The shares of this manufacturer of automobile components gained up to 1.08 percent after the company received a USD 13.16 million contract from a North American Axle Manufacturer for Rear Axle & Off-Highway Business.
With a market capitalization of Rs 13,918.86 crore, the shares of Ramkrishna Forgings Ltd were trading at Rs 769.95 per share, decreasing around 0.10 percent as compared to the previous closing price of Rs 770.75 apiece.
According to the corporate filing, Ramkrishna Forgings Ltd has secured a 13.16 million USD contract with a leading North American axle manufacturer for rear axle and off-highway business for the next four years.
Furthermore, through this strategic collaboration, the Company will offer rear axle components and services to the off-highway sector for the next four years. The company, known for its skill in forging and production, emerged as the right solution for OEMs looking to expand their capabilities and satisfy the market’s expanding expectations.
Moreover, with this partnership, the Company anticipates not only solidifying its presence in North America but also continuing its tradition of delivering high-quality automotive components that drive innovation and performance.
Having a look at the company’s financials, the company’s revenue increased 36 percent from Rs. 777 crores in Q3FY23 to Rs 1,058 crores in Q3FY24. Further, During the same period, Net Profit increased by 43 percent from Rs 61 crores to Rs 87 crores.
The firm intends to install a cold forging line, an 8,000T hot forging press line, and other minor press lines, increasing the company’s capacity by 65,000 T. Capacity ramp-up, along with operating leverage, will result in a faster improvement in profitability.
The company’s production capabilities include 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 capacity of 500 MT per month.
Ramkrishna Forgings Ltd primarily manufactures and sells forged components for autos, railway trains and coaches, and engineering equipment.
Written by:- Abhishek Singh
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