing around 2.57 percent s compared to the previous closing of Rs 738.35 apiece.
According to the company filing, Ramkrishna Forgings Ltd has announced that it has received approval from its board of directors for setting up manufacturing facilities to manufacture PV/LV segment components in Mexico.
Furthermore, the board has approved an investment of up to Rs 90 crore to establish a manufacturing facility. This new facility will have an installed production capacity of 11,000 metric tonnes per annum. This investment is supported by a long-term minimum USD10 million per annum Take or Pay agreement with a North American customer.
According to the company’s financials, sales climbed by 36% from Rs. 777 crores in Q3FY23 to Rs. 1,058 crores in Q3FY24. During the same time frame, Net Profit grew by 43% from Rs 61 crores to Rs 87 crores.
As of Q3FY24, the firm expects to increase capacity by 65,000 T by adding a cold forging line, an 8,000T hot forging press line, and minor press lines. Increasing capacity and leveraging operations can accelerate profitability benefits.
The manufacturing capabilities include Precision Machined Austempered Ductile Iron (ADI) Castings, Precision Machined SG & CI Castings from 1KG to 45KG Weights 1,800 MT/Month, Bar Draw Facility with Capacity of 500 MT/ Month.
Ramkrishna Forgings Limited is an India-based forging company. The company has two business segments: forging components and others. The Forging Components section produces and sells forged automobile components, as well as sanitization and freight services including tours and travel.
Written by:- Abhishek Singh
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