Q2 2025 Ramkrishna Forgings Ltd Earnings Call Transcript
Key Points
- Ramkrishna Forgings Ltd (BOM:532527) reported a 17.2% year-on-year revenue growth, achieving its highest ever top line of INR1053 crores for the quarter.
- The company secured significant orders worth INR1,522 crores, primarily from North America, indicating strong international demand.
- The integration of recent acquisitions and capacity expansions are expected to enhance EBITDA and margin profiles in the future.
- The company is expanding into the electric vehicle (EV) market with a new aluminum forging capacity, which is fully backed by a firm order for 5 years.
- Ramkrishna Forgings Ltd (BOM:532527) is confident in achieving a 15% to 20% year-on-year growth, supported by new product developments and increased market share in various segments.
- The company experienced an increase in consolidated debt by INR282 crores in H1 FY '25, attributed to inventory buildup and other strategic initiatives.
- Raw material pricing decreased by 4%, impacting the top line and resulting in lower realization per tonne.
- There was a noted increase in other expenses due to higher export carriage costs, affecting overall profitability.
- The commercial vehicle sector saw a degrowth, although offset by growth in other segments.
- The company faces challenges in the CV market, both domestically and internationally, which could impact future growth if not mitigated.
Ladies and gentlemen, good day, and welcome to the Ramkrishna Forgings Q2 FY '25 and H1 FY '25 Conference Call hosted by Luwa Wealth Management. (Operator Instructions)
There will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions).
I now hand the conference over to Mr. Raghunandhan from Nama Wealth Management. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. On behalf of Nuvama Wealth Management, I would like to welcome you all to this earnings call of Ramkrishna Forgings. I would like to thank the management for giving us this opportunity from the management team.
We have with us today Mr. Naresh Jalan, Financing Director; Mr. Chaitanya Jalan, Executive Director; Mr. Lalit Khetan, old-time Director and CFO; Mr. Milesh Gandhi, Executive Director; and Mr. Rajesh Mundhra, VP, Finance and Company Secretary.
Before we begin, may I remind you of the safe harbor the management may be making some forward-looking statements that has to be understood
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