Ramkrishna Forgings Limited has informed the Exchange about Investor Presentation
RAMERISHNA FORGINGS LIMITED Date: 28t April, 2023 To To The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited PJ Towers “Exchange Plaza” C-1, Block G Dalal Street Bandra- Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai- 400051 BSE SCRIP CODE: 532527 NSE SYMBOL: RKFORGE Dear Sir / Madam, Sub: Announcement under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Investors Presentation Please find enclosed herewith the copy of the Q4 & FY23 Earnings Presentation of the Company for the Quarter and Year ended 31st March, 2023. This is for your kind information and records. Thanking You. Yours truly, For Ramkrishna Forgings Limited Rajesh Mundhra Company Secretary & Compliance Officer ACS: 12991 Encl.: As above REGISTERED & CORPORATE OFFICE 23 CIRCUS AVENUE, KOLKATA 700017, WEST BENGAL, INDIA PHONE : (+91 33)4082 0900 / 7122 0900, FAX: (+91 33)4082 0998 / 7122 0998, EMAIL: info@ramkrishnaforgings.com, WEB: www.ramkrishnaforgings.com CIN NO. :L74210WB1981PLC034281 Earnings Presentation : Q4 & FY23
Q4 & FY23 Highlights
Q4 & FY23 Earnings Presentation
Strong growth backed by profitability
(Standalone)
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin
(₹ in Lakhs)
+22%
75,231
83,540
68,324
22.1%
15,102
22.1%
+25%
16,628
22.5%
18,816
12.7%
7.7%
8.0%
8,665
-23%
5,757
6,682
Q4FY22
Q3FY23
Q4FY23
Q4FY22
Q3FY23
Q4FY23
Q4FY22
Q3FY23
Q4FY23
Revenue*
+31%
3,00,100
2,28,537
EBITDA* & EBITDA Margin
PAT & PAT Margin
23.1%
22.3%
9.0%
7.9%
+27%
66,819
52,697
+14%
23,559
20,650
FY22
FY23
FY22
FY23
FY22
FY23
*Excluding Other Income ; Note: Rounded off to the nearest whole number Q4 & FY23 Earnings Presentation
3
Strong growth backed by profitability
(Consolidated)
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin
(₹ in Lakhs)
+24%
77,748
89,164
71,872
20.5%
14,768
22.2%
+31%
17,299
21.8%
19,400
11.7%
7.9%
7.7%
8,393
-18%
6,104
6,845
Q4FY22
Q3FY23
Q4FY23
Q4FY22
Q3FY23
Q4FY23
Q4FY22
Q3FY23
Q4FY23
Revenue*
+38%
3,19,290
2,32,025
EBITDA* & EBITDA Margin
PAT & PAT Margin
22.3%
21.7%
8.5%
7.8%
+34%
69,232
51,699
+25%
24,811
19,803
FY22
FY23
FY22
FY23
FY22
FY23
*Excluding Other Income ; Note: Rounded off to the nearest whole number Q4 & FY23 Earnings Presentation
4
… coupled with increasing volumes
Volume (tons)
Realisation (Rs. Lac/ (ton)
+20%
32,038
33,390
21,459
20,842
38,588
24,611
10,579
12,548
13,977
Total Revenue Breakup (Rs. Lakhs.)
Particulars
Q4FY23 Q4FY22
YoY
Q3FY23
QoQ
Domestic Markets
49,037
41,758
17.4% 41,911
17.0%
1.80
2.32
1.90
1.89
Export Markets
33,811
26,169
29.2% 32,691
3.4%
2.43
2.42
Export Incentive
Other Income
170
692
0
-
397
74.3%
81
629
109.9%
10.0%
Total
83,710
68,324
22.5% 75,312
11.2%
Q4FY22
Q3FY23
Q4FY23
Q4FY22
Q3FY23
Q4FY23
Volume (tons)
Realisation (Rs. Lac/ (ton)
+21%
134,654
86,710
47,944
FY23
111,742
68,664
43,078
FY22
1.75
2.25
FY22
1.93
2.45
FY23
Total Revenue Breakup (Rs. Lakhs.)
Particulars
FY23
FY22
Domestic Markets
1,74,498
1,24,086
Export Markets
Other Income
Export Incentive
Total
1,23,351
1,02,837
377
2,251
161
1614
3,00,477
2,28,698
YoY
40.6%
19.9%
134.2%
39.5%
31.4%
Q4 & FY23 Earnings Presentation
Domestic Markets*
Export Markets**
*Realisation excluding Fabrication sales ** Realisation excluding ocean freight
5
…. leading to higher utilizations
Particulars
Installed Capacity
Q4FY23
Q3FY23
Q2FY23
Q1FY23
Q4FY22
Q3FY22
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Ring Rolling
24,000
8,047
134%
7,390
123%
7,042
117%
7,018
117%
6,841
114%
6,918
115%
Forgings
46,000
12,655
110%
12,810
111%
11,732
102%
10,963
95%
12,104
105%
10,766
94%
Press
117,100
27,660
94%
19,880
68%
19,696
67%
18,489
63%
19,038
65%
16,473
56%
Total Capacity
187,100
48,362
103%
40,080
86%
38,470
82%
36,470
78%
37,983
81%
34,157
73%
*Utilzation (%) has been calculated on installed capacity on Annualized basis
Q4 & FY23 Earnings Presentation
6
Diversified revenues across segments & geographies
By Geography
By Segment
By Industry
FY23
25%
21%
15%
60%
FY23
9MFY23
FY22
Automobiles
78.6%
79.3%
81.1%
Asia
Europe
North America
Auto
Non-Auto
79%
Railways
2.9%
2.8%
1.7%
FY22
19%
30%
14%
56%
Mining, Earth Moving, Farm & Gen. Engg
8.4%
8.0%
7.6%
Oil & Gas
1.9%
1.6%
0.9%
81%
Others
8.2%
8.3%
8.7%
Asia
Europe
North America
Auto
Non-Auto
Q4 & FY23 Earnings Presentation
7
About Ramkrishna Forgings
Q4 & FY23 Earnings Presentation
One of the largest forging player in India
Key Highlights
Manufacturer and supplier of a variety of auto and non-auto components
Global presence with Sales & support office across 4 continents
2nd largest forging player in India with over 40 years of experience
Promoter possessing multi- decade forgings industry experience
Continued focus on diversification with foray into EV
Longstanding relationship with marquee customers
Vision, Mission & Core Values
Vision
Mission
Core Values
To be the most dependable and preferred supplier of forged and rolled components for the railways, automobile, mining, earthmoving, oil exploration, farm equipment, bearing and general engineering industry by providing world class products at competitive prices through a knowledge-based organization
Create value for all business associates, shareholders and customers in all the areas of business in which we are associated with and to become an active partner in employee well-being and philanthropic causes
Customer centric approach Continual improvements in systems Commitment to human development
Q4 & FY23 Earnings Presentation
9
… with over four decades of unique capabilities
Commenced ring rolling press line with machining facilities
2007
Commissioned 2 press lines of 3,150T and 4,500T. Commenced supplies to leading Tier I customer in North America
2014
In-house R&D team received accreditation from DSIR. Raised ₹ 2,000mn via QIP
2017
Commissioned 7,000T Press Line. Commissioned a Warm Forging Line and a Fabrication Facility
2021
Launched IPO
2004
1981
Company Incorporation
2006 Investment from UTI Venture Funds Management Company (Ascent Capital Limited)
2013
Received equity and debt funding from IFC. Equity funding from Wayzata for automated press
2020
Commissioned a Hollow Spindle Line
2015
Commissioned 2 of its press lines of 6,300T & 12,500T
Q4 & FY23 Earnings Presentation
10
… at strategic locations giving us competitive edge
1
Proximity to automobile manufacturing hubs & key suppliers
• RKFL’s facilities in eastern India are located in close proximity to automobile manufacturing
hubs and key suppliers of of raw material
• Less chance of supply interruptions • Lower logistics cost • Reduced working capital requirements
All facilities located within the same region
• Better integration resulting in efficient processes • • Overall cost savings, including administrative costs
Improved coordination
Proximity to key export hubs
• Reduces logistics cost
• 302km* to Kolkata port • 270km* to Haldia port
Availability of labor
• Eastern region is the industrial center of India • Low cost labor easily available • Lower dependency on migrant laborers
2
3
4
Jharkhand
West Bengal
Jamshedpur facility
Seraikela – Kharswan facility
Howrah facility
Kolkata Port
Haldia Port
Manufacturing facilities
Ports for Export
Q4 & FY23 Earnings Presentation
*approximate distance from Jamshedpur facility
11
… demonstrating superior performance*
23
1,87,100
87%
Countries Served
Installed Capacity
Capacity Utilisation
₹ 3,001 cr
Revenue 31% YoY
22.3%
EBITDA Margin
100%
Dividend#
19.3%
ROCE
1,34,654
Sales Volume 21% YoY
₹ 668 cr
EBITDA 27% YoY
3%
Total Turnover from EV
17.8%
1.6x
ROE
Net Debt to EBITDA
*As on 31st March 2023 on standalone financials; #Dividend as % of Face Value of Rs 2 each
Q4 & FY23 Earnings Presentation
12
… offering diversified products
1
Front Axle & Steering
I Beam
Knuckle
Steering Arm
Tie Rod Arm
2
Engine
3
Suspension & Chassis
4
Transmission
Sector Shaft
Front Hub
Crankshaft
Camshaft
Connecting Rod
Piston
Pitman Arm
BC Lever Assembly
Transmission Gears
Mounting Brackets
Yokes
UJ Cross
Transmission Shafts
Differential Gear & Differential Pinion
Q4 & FY23 Earnings Presentation
13
5
Rear Axle
Crown Wheel
Pinion
Differential Case
Differential Case Cover
Spindle
Rear Axle Shaft
Spider
… across diversified segments
Tractors & Tillers
Earth Moving
1,2,3 & 4 Cyl Forged Crankshafts
Bucket
Backhoe Bucket
Shovel
Track Link
Track Roller
Bucket Tooth
Crown Wheel & Pinion
Rear Axle Shafts
Transmission Shafts & Gears
Pivot Pin
Prop Shaft
Bearing Centre
Q4 & FY23 Earnings Presentation
14
… across diversified industries
Railways
Energy
Bogie Frame
Bogie Bolster
Wing Nut
Valve Bonnet
Draw Gear Assembly
Screw Coupling
Hanger Anti Roll Bar Assembly
T Bolt Socket Joint
Toothed Crusher Hammer
Q4 & FY23 Earnings Presentation
15
… with growing global footprints
(₹ in crores)
With consistently growing exports *
+169.9%
1,185
990
518
439
Headquarters & Manufacturing facilities Headquarters – Kalkata 6 manufacturing facilities • Jamshedpur – 3 • Serailkela – Kharswan – 2 • Howrah – West Bengal – 1
Sales & support office: • Detroit, USA • • • Germany • Italy
Sao Paulo, Brazil Istanbul, Turkey
Warehousing facility: • Shelbyville, USA • Hagerstown, USA • Monterrey, Mexico • Toluca, Mexico • Westerloo, Belgium • Indianapolis, USA • Pubela, Mexico
Q4 & FY23 Earnings Presentation
FY2020
FY2021
FY2022
FY2023
*Export revenue from operations, excluding foreign exchange fluctuations
16
Way Forward
Q4 & FY23 Earnings Presentation
Multiple vectors to accentuate growth and increase profit
Continued focus on diversification
Clearly Identified Growth Strategies
Continued investment in innovation and technology
Continued cost and process optimization
➢ Geographical – Further
diversification into international markets
➢ Sector – Increasing the gamut of products that are currently manufactured towards non- automotive customers
➢ Product – Diversification into high margin, niche products and EV
➢ Enhancing R&D capabilities to further provide competitive edge with respect to quality and cost
➢ Investment in modern technology and
equipments solidifying the competitive edge
➢ Accelerated efforts to optimize and improve process efficiency ➢ Focus on achieving economies of scale
Q4 & FY23 Earnings Presentation
18
Well positioned to capture future growth
• The forging capacity of the company will be augmented by 56,300 Tons
by addition of warm forging press, upset forgings, 6000T press line
• The capacities for the warm forgings and new technology totaling to 18,200T is expected to be commissioned by June 2023 and hot forging capacities of 38,100T shall be commissioned by September 2023
• The Company has sufficient capacity for the next phase of healthy &
robust growth.
• Capacity ramp-up along with operating leverage will result in faster
improvement in profitability
Q4 & FY23 Earnings Presentation
Installed Capacity
1,17,100
46,000
24,000
Ring Rolling
Forgings
Press
Capacity Utilization*
123%
105%
73%
85,725
48,160
29,497
Ring Rolling
Forgings
Press
*As on March 31, 2023
19
Warm Forgings capability
•
•
•
5 Station, 2000T fully automated Warm Forging Press from Kurimoto, Japan, with walking beam concept - with capacity of 9,900T
2 Station, 630T fully automated screw press from Enomoto, Japan with capacity of 4,500T
Product Families - Differential Gears & Differential Pinions, Spiders, UJ Cross
Passenger Car & SUV
Commercial Vehicles
Q4 & FY23 Earnings Presentation
20
Farm Equipment
Tractor
Off-Highway Equipment's
Acquiring Growth (1/2)
COMBINING FORCES FOR SUCCESS
EXPANDING THE EV PORTFOLIO
Rail Wheel Project
RKFL - TSUYO
o Ramkrishna Forgings & Titagarh Wagons Consortium receives LOA for Manufacturing and Supplying of Forged Wheels for the Indian Railways
o It will establish a manufacturing plant in India for the production of
200,000 forged wheels per annum
o Expected to start operation by end of FY26
Ramkrishna Forgings to acquire upto 51% voting rights in TSUYO Manufacturing”
o Ramkrishna Forgings approved an investment to acquire upto 51% voting rights of TSUYO Manufacturing Private Limited (“TSUYO”)
o It is a leading Mid-Drive BLDC, IPM and AC Induction based motor topologies & a Make-In-India start-up company engaged in powertrain solutions for electric vehicles
o It will aid in expanding its facilities for the manufacture of motors,
controllers, E-axles, and differentials
o The Company plans to invest around Rs. 100 Crores over the next 5 (five) years that will generate a turnover of around Rs. 500 Crores by the end of the fifth year
Q4 & FY23 Earnings Presentation
21
Acquiring Growth (2/2)
ACQUISITION & EXPANSION
ACIL
JMT Auto
o Lenders to ACIL Ltd have approved a resolution plan by
• Lenders to JMT Auto, a unit of Amtek Auto group, have approved a
Ramkrishna Forgings Limited
resolution plan by Ramkrishna Forgings Limited
o The acquisition will help the company to foray into Tractors and PV
segments
o It will be a forward integration which will enable the company to supply machined crankshafts, camshafts for tractors, PV, HCV, LCV as well as two wheelers. Besides, the company also manufactures various products which are used in Tractors and PV
o The acquisition will be financed through internal accruals and debt
• The acquisition will help the company grow in terms of diversification & market reach as JMT Auto has significant expertise in the auto sector with capabilities in heat treatment and gear and in manufacturing a variety of components for the Oil and Gas industry
• The acquisition plan had been duly approved by 84.61% Committee of
Creditors, subject to approval of NCLT Delhi
• The acquisition will be financed through internal accruals and debt
• They have 6 plants in Jamshedpur & 2 plants in Dharwad in western
India
Q4 & FY23 Earnings Presentation
22
EV programs running globally
North America
Europe
India/ASIA Pacific
India / Asia Pacific 4 Customer ✓ 7 Programs ❑ 4 Programs
Europe 2 Customer ❑ 3 Programs
North America 1 Customer ✓ 5 Programs ❑ 4 Programs
Q4 & FY23 Earnings Presentation
✓ Programs in Serial Productions ❑ Programs in Order book ❑ Swedish OEM awards business worth 15 million Euros for component to commence their development & supplies till 2030 for the awarded business.
to their EV truck for European Market
23
Disciplined capital allocation priorities
Particulars
Mar’23
Mar’22
01
The Company expect to achieve a healthy revenue growth in the future period
₹ in Lakhs
Gross Debt
1,24,100*
1,57,740*
Net Debt
1,09,367
1,33,632
*Includes customer Bill Discounting of Rs 154 crores for FY 21-22 and Rs 105 crores for FY22-23
Q4 & FY23 Earnings Presentation
The repayment of debt and payment of dividend will be commensurate with increased cash flow in line with the above growth.
02
24
… with improving key ratios
Gross Margin (%)
EBIDTA Margin (%)
56. 0%
55. 0%
54. 0%
53. 0%
52. 0%
51. 0%
50. 0%
49. 0%
48. 0%
0
12. 0%
11. 9%
11. 8%
11. 7%
11. 6%
11. 5%
11. 4%
0
54.9%
51.9%
0.5
1
1.5
2
2.5
3
3.5
FY22
FY23
PBT Margin (%)
11.9%
11.7%
0.5
1
1.5
2
2.5
3
3.5
FY22
FY23
23. 5%
23. 0%
22. 5%
22. 0%
21. 5%
0
9.5 %
9.0 %
8.5 %
8.0 %
7.5 %
7.0 %
6.5 %
0
Q4 & FY23 Earnings Presentation
23.1%
22.3%
0.5
1
1.5
2
2.5
3
3.5
FY22
9.0%
PAT Margin (%)
FY23
7.9%
0.5
1
1.5
2
2.5
3
3.5
FY22
FY23
25
… with improving key ratios
ROCE (%)
ROE (%)
19.3%
14.7%
18.9%
17.8%
5.8%
4.6%
3.1%
1.1%
FY20*
FY21**
FY22
FY23
FY20*
FY21**
FY22
FY23
Fixed Asset Turnover (x)
Net Debt to EBITDA (x)
1.7
1.5
4.7
4.7
0.8
0.9
2.5
1.6
FY20*
FY21**
FY22
FY23
FY20*
FY21**
FY22
FY23
ROCE- EBIT Less Other Income / (Net Debt + Equity); Net Debt to EBITDA- Net Debt/ EBITDA; FATR- Revenue / Fixed Assets (Net); *- Fy20 Performance impacted due to economic slowdown leading to sluggish demand for CVs; ** - FY21 Performance impacted due to COVID-19 induced lockdown
Q4 & FY23 Earnings Presentation
26
Financial Performance
Q4 & FY23 Earnings Presentation
Income Statement
Particulate (₹ in lakhs)
Revenue from Operations Cost of Material Consumed
Change in Inventories of Finished goods & Work in Progress Cost of services
Purchases of stock-in-trade Total Raw Material Gross Profit Gross Profit Margin (%) Employee Expenses Power and fuel Other Expenses EBITDA EBITDA Margin (%) Other Income
Depreciation
EBIT EBIT Margin (%) Finance Cost Profit before Tax Profit before Tax(%) Tax Profit After Tax PAT Margin (%) EPS (As per Profit after Tax)
Q4 & FY23 Earnings Presentation
FY21
1,28,838 64,083 157 - - 64,240 64,597 50.1% 9,037 9,354 23,214 22,993 17.9% 461
11,628
11,826 9.2% 7,678 4,148 3.2% 1,352 2,796 2.2% 1.74
FY22
2,28,537 1,21,423 -18,345 - - 1,03,077 1,25,459 54.9% 12,028 15,240 45,493 52,697 23.1% 161
16,906
35,952 15.7% 9,335 26,617 11.6% 5,967 20,650 9.0% 12.91
FY23
3,00,100 1,60,368 -15,994 - - 1,44,374 1,55,725 51.9% 14,431 18,792 55,683 66,819 22.3% 377
20,135
47,061 15.7% 11,496 35,565 11.9% 12,005 23,559 7.9% 14.73
28
Balance Sheet
Equity & Liabilities (₹ in lakhs)
FY21
FY22
FY23
Equity
Equity Share Capital Other Equity
Total Equity Non-Current Liabilities Financial Liabilities
Borrowings Lease Liabilities
Deferred Tax Liabilities Provisions Other Non Current Liabilities Total Non-Current Liabilities Current Liabilities Financial Liabilities
Borrowings Lease Liabilities Trade Payables
3,193 85,804 88,997
3,198 1,06,210 1,09,408
3,198 1,29,295 1,32,492
66,360 378 6,588 - 1,699 75,026
85,945 2,280 7,927 - 1,568 97,720
75,092 2,054 11,716 - 4,361 93,223
54,160 22 42,916
71,794 429 57,457
49,008 550 76,614
Other Current Financial Liabilities
4,886
3,594
5,888
Other current liabilities Provisions Current Tax Liabilities (net) Total Current Liabilities Total Equity & Liabilities
Q4 & FY23 Earnings Presentation
1,228 520 170 1,03,901 2,67,923
2,401 595 213 1,36,484 3,43,612
2,585 876 1,823 1,37,343 3,63,059
Assets (₹ in lakhs) Non ‐ Current Assets Property, plant and equipment Capital work‐in‐progress Right of use assets Goodwill on Amalgamation Intangible assets Financial Assets Investments Trade Receivables Loans Other Financial Assets Non-current Tax Assets Deferred Tax Assets Other non‐current assets Total Non ‐ Current Assets Current Assets Inventories Financial Assets Investments Trade receivables Cash and cash equivalents Bank balances other than (iii) above Loans Other current financial assets
Other current assets Current Tax Assets Total Current Assets TOTAL ASSETS
FY21
FY22
FY23
1,22,183 27,202 1,009 - 79
1,938 - 170 1,270 250 - 1,485 1,55,585
1,43,394 12,509 3,058 - 113
1,938 - 222 1,324 250 - 5,316 1,68,123
1,65,447 8,508 2,961 - 81
1,939 - 141 1,945 250 - 7,208 1,88,479
42,994
68,267
86,852
- 55,993 6,659 22 12 1,082 5,563 14 1,12,339 2,67,923
5,500 87,781 3,102 134 112 3,488 7,089 14 1,75,489 3,43,612
- 72,536 4,094 153 102 1,456 9,373 14 1,74,581 3,63,059
29
Cash Flow
Particulate (₹ in lakhs)
FY21
FY22
FY23
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add: Cash and cash equivalents as at 1st April
Cash and cash equivalents as at 31st March
Q4 & FY23 Earnings Presentation
4,148
18,453
22,601
-9,394
13,207
-557
12,650
-22,622
16,405
6,432
226
6,659
26,617
23,592
50,210
-41,746
8,464
-4,556
3,908
-35,348
27,884
-3,556
6,659
3,102
35,565
26,758
62,322
22,177
84,499
-6,724
77,776
-29,727
-47,057
992
3,102
4,094
30
Our Commitment
Q4 & FY23 Earnings Presentation
Q4 FY23 Highlights | Our ESG Vision
The vision is to commit to preserving and protecting the environment across its operations
Environmental Consciousness We will take sustained efforts towards creating a healthy planet by reducing our carbon footage, mitigating climate change and optimizing our business operations
Valuable Partnerships Develop relationships with our suppliers through assessments, collaborations, capacity building and develop a resilient supply chain
The vision is to be the employer and partner of choice for our employees and suppliers and help the local communities thrive
Rewarding Workplace We value a diverse workforce and work towards creating a healthy workplace where talent is developed, recognized and rewarded
Empowered Communities Ensuring positive relationships with our communities and contributing to their welfare by reducing inequality, promoting education, health and gender equality
The vision is to operate ethically and responsibly with transparency
Robust Governance Following an effective governance model and focus on business integrity to achieve business & sustainability goals.
Q4 & FY23 Earnings Presentation
32
Q4 FY23 Highlights | Environmental Initiatives
Clean Energy
Our Commitment: To be powered by 50% green energy by 2028
Keeping in line with India's commitment to sourcing half of its energy from non-fossil fuel sources by 2030, we at RKFL have adopted various energy conservation techniques and clean energy practices in our daily business activities
We have finalized Prozeal Infra Engineering Private Limited as our vendor to install a 7.82 MW solar power plant in our Jamshedpur Plant
Energy Optimisation
Our Commitment: To be Carbon Neutral by 2050
To improve our energy efficiency measure, we conducted a detailed energy audit across all our manufacturing units in January 2023. The study has helped us in identifying energy hotspots, leakage and improvement areas
Moreover, we are also conducting GHG emission study including Scope 3 emission to develop a Carbon Neutral Strategy for our business
Q4 & FY23 Earnings Presentation
33
Q4 FY23 Highlights | Environmental Initiatives
Product Stewardship
Considering the upcoming regulations such as Carbon Border Adjustment Mechanism (CBAM), we are conducting a Life Cycle Assessment for three of our products - Front Axel Beam, Crown Wheel and Knuckles
The study will help us in identifying and preparing a plan to reduce the overall environmental impact of these products along with their manufacturing cost
ROAD AHEAD – Q1 FY24
• Developing a carbon-neutral strategy in line with our net-zero commitment
•
Integrating robust and adaptive strategies to meet our clean energy commitment
• Working towards embedding sustainability across the life-cycle of our products
Q4 & FY23 Earnings Presentation
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Q4 FY23 Highlights | Social Initiatives
Talent Development
Our Commitment: Train 100% of our employees on ESG by 2023 and on Human Rights by 2025
In March 2023, we conducted capacity-building workshops at our headquarters in Kolkata and manufacturing units in Jamshedpur on ESG Awareness, Human Rights and Diversity, Equity & Inclusion.
These workshops will increase employee awareness across RKFL's commitments, initiatives and policies related to ESG. This will also help us to create a robust workforce to achieve our ESG commitments.
Supply Chain Management
Our Commitment: Conduct 100% supplier audits by 2024
SEBI recently announced that ESG disclosure & assurance will be introduced for the value chain of the top 250 listed entities but the numbers will increase eventually. Thus, it is necessary for us to manage our ESG-related risks by increasing traceability and transparency in our supplier activity.
We have decided to integrate environmental, social & governance (ESG) factors across our supply chain practices. This will help us to improve our resource efficiency by ensuring the responsible deployment of natural resources & proper disposal of harmful materials.
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Q4 FY23 Highlights | Social Initiatives
Community Empowerment
Our Commitment: Increase Employee Volunteering to 55% by 2030
Community Development is at the core of our heart. To understand the needs of the community and respond in an effective manner we have set up a dedicated team of professionals.
In order to support the Central Government's efforts for a clean and green environment, RKFL has partnered with Newage Clean Solutions to set up 60 bins across Jamshedpur.
ROAD AHEAD – Q1 FY24
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Capacity Building Workshop on Employee Code of Conduct & Supplier Quality Manual
Integrating ESG Risk Framework in our Supplier Selection Process through vendor categorisation & audits
Enhance our community engagement activities by fostering employee volunteering
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Q4 FY23 Highlights | Governance Initiatives
Policy Structure
Our Commitment: Build effective policies and strengthen our outreach
In an effort to build transparency and strong corporate culture, we have refreshed our existing policies and introduced new policies. These policies aim to establish the code of conduct, outline employee responsibilities as well as provide guidelines for interaction with stakeholders.
We have introduced Human Rights Policy, Diversity, Equity & Inclusion Policy and Stakeholder Engagement Approach in our policy structure.
ROAD AHEAD – Q1 FY24
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Introduce Customer Grievance Redressal Policy & Business Continuity Policy
Refresh CSR Policy, Code of Conduct, Supplier Quality Manual, POSH Policy & Whistle Blower Policy
Set up systems to review policies periodically in the future
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Q4 & FY23 EARNINGS CALL
SCHEDULED ON: Friday, January 28, 2023 AT 16:30 HOURS INDIA TIME
PRE-REGISTRATION LINK
CLICK HERE TO JOIN THE CALL
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Safe harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Ramkrishna Forgings Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the Presentation are not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
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COMPANY :
Ramkrishna Forgings Limited CIN : L74210WB1981PLC034281 Mr. Lalit Kumar Khetan (Whole Time Director & CFO) E: lalit.khetan@ramkrishnaforgings.com www.ramkrishnaforgings.com
INVESTOR RELATIONS ADVISORS :
Orient Capital (a division of Link Group)
Mr. Nikunj Jain +91 9769060608 nikunj.jain@linkintime.co.in
Mr. Amar Yardi +91 7045121239 amar.yardi@linkintime.co.in