The shares of the carbon and alloy steel manufacturer gained up to 5 percent after the company secured a USD 220 million contract to supply light vehicles to tier 1 customers in the light vehicle segment across North America.
With a market capitalization of Rs 13,803.17 crore, the shares of Ramkrishna Forgings Ltd were trading at Rs 765.50 per share, increasing around 2.43 percent as compared to the previous closing price of Rs 747.35 apiece.
According to the company filing, Ramkrishna Forgings Ltd has secured a USD 220 million contract to supply light vehicles to tier 1 customers in the light vehicle segments across North America. This decade-long deal represents the company’s expansion into a new manufacturing vertical, providing Tier 1 clients in North America’s Light Vehicle industry.
Furthermore, With this partnership, the firm is positioned to further extend its portfolio in important regions and contribute substantially to the automotive industry’s supply chain, to deliver high-quality goods that meet and surpass the automotive industry’s tough criteria.
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 FY22-23, the Company’s output was 85,725 tons, up from 69,649 tons last year, representing a 23.08% growth. Throughout the year, the company had an average capacity utilization of around 73.21%.
As of Q3FY24, The company plans to expand its capacity by 65,000 T by installing a cold forging line, an 8,000T hot forging press line, and several minor press lines. Increasing capacity and leveraging operations can lead to quicker profitability gains.
The firm produces Precision Machined Austempered Ductile Iron (ADI) Castings, Precision Machined SG & CI Castings (1KG to 45KG weights – 1,800 MT/Month), and a Bar Draw Facility with a 500 MT capacity per month.
Ramkrishna Forgings Limited is an India-based forging enterprise. The company operates in two segments: forging components and others. The Forging Components division manufactures and distributes forged automotive components, as well as sanitization and freight services, such as tour and travel.
Written by:- Abhishek Singh
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