Ramkrishna Forgings Limited has informed the Exchange about Investor Presentation
RAMKRISHNA FORGINGS LIMITED Date: 21st July, 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 Q1 FY24 Earnings Presentation of the Company for the Quarter ended 30" June, 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 CUSIP Sm OO re) VA e) dae = 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 Investor Presentation Q1 FY24
About Ramkrishna Forgings
One of the largest forging players in India
Vision, Mission & Core Values
Vision To Create Value for all business partners, shareholders and customers in all areas of business Ramkrishna Forgings Limited is associated while demonstrating world-class standards of Sustainability, Social Responsibility and Governance
Mission To be the most preferred supplier of forged, rolled, machined, fabricated and cast products for all end use industries like Railways, Automotive, Earth Moving, Mining, Farm Equipment, Oil & Gas and General Engineering globally by supplying products meeting highest quality standards at highly competitive costs
Core Values Customer centric approach Continual improvements in systems Commitment to human development
3
Ramkrishna Forgings Limited
Investor Presentation_2023
Key Highlights
Manufacturer and supplier of a variety of auto and non-auto components
Global presence with footprints in North America and Europe
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 components
Longstanding relationship with marquee customers
4
Ramkrishna Forgings Limited
Investor Presentation_2023
… with over four decades of unique capabilities
Company Incorporation
Investment from UTI Venture Funds Management Company (Ascent Capital Limited)
Received equity and debt funding from IFC. Equity funding from Wayzata for automated press
Commissioned 2 of its press lines of 6,300T & 12,500T
Commissioned a Hollow Spindle Line
1 8 9 1
6 0 0 2
3 1 0 2
5 1 0 2
0 2 0 2
4 0 0 2
Launched IPO
7 0 0 2
4 1 0 2
7 1 0 2
1 2 0 2
Commenced ring rolling press line with machining facilities
Commissioned 2 press lines of 3,150T and 4,500T. Commenced supplies to leading Tier I customer in North America
In-house R&D team received accreditation from DSIR. Raised ₹ 2,000mn via QIP
Commissioned 7,000T Press Line. Commissioned a Warm Forging Line and a Fabrication Facility
5
Ramkrishna Forgings Limited
Investor Presentation_2023
… at strategic locations giving us competitive edge
Proximity to automobile manufacturing hubs & key suppliers
o 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
o Better integration resulting in efficient processes o Improved coordination o Overall cost savings, including administrative costs
Proximity to key export hubs
Jharkhand
West Bengal
o Reduces logistics cost
• 302km* to Kolkata port • 270km* to Haldia port
Jamshedpur facility
Seraikela – Kharswan facility
Howrah facility
Kolkata Port
Haldia Port
Manufacturing facilities
Ports for Export
Availability of labor
o Eastern region is the industrial center of India o Low cost labor easily available o Lower dependency on migrant laborers
6
Ramkrishna Forgings Limited
Investor Presentation_2023
… demonstrating superior performance*
23 Countries Served
1,87,100T
Installed Capacity
Increased to 2,10,900T with effect from 18th July2023
87% Capacity Utilisation
1,34,654 Sales Volume 21% YoY
₹ 3,001 cr Revenue 31% YoY
100% Dividend#
3% Total Turnover from EV
₹ 668 cr EBITDA 27% YoY
22.3% EBITDA Margin
19.3% ROCE
17.8% ROE
1.6x Net Debt to EBITDA
*As on 31st March 2023 on standalone financials; #Dividend as % of Face Value of Rs 2 each
7
Ramkrishna Forgings Limited
Investor Presentation_2023
… clear focus on de-risking business
Company has a clear focus towards de- risking the business by reducing dependency on single product or single client
2019
2023
De-risking Business Strategies
New verticals
New product categories
New Geographies
New customers
Increased machining
New fabrication products
2
35
15
153
59%
0
4
51
23
218
74%
7
8
Ramkrishna Forgings Limited
Investor Presentation_2023
… offering diversified products
Front Axle & Steering
Engine
Suspension & Chassis
Transmission
Rear Axle
I Beam
Knuckle
Steering Arm
Tie Rod Arm
Sector Shaft
Front Hub
Crankshaft
Camshaft
Connecting Rod
Piston
Pitman Arm
BC Lever Assembly
Mounting Brackets
Yokes
UJ Cross
Transmission Gears
Transmission Shafts Gears
Crown Wheel
Pinion
Differential Case
Differential Case Cover
Spindle
Rear Axle Shaft
Spider
9
Ramkrishna Forgings Limited
Investor Presentation_2023
… offering diversified products
Front Axle & Steering
1,2,3 & 4 Cyl Forged Crankshafts
Crown Wheel & Pinion
Rear Axle Shafts
Transmission Shafts & Gears
Front Axle & Steering
Bucket
Backhoe Bucket
Shovel
Track Link
Track Roller
Bucket Tooth
Pivot Pin
Prop Shaft
Bearing Centre
10
Ramkrishna Forgings Limited
Investor Presentation_2023
… offering diversified products
Railways
Bogie Frame - LHB
Bogie Bolster - LHB
Bogie Frame– Euro Project
Bogie Frame – Kolkata Metro
Fully Assembled Bogie – Vande Bharat
Energy
Wing Nut
Valve Bonnet
T Bolt Socket Joint
Toothed Crusher Hammer
SUB 3 Inch - Female
Valve Seat- 5 inch
Tee Forging
11
Ramkrishna Forgings Limited
Investor Presentation_2023
… with growing global footprints
With consistently growing exports *
(₹ in crores)
+169.9%
1,185
990
518
439
Headquarters & Manufacturing facilities Headquarters – Kolkata 6 manufacturing facilities • Jamshedpur – 3 • Serailkela – Kharswan – 2 • Howrah – West Bengal – 1
Sales & support office: • Detroit, USA • Sao Paulo, Brazil • Istanbul, Turkey • Monterrey, Mexico • Toluca, Mexico • Frankfurt, Germany • Milan, Italy
Warehousing facility: • Shelbyville, USA • Hagerstown, USA • Indianapolis, USA • Monterrey, Mexico • Toluca, Mexico • Pubela, Mexico • Westerloo, Belgium
12
Ramkrishna Forgings Limited
FY2020
FY2021
FY2022
FY2023
*Export revenue from operations, excluding foreign exchange fluctuations
Investor Presentation_2023
Way Forward
Multiple vectors to accentuate growth and increase profitability
CLEARLY IDENTIFIED GROWTH STRATEGIES
Continued focus on De-risking
• Geographical – Further
diversification into international markets
• Sector – Increasing the gamut of
01
products that are currently manufactured towards non-automotive customers
• Product – Diversification into high margin, niche products and EV
Continued investment in innovation and technology
• Enhancing R&D capabilities to further provide competitive edge with respect to quality and cost
•
02
Investment in modern technology and equipments solidifying the competitive edge
03
Continued cost and process optimization
• Accelerated efforts to optimize and improve process efficiency
• Focus on achieving economies of scale
• Automation to increase
productivity & decrease cost
•
Increase Yields, decrease RMC
14
Ramkrishna Forgings Limited
Investor Presentation_2023
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 company has commissioned 23,800T of capacity as on 18th July 2023 and the remaining 32,500T will be commissioned by September 2023. In addition, the company has planned to setup cold forging capacity of 25,000T
Installed Capacity (in Tons)*
140,900
23,800
46,000
117,100
❖ The Company has sufficient capacity for the next phase of healthy &
robust growth.
24,000
❖ Capacity ramp-up along with operating leverage will result in faster
improvement in profitability
❖ Future growth capex through internal accruals
Ring Rolling
Forgings
Press
*As on 18th July 2023
Leveraging Free Cash Flows generated to Fund Growth Capex
15
Ramkrishna Forgings Limited
Investor Presentation_2023
Cold forgings capability
Total capacity of 25,000T will be added
The total project cost for the project will be ₹ 125 Cr
Cold Forging Press line to be commissioned by Q1FY25
Entire 100% capacity has been booked by an OEM, the contract of the same is valid for 7 years
16
Ramkrishna Forgings Limited
Investor Presentation_2023
Accelerated growth through organic route
COMBINING FORCES FOR SUCCESS
Rail Wheel Project
❖ Ramkrishna Forgings & Titagarh Rail Systems Consortium receives LOA for Manufacturing and Supplying of Forged Wheels for the Indian Railways
❖ Ramkrishna Forgings holds 51% in the Joint Venture and is a
lead partner in this railway contract
❖ It will establish a manufacturing plant
in production of 200,000 forged wheels per annum
India for the
❖ Expected to start operation by end of FY26
17
Ramkrishna Forgings Limited
Investor Presentation_2023
Accelerated growth through inorganic route (1/2)
FORAYING INTO NEWER SEGMENTS
ENHANCING PRODUCT PORTFOLIO
EXPANDING THE EV PORTFOLIO
ACIL
JMT Auto
RKFL - TSUYO
❖ Lenders to ACIL Ltd have approved a resolution plan by Ramkrishna Forgings Limited
❖ Lenders to JMT Auto, a unit of Amtek Auto group, have approved a resolution plan by Ramkrishna Forgings Limited
❖ The acquisition will help the company to
foray into Tractors and PV segments
❖ 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
❖ 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
❖ The acquisition will be financed through
internal
internal accruals and debt
accruals and debt
❖ As of now Supreme Court decision
is awaited to initiate the acquisition process, which is expected in Q3FY24
❖ They have 6 plants in Jamshedpur & 2 plants in Dharwad
in western India
❖ NCLT order is expected to be received by Sept’23
❖ Ramkrishna Forgings to acquire upto 51%
voting rights in TSUYO Manufacturing”
❖ Ramkrishna Forgings approved an investment to acquire upto 51% voting rights of TSUYO Manufacturing Private Limited (“TSUYO”)
❖ It is a leading Mid-Drive BLDC, IPM and AC Induction based motor topologies & a Make- In-India in powertrain solutions for electric vehicles
company engaged
start-up
❖ It will aid in expanding its facilities for the manufacture of motors, controllers, E-axles, and differentials
❖ 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
18
Ramkrishna Forgings Limited
Investor Presentation_2023
Accelerated growth through inorganic route (2/2)
Details & Rationale of the acquisition
o
o
o
o
o
o
Ramkrishna Forgings (RKFL) to acquire Multitech Auto Private Limited and its wholly owned subsidiary Mal Metalliks Private Limited with a capacity to manufacture 21,600 MT p.a of Machined SG & CI Castings and Bar Draw Facility of 6000 MT p.a.
This acquisition will help RKFL to manufacture and supply the entire differential assembly and trailer axle assembly consisting of Casting and Forgings
It will strengthen the presence of RKFL in Passenger Vehicles, Light Commercial Vehicles & Heavy Commercial Vehicles segment
This acquisition will additionally contribute Rs. 500-600 crores to the consolidated topline in the next 2 years and also achieve its target of increasing value add products and complete ready to mount assembly for MHCV
RKFL is also acquiring Mal Auto Products Private Limited with 10 acres land (4,30,000 sq. ft approx.) which will be used for further expansion
This acquisition will aid further value add combined with forgings to be value accretive
About Multitech Auto Private Limited
o Multitech Auto Pvt. Ltd. (MAPL), incorporated in 1994 in Jamshedpur as a Machine Shop to supply high quality Machined part, have over the years been able to set up a wholly owned foundry and a cold drawing Bright Bar Unit.
o
o
o
It is an IATF 16949:2016 certified company
The company is one of the leading ADI Castings player in India
The company has a wide range of hi-tech, precision machined, heat treated and ground automobile components from bars, castings, primarily for brakes, gear boxes, axle and suspension parts of commercial vehicles and railway, having extensive and modern machining facilities, SCADA Controlled Heat Treatment facilities and well equipped inspection facilities for metrological, material testing and verification
o
The company Manufacture’s machined cast parts for Medium and Heavy Commercial vehicles, Railways.
19
Ramkrishna Forgings Limited
Investor Presentation_2023
RKFL’s vision on acquiring MAPL
• Ramkrishna Forgings aims to enter in the manufacturing of Trailer Axle Assembly and Differential Assembly
with this acquisition.
• Market size of both the above products is very significant. •
The company aims to capture 20% of market share of Trailer Axle Assembly in next 3 years.
Trailer Axle Assembly
Differential Assembly
20
Ramkrishna Forgings Limited
Investor Presentation_2023
EV programs running globally
North America
Europe
India/ASIA Pacific
India / Asia Pacific 5 Customer ❖ 7 Programs ➢ 6 Programs
Europe 2 Customer ➢ 3 Programs
North America 1 Customer ❖ 5 Programs ➢ 4 Programs
❖ Programs in Serial Productions ➢ Programs in Order book ➢ Swedish OEM awards business worth 15 million Euros for component to their EV truck for European Market to commence their development & supplies till 2030 for the awarded business.
21
Ramkrishna Forgings Limited
Investor Presentation_2023
MD’s insights and reflections
MR. NARESH JALAN
Our company is committed to stringent capital allocation practices, aimed at improving return ratios and generating higher shareholder value. We prioritize sustainable growth and profitability by carefully evaluating investment opportunities and integrating sustainability principles into our operations. Through automation and artificial intelligence, we are in process of enhancing operational efficiency, increase productivity, and address evolving customer demands. Our focus on improving return on capital employed (ROCE) and return on equity (ROE) drives financial performance.
We remain vigilant and closely monitor macroeconomic risks, proactively mitigating them by prioritizing customer relationships and delivering excellent service. We are dedicated to proactively positioning ourselves for future growth and increasing our market share. Our strategic focus revolves around preparing for improved market conditions, ensuring that we are well-prepared to seize opportunities. This includes our efforts to enhance our capacity, aligning our actions with our long-term vision to thrive and succeed in the future.
Additionally, we are actively working towards reducing our debt burden, targeting a Debt to EBITDA level of 1:1 by FY25. This disciplined approach will strengthen our financial position, reduce risks, and provide us with flexibility to pursue growth opportunities.
22
Ramkrishna Forgings Limited
Investor Presentation_2023
Financial Prudence
Diversified revenues across segments & geographies
By Geography
By Segment
Q1FY24
By Industry
Q1FY24
FY23
Q1FY23
23%
21%
Automobiles
78.8%
78.6%
80.3%
17%
60%
79%
Asia
Europe
North America
Auto
Non-Auto
By Geography
By Segment
FY23
25%
21%
Railways
Mining, Earth Moving, Farm & Gen. Engg
Oil & Gas
Others
3.2%
8.5%
1.9%
7.6%
2.9%
8.4%
1.9%
8.2%
2.1%
7.0%
1.9%
8.7%
15%
60%
79%
Continued focus on de-risking of geographical revenue by new customer additions globally. Absolute contribution from North America, Latin America, Europe and South East Asia has increased
Asia
Europe
North America
Auto
Non-Auto
Strong growth across both domestic (8% CAGR) and export markets (24% CAGR) from FY19 to FY23
24
Ramkrishna Forgings Limited
Investor Presentation_2023
… coupled with increasing volumes
Volume (tons)
Realisation (Rs. Lac/ (ton)
Volume (tons)
Realisation (Rs. Lac/ (ton)
+25%
38,588
38,145
24,611
24,182
1.86
1.89
1.88
13,977
13,963
2.40
2.42
2.45
30,496
20,726
9,770
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
+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
Domestic Markets*
Export Markets**
Domestic Markets*
Export Markets**
Total Revenue Breakup (Rs. Lakhs.)
Total Revenue Breakup (Rs. Lakhs.)
Particulars
Q1FY24
Q1FY23
YoY
Q4FY23
Domestic Markets
48,243
39,925
20.8%
49,037
QoQ
-1.6%
Export Markets
34,564
24,739
39.7%
33,811
2.2%
Particulars
Domestic Markets
Export Markets
FY23
FY22
1,74,498
1,24,086
1,23,351
1,02,837
Other Income & Export Incentive
1,261
477
164.4%
862
46.3%
Other Income & Export Incentive
2,628
1,775
YoY
40.6%
19.9%
48.1%
Total
84,068
65,141
29.1%
83,710
0.4%
Total
3,00,477
2,28,698
31.4%
*Realisation excluding Fabrication sales ** Realisation excluding ocean freight
25
Ramkrishna Forgings Limited
Investor Presentation_2023
…. leading to higher utilizations
Particulars
Installed Capacity
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Production Capacity (MT)
Utilisation (%)*
Q1FY24
Q4FY23
Q1FY23
Ring Rolling
24,000
7,617
127%
8,047
134%
7,018
117%
Forgings
46,000
11,944
104%
12,655
110%
10,963
95%
Press
117,100
23,681
81%
27,660
94%
18,489
63%
Total Capacity
187,100
43,242
92%
48,362
103%
36,470
78%
*Utilzation (%) has been calculated on installed capacity on Annualized basis
26
Ramkrishna Forgings Limited
Investor Presentation_2023
Strong key ratios
ROCE (%)
14.7%
19.3%
20.1%
18.9%
17.8%
19.0%
ROE (%)
5.8%
4.6%
3.1%
FY20*
FY21**
FY22
FY23
Q1FY24#
1.1%
FY20*
FY21**
FY22
FY23
Q1FY24#
Fixed Asset Turnover (x)
Net Debt to EBITDA (x)
1.7
1.8
4.7
4.7
1.5
0.8
0.9
2.5
1.6
1.55
FY20*
FY21**
FY22
FY23
Q1FY24#
FY20*
FY21**
FY22
FY23
Q1FY24#
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; #Q1FY24 numbers are annualized.
27
Ramkrishna Forgings Limited
Investor Presentation_2023
Financial Performance
Key performance indicator (Standalone)
(₹ in lakhs)
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
22.1%
22.5%
22.4%
7.3%
8.0%
9.2%
+28%
83,540
83,595
+31%
18,816
18,754
65,075
14,370
+63%
6,682
7,697
4,726
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
Revenue*
+31%
300,100
228,537
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
23.1%
22.3%
+27%
66,819
52,697
9.0%
7.9%
+14%
20,650
23,559
FY22
FY23
FY22
FY23
FY22
FY23
*Excluding Other Income ; Note: Rounded off to the nearest whole number
29
Ramkrishna Forgings Limited
Investor Presentation_2023
Key performance indicator (Consolidated)
(₹ in lakhs)
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
21.4%
21.8%
21.5%
7.3%
7.7%
8.8%
+28%
89,164
89,234
+28%
19,400
19,197
69,933
14,994
+53%
6,845
7,853
5,139
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
Revenue*
+38%
319,290
232,025
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
22.3%
21.7%
+34%
69,232
51,699
8.5%
7.8%
+25%
24,811
19,803
FY22
FY23
FY22
FY23
FY22
FY23
*Excluding Other Income ; Note: Rounded off to the nearest whole number
30
Ramkrishna Forgings Limited
Investor Presentation_2023
Income Statement
Particulate (₹ in lakhs)
Revenue from Operations
Cost of Goods Sold
Gross Profit
Gross Profit Margin
Employee Cost
Power and Fuel
Other Expenses
EBITDA
EBITDA Margin
Other Income
Depreciation
EBIT
EBIT Margin
Finance Cost
Exceptional Item Gain / (Loss)
Profit before Tax
Profit before Tax Margin
Tax
Profit After Tax
Profit After Tax Margin
31
Ramkrishna Forgings Limited
*Note: Rounded off to the nearest whole number
FY19
FY20
FY21
FY22
FY23
1,80,669
1,11,182
1,28,838
2,28,537
3,00,100
92,650
88,019
48.7%
9,682
14,248
26,139
37,950
21.0%
299
12,083
26,166
14.5%
7,922
-
18,244
10.1%
6,313
11,931
6.6%
50,673
60,509
54.4%
9,424
9,719
20,995
20,372
18.3%
602
12,016
8,957
8.1%
7,515
-
1,442
1.3%
480
961
0.9%
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%
1,03,077
1,44,374
1,25,459
1,55,725
54.9%
12,028
15,240
45,493
52,697
23.1%
161
16,906
35,952
15.7%
9,335
51.9%
14,431
18,792
55,683
66,819
22.3%
377
20,135
47,061
15.7%
11,496
-
-
26,617
11.6%
5,967
20,650
9.0%
35,565
11.9%
12,005
23,559
7.9%
Investor Presentation_2023
Balance Sheet
Particulate (₹ in lakhs)
Net block (Tangible assets) Intangible assets Investments Other non-current assets Total non ‐ current assets Inventories Investments Trade receivables Cash and cash equivalents Other current assets Total current assets Total assets Total equity Borrowings Lease liabilities Other non-current liabilities Total non-current liabilities Borrowings Lease liabilities Trade payables Other current liabilities Total current liabilities Total equity & liabilities
FY19
FY20
FY21
FY22
FY23
123,445 145 1,930 5,323 130,843 33,126 0 46,604 248 4,088 84,066 214,909 87,290 45,816
7,687 53,503 33,207
26,472 14,437 74,116 214,909
137,376 922 1,930 4,274 144,502 35,719 0 30,260 233 7,049 73,261 217,763 87,643 47,903 353 7,622 55,878 36,425 40 20,693 17,084 74,242 217,763
149,385 1,088 1,938 3,174 155,585 42,994 0 55,993 6,680 6,671 112,338 267,923 88,997 66,360 378 8,287 75,025 54,160 22 42,916 6,803 103,901 267,923
155,903 3,171 1,938 7,111 168,123 68,267 5,500 87,781 3,237 10,704 175,489 343,612 109,408 85,945 2,280 9,495 97,720 71,794 429 57,457 6,804 136,484 343,612
173,955 3,041 1,939 9,543 188,478 86,852 0 72,536 4,247 10,946 174,581 363,059 132,492 75,092 2,054 16,077 93,223 49,008 550 76,614 11,172 137,344 363,059
32
Ramkrishna Forgings Limited
*Note: Rounded off to the nearest whole number
Investor Presentation_2023
Cash Flow Statement
Particulate (₹ in lakhs)
Cash Flow from Operating Activities
Profit before Tax
FY19
FY20
FY21
FY22
FY23
18,244
1,442
4,148
26,617
35,565
Adjustment for Non-Operating Items
18,022
17,667
18,453
23,592
26,758
Operating Profit before Working Capital Changes
36,266
19,109
22,601
50,210
62,322
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
-4,841
6,678
-9,394
-41,746
22,177
31,425
25,786
13,207
8,464
84,499
-4,148
-670
-557
-4,556
-6,724
27,277
25,116
12,650
3,908
77,776
-25,385
-22,493
-22,622
-35,348
-29,727
-1,735
-2,590
16,405
27,884
-47,057
157
37
194
33
194
226
6,432
-3,556
226
6,659
6,659
3,102
992
3,102
4,094
33
Ramkrishna Forgings Limited
*Note: Rounded off to the nearest whole number
Investor Presentation_2023
Our Commitment
Delivering shared value to planet, people & stakeholders through our ESG Vision
ENVIRONMENTAL CONSCIOUSNESS
ROBUST GOVERNANCE
We will take sustained efforts towards creating a healthy planet by reducing our carbon footprint, mitigating climate change and optimizing our business operations
Following an effective governance model and focus on business integrity to achieve business & sustainability goals
VALUABLE PARTNERSHIPS
REWARDING WORKPLACE
EMPOWERED COMMUNITIES
Develop relationships with our suppliers through assessments, collaborations, capacity building and develop a resilient supply chain
Investor Communication
We value a diverse workforce and work towards creating a healthy workplace where talent is developed, recognized and rewarded
Ensuring positive relationships with our communities and contributing to their welfare by reducing inequality, promoting education, health and gender equality
July 2023 35
Ramkrishna Forgings Limited
Investor Presentation_2023
Preserving and protecting the environment across our operations (1/2)
Our Targets
Key Initiatives
Carbon Neutral
across scope 1 & 2 by 2050
50%
of energy use will be from renewable sources by 2028
01 Waste & Water Management
•
Setting up an effluent treatment plant, sewage treatment plant, cooling tower, and compressor on our plant premises
ETP
STP
Plant 5
150 KLD
62 KLD
Plant 7
100 KLD
65 KLD
100%
recycling of water for use by 2025
•
Recycling 71,000 litres of water per day
02
Product Stewardship
50%
decrease in overall waste through the 3R approach
•
Conducting Life Cycle Assessment for three of our products - front axel beam, crown wheel and knuckles by considering impact at each stage of the product’s life cycle from raw material extraction to transportation, product use and disposal
Ramkrishna Forgings Limited
Investor Presentation_2023
Preserving and protecting the environment across our operations (2/2)
Key Initiatives
03 Energy Optimisation
•
•
Developed a carbon-neutral strategy wherein key levers for decarbonisation are optimizing energy use, transitioning to renewable energy, switching to zero carbon fuel and carbon offsets
Identified initiatives for emission reduction including – • Renewable energy power procurement inline with RE100 • Replacement of motors under NMRP* • Optimising cooling tower functionalities • Retrofitting compressors with VFD** for unloading power
optimization
Setting up an 8MW solar power plant in our Jamshedpur Plant through an approximate investment of INR 30 Cr, in addition to the existing 1MW solar plant.
Category-wise emissions (tCO2e) in FY2022-23
FY 2021-22
FY 2022-23
83,310
54,684
223,526
188,057
133,144
139,986
228
230
Scope 1 Fuel Combustion
Scope 1 Fugitive Emissions
Scope 2 Purchased Electricity
Total
Ramkrishna Forgings Limited
Investor Presentation_2023
Aspiring to be employer and partner of choice
Our Targets
Key Initiatives
55%
increase in employee volunteering participation by 2030
Well Being
program focused on employees’ mental and physical health will be launched in 2023
Supply Chain
framework to work with supplier responsibly
01
Responsible Supply Chain Management
•
•
•
Categorised suppliers based on criticality using factors such as business volume, procurement spent, non-substitutability & price sensitivity
Planning to conduct sample supplier audits which will help evaluate suppliers on ESG parameters
Refreshing Supplier Quality Manual to include sustainability as a parameter in vendor evaluation
02
Employee Development
•
•
Conducted training sessions on ESG Awareness, Human Rights and Diversity, Equity & Inclusion across all our plants
Introducing Capacity Building Workshop on Employee Code of Conduct & Supplier Quality Manual to create a robust & ethical working environment
Ramkrishna Forgings Limited
Investor Presentation_2023
Aspiring to be employer and partner of choice
Our Targets
10%
increase in representation of women in our leadership by 2030
Train
all permanent employees to live the values set out in the Code of Conduct
Raise the Bar
to drive business growth and deliver on our ESG Vision
Key Initiatives
01
Policy Formulation
•
•
•
•
Refreshed Corporate Responsibility Policy as per Ministry of Corporate Affairs Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022
Introduced Stakeholder Engagement Approach which includes details of engagement priority concerns, channels & frequency
Reviewing existing policies on POSH & whistle-blower mechanism
Introducing a new policy on customer grievance redressal
Ramkrishna Forgings Limited
Investor Presentation_2023
Q1FY24 EARNINGS CALL
SCHEDULED ON:
Friday, July 21, 2023 AT 16:30 HOURS INDIA TIME
PRE-REGISTRATION LINK
CLICK HERE TO JOIN THE CALL
40
Ramkrishna Forgings Limited
Investor Presentation_2023
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.
Ramkrishna Forgings Limited
Investor Presentation_2023
THANK YOU
COMPANY :
INVESTOR RELATIONS ADVISORS :
Ramkrishna Forgings Limited CIN : L74210WB1981PLC034281
Mr. Lalit Kumar Khetan (Whole Time Director & CFO)
E: lalit.khetan@ramkrishnaforgings.com
www.ramkrishnaforgings.com
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