Q4 2025 Ramkrishna Forgings Ltd Earnings Call Transcript
Key Points
- Ramkrishna Forgings Ltd (BOM:532527) reported new order wins worth INR 4,600 crores during FY25, diversified across geographies and industries.
- The company successfully commissioned new cold, hot, and warm forging capacities, increasing total capacity to 268,400 metric tons.
- The merger of ACIL into the parent entity was approved, simplifying the business structure and expected to enhance operational efficiency.
- India Ratings upgraded the company's long-term bank loan rating to IND AA with a stable outlook, reflecting improved financial stability.
- The company received significant new orders from Indian Railways, enhancing its presence in the railway sector and demonstrating the potential of its fabrication business.
- Consolidated revenue for Q4 FY25 was INR 947 crores, a 3% decline year-on-year, indicating challenges in maintaining growth momentum.
- EBITDA for Q4 FY25 was significantly lower at INR 99 crores compared to INR 188 crores in the previous year, reflecting operational challenges.
- An inventory discrepancy amounting to INR 220 crores for FY25 was identified, impacting financial results and raising concerns about internal controls.
- The company faced increased working capital requirements, with a rise of INR 400 crores during the year, affecting cash flow management.
- The imposition of a 10% duty on goods in the US impacted revenue recognition, with INR 70 crores not recognized in Q4 FY25 due to this change.
Ladies and gentlemen, good morning, and welcome to the Ramkrishna Forging Q4 FY25 earnings conference call, hosted by Nuvama Wealth Management Limited. (Operator Instructions) Please note that this conference is being recorded. I would now like to hand the call over to Mr. Raghunandhan from Nuvama Wealth Management Limited for opening remarks. Thank you, and over to you.
Good morning, everyone. Thank you for joining the call. We are pleased to host Ramkrishna Forgings Q4 FY25 earnings call. From the management team, we have Mr. Naresh Jalan, Managing Director; Mr. Chaitanya Jalan, Whole-Time Director; Mr. Lalit Kumar Khetan, Whole-Time Director and Chief Financial Officer; Mr. Milesh Gandhi, Whole-Time Director; Mr. Rajesh Mundhra, Vice President Finance and Company Secretary. We thank the management for giving us the opportunity. Initially, we'll start the call with opening remarks from management, and then we'll open for a Q&A session. Over to you, sir.
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