Ramkrishna Forgings Limited has informed the Exchange about Investor Presentation
RAMKRISHNA FORGINGS LIMITED
Date: 18t January, 2024
To The Listing Department BSE Limited P] Towers Dalal Street - 400 001 Mumbai
To The Listing Department National Stock Exchange of India Limited “Exchange Plaza” C-1, Block G Bandra- Kurla Complex, Bandra (E) Mumbai- 400051
BSE SCRIP CODE: 532527
NSE SYMBOL: RKFORGE
Dear Sir / Madam,
Sub:
Announcement under Regulation 30 of the SEBI (Listing Obligations and
=
n
n
Please find enclosed herewith the copy of the Q3 & 9M FY24 Earnings Presentation of the Company for the Quarter and Nine Months ended 31t December, 2024.
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
p:
REGISTERED & CORPORATE OFFICE
4
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 - January 2024
Investor Presentation - January 2024
The Journey Has Just Begun…
The Journey Has Just Begun…
About Ramkrishna Forgings
MD’s insights and reflections
MR. NARESH JALAN
At Ramkrishna Forgings, we are actively gearing up for the future of engineering industry. We have our sights set firmly on helping to bring the future of mobility to global consumers faster. A diversified presence across geographies and vehicle segments keeps us in touch with myriad consumer and market needs and evolving preferences.
We integrate this knowledge into our offerings to consistently deliver best-in-class products that exceed consumer expectations which helps us to build lasting bonds within the engineering industry. In our own determined ways, we are working towards ensuring a brighter and more sustainable future. A customer- centric, growth-focused approach will ensure strong business development and consistent market share gains. Robust financials and industry-leading metrics will keep us in a position to make a positive difference to all our stakeholders.
Additionally, we are delighted to receive an overwhelming response to the QIP of INR 1000 crores recently. This capital infusion positions us to enter the next phase of our company's growth journey, with a significant focus on reducing debt and advancing our manufacturing initiatives. The enthusiastic support from investors reflects their confidence in our business model, reinforcing our dedication to sustainable growth. We look forward with excitement to the promising opportunities ahead as we elevate our company to new heights.
3
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Key Highlights
Manufacturer and supplier of a variety of auto and non-auto components
Promoter possessing multi-decade Engineering industry experience
Global presence with footprints in North America, Europe, South America , South East Asia
One of the largest player in metal processing in India
Continued focus on diversification with foray into EV components
Longstanding relationship with marquee customers
4
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
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
5
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
… with over four decades of unique capabilities
Company Incorporation
Commenced ring rolling press line with machining facilities
In-house R&D team received accreditation from DSIR.
1 8 9 1
7 0 0 2
6 1 0 2
Acquired ACIL under IBC vide NCLT order
• Commissioned 7,000T
Press Line
• Commissioned Warm
Forging Line
• Commissioned sheet metal fabrication line for manufacturing of Railway products
1 2 0 2
4 2 0 2
Launched IPO
4 0 0 2
Commissioned 2 of its Press Lines of 6,300T & 12,500T
5 1 0 2
0 2 0 2
Commissioned a Hollow Spindle Line
• Commissioned RA Shaft Press Line and a 5” Upsetter
3 2 0 2
•
• Acquired Multitech Auto
• Acquired JMT Auto
under IBC
• Raised ₹10,000mn via
QIP
66
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
… 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
Manesar, Gurugram facility
hubs and key suppliers of raw material • Less chance of supply interruptions • Lower logistics cost • Reduced working capital requirements
Major facilities located within the same region
o Better integration resulting in efficient processes o Improved coordination o Overall cost savings, including administrative costs
Jharkhand
West Bengal
o Reduces logistics cost
• 302km* to Kolkata port • 270km* to Haldia port
Proximity to key export hubs
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
7
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
… technology powered by in-house R&D and testing capabilities
In-house R&D and testing capabilities
Digital tools
Impact
56 Member R&D Team1
Testing Facility
◼ National Accreditation Board for
Testing and Calibration Laboratories accreditation
Auto CAD
Unigraphics
Commercial computer aided design and drafting software application
CAD/CAE/CAM software product
VeraCAD
Graphically interactive design software for stretch roll segments
Forge® Nxt
DEFORM
Product Innovation
Enhanced Product Quality
Cost benefits
Process Improvements
Simulates hot and cold- forming processes
Enables designers to analyze metal forming, heat treatment, machining and mechanical joining processes
Reduced manufacturing time
Improved customer satisfaction
1As of March 31, 2023
8
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
… 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_ January 2024
… offering diversified products
Tractors & Tillers
1,2,3 & 4 Cyl Forged Crankshafts
Crown Wheel & Pinion
Rear Axle Shafts
Transmission Shafts & Gears
Earth Moving
Bucket
Backhoe Bucket
Shovel
Track Link
Track Roller
Bucket Tooth
Pivot Pin
Prop Shaft
Bearing Centre
10
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
… 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_ January 2024
… 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 – 13 (RKFL 3- MAPL -2 , MMPL -2, JMT -6) • Serailkela – Kharswan – 2 • Howrah – West Bengal – 1 • Dharwad- 2 (JMT)
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_ January 2024
Way Forward
Multiple vectors to accentuate growth and increase profitability
1
2
Global Markets
Further enhance geographic presence to capture global market opportunities
Diversification Strategy
Continue the diversification strategy with increasing focus on non-automotive categories
02
Focus on EV
3
Focus on increasing revenue share of EV business
01
03
Expanding Capabilities
Expand our manufacturing capacities
4
Inorganic Opportunities
Explore inorganic opportunities offering strategic benefits
5
04
05
1414
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Well positioned to capture future growth
❖ The company is in the process of adding capacity of 32,500T consisting
of warm forging press, upset forgings and 6000T press line.
❖ The company has planned to set up cold forging line and 8,000T hot forging Press line along with some small press lines which will further enhance the capacity of the company by 65,000T
❖ 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
New 8000T Press Line
Cold forgings capability
8000T Forging Press line
Entire 100% capacity has been booked by an OEM, the contract of the same is valid for 7 years
Commercial Operational Date Dec 24
Cold Forging Press line to be commissioned by Q1FY25
❖ Enhance global presence, diversify products for non-automotive
customers, and explore high-margin niche products & EV
Project cost 80 Crores
The total project cost for the project will be ₹ 125 Cr
❖ Improve process efficiency, economies of scale, utilize automation for
higher productivity & optimize yields by reducing RMC
Total capacity after addition of above lines will increase from 2,10,900T to 3,08,400T
15
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
About Multitech Auto
❖ Multitech Auto Pvt. Ltd. (MAPL) - MAPL today is regarded as the pioneers of high- quality SG and CI Castings and the first to introduce ADI castings in Eastern India. Now the company is one of the leading ADI Castings player in India.
❖ The manufacturing capabilities include Precision Machined Austempered Ductile Iron (ADI) Castings, Precision Machined SG & CI Castings from 1KG to 45KG Weights – 1,800 MT/Month, Bar Draw Facility with Capacity of 500 MT/ Month.
❖ 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.
❖ The company Manufacture’s machined cast parts for Medium and Heavy Commercial
vehicles, Railways.
Way forward
❖ RKFL proposes to add further capacities in MAPL and take it to 70,000 Mtpa by FY 24-
25.
❖ Currently the EBITDA of MAPL is at 16%, RKFL aims to achieve an EBITDA of 18% by
FY25-26.
Assembly Products
Al uminium Top Cover As sembly
As sembly Top Cover
Shi ft Cyl inder
Machined Castings
Shafts & Bar Items
16
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
About JMT Auto
❖ JMT Auto has a 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. Equipped with advanced CNC Technology, the company's core strength lies in producing high precision Gears and Shafts.
❖ JMT Auto has 6 plants in Jamshedpur & 2 plants in Dharwad.
❖ The company was manufacturing different components which range from Engine components, Gears, Shafts, Pins, Bushes, Idler Bearings, Carrier Housing, Gear Rings, Axles, Synchro Cones, Carriers, Gear Box Assemblies, Seal wear rings, Oil Pump Cover ,Drums Sleeves, Carrier Assemblies, Pipe Assemblies, Flywheel Assemblies, Sear Wear ring, Cone And Cup(Heat Treatment),Bushes, Oil Pump Gear, Seat Valve, Lever Rocker Assembly, Steering Spindle, Assemblies, Engine Gears, Spindles, Drums for light, Medium & Heavy Commercial Vehicles, Tractors and Diesel Engines.
❖ JMT Auto's primary clientele in the domestic sector included companies such as BEML, KOBELCO, Caterpillar, Cummins, L&T, and Komatsu, among others. In the international market, they serve clients like Halliburton, Daimler Chrysler, GM, Danfoss, and Massey Ferguson, to name a few.
❖ The Company is in advance stage of discussion for supply of some of its
products to the above customers
❖ The company is likely to commence Casting and Forging division by April 2024
and a Machining division by May 2024.
❖ The company aims to achieve a turnover of Rs 400-500 crores from JMT Auto
by FY26
ENGINE COMPONENTS
As s y. Rock Lever
Cra nk Shaft Gear
FIP
Gea r 2W
GEAR COMPONENTS
AXLE COMPONENTS
EXCAVATOR COMPONENTS
OTHER COMPONENTS
17
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Accelerated growth through inorganic route - ACIL
About ACIL
Details & Rationale of the acquisition
❖ ACIL Limited is engaged in manufacturing of high precision engineering automotive components. It majorly manufactures crankshafts for tractors, HCV, LCV as well as two wheelers. Besides, the company also manufactures connecting rods, steering knuckles and hubs.
❖ Over the years, it has served automobile manufacturers like John Deere Ltd, New Holland Tractor Ltd, SML Isuzu Ltd, International Tractors Limited, Honda Motorcycles & Scooters India Limited, Maruti Suzuki India Limited, Escorts Ltd., etc.
❖ ACIL has a plant at IMT Manesar, Gurugram, Haryana.
❖ The acquisition of ACIL will be financed through internal accruals
and debt
❖ ACIL is having a machining plant. All forgings are proposed to be supplied from Ramkrishna Forgings (RKFL) Jamshedpur. This will lead to optimization of forging production at RKFL end.
❖ This acquisition will help RKFL to foray into Tractors and PV segments
❖ It will be a forward integration which will enable the company to supply machined crankshafts for tractors, PV, HCV, LCV as well as two wheelers.
❖ RKFL will get new set of customers like John Deere Ltd, New Holland Tractor Ltd, SML Isuzu Ltd, International Tractors Limited in Farm Equipment Sector and Honda Motorcycles & Scooters India Limited, Maruti Suzuki India Limited in the Passenger Vehicle Sector.
❖ The product line of ACIL can be offered to the existing customer of RKFL and similarly RKFL existing product portfolio could be extended to the above mentioned customers of ACIL.
❖ ACIL have a carry forward tax loss of more than Rs 700 Crores which will have positive impact on cashflows of RKFL once it gets merged with RKFL
18
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
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 India for the
production of 228,000 forged wheels per annum
❖ Expected to start operation by end of FY26
19
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Financial Prudence
Diversified revenues across segments & geographies
By Geography
By Segment
9MFY24
By Industry
9MFY24
FY23
9MFY23
22%
Automobiles
77.9%
78.6%
79.3%
25%
16%
59%
78%
As i a
Europe
North Ameri ca
Auto
Non-Auto
By Geography
By Segment
FY23
Railways
Mining, Earth Moving, Farm & Gen. Engg
Oil & Gas
3.3%
7.1%
1.2%
Others
10.5%
2.9%
8.4%
1.9%
8.2%
2.8%
8.0%
1.6%
8.3%
25%
15%
60%
21%
Strong growth across both domestic (8% CAGR) and export markets (24% CAGR) from FY19 to FY23
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
As i a
Europe
North Ameri ca
Auto
Non-Auto
21
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
… coupled with increasing volumes
Volume (tons)
Realisation (Rs. Lac/ (ton)
Volume (tons)
Realisation (Rs. Lac/ (ton)
+25%
38,756
41,586
23,831
28,263
33,390
20,842
12,548
14,925
13,323
1.90
2.43
1.85
1.84
2.57
2.55
Q3FY23
Q2FY24
Q3FY24
Q3FY23
Q2FY24
Q3FY24
Domestic Markets*
Export Ma rkets**
+23%
118,488
76,277
42,211
9MFY24
96,066
62,099
33,967
9MFY23
1.94
2.46
1.86
2.52
9MFY23
9MFY24
Domestic Markets*
Export Ma rkets**
Total Revenue Breakup (Rs. Lakhs.)
Total Revenue Breakup (Rs. Lakhs.)
Particulars
Q3FY24
Q3FY23
YoY
Q2FY24
QoQ
Particulars
Domestic Markets
55,456
41,911
32.3%
47,126
17.7%
Domestic Markets
9MFY24
150,825
9MFY23
125,462
Export Markets
34,047
32,691
4.1%
38,447
-11.4%
Export Markets
107,059
89,539
Other Income & Export Incentive
945
710
33.1%
1,224
-22.8%
Other Income & Export Incentive
3,431
1,765
Total
90,448
75,312
20.1%
86,797
4.2%
Total
261,315
2,16,766
YoY
20.2%
19.6%
94.4%
20.6%
*Rea lisation excluding Fabrication sales ** Rea lisation excluding ocean freight
22
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
…. leading to higher utilizations
Particulars
Installed Capacity
Production (MT)
Utilization (%)*
Production (MT)
Utilization (%)*
Production (MT)
Utilization (%)*
Q3FY24
Q2FY24
Q3FY23
Ring Rolling
24,000
8,865
148%
7,632
127%
7,390
123%
Forgings
56,100#
12,838
Press
130,800#
28,681
Total Capacity
210,900#
50,384
92%
88%
96%
12,299
25,477
45,408
91%
79%
88%
12,810
111%
19,880
40,080
68%
86%
*Utilization (%) has been calculated on installed capacity on Annualized basis; #Capacity increased for Forging Facility from 46,000 MT to 56,100 MT on July 18, 2023 Capacity increased for Press Facility from 117,100 MT to 130,800 MT on July 18, 2023 . The total capacity increased from 187100 MT to 210,900 MT on July 18, 2023
23
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Strong key ratios
ROCE (%)
16.3%
19.3%
19.1%
20.8%
19.5%
15.9%
ROE (%)
6.0%
3.2%
FY21**
FY22
FY23
9MFY24#
FY21**
FY22
FY23
9MFY24#
Fixed Asset Turnover (x)
Net Debt to EBITDA (x)
1.7
1.9
2.1
4.7
1.1
FY21**
FY22
FY23
9MFY24#
FY21**
2.5
FY22
1.6
FY23
0.8
9MFY24#
ROCE- EBIT Less Other Income / Average (Net Debt + Equity); Net Debt to EBITDA- Net Debt/ EBITDA; FATR- Revenue / Average Fixed Assets (Net) including Right to use of Assets; ROE – Net Profit after Tax / Average Networth ** - FY21 Performance impacted due to COVID-19 induced lockdown; #9MFY24 numbers are annualized.
24
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Financial Performance
Key performance indicator (Standalone)
(₹ in lakhs)
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
22.1%
22.9%
23.0%
7.7%
9.2%
9.1%
+20%
86,462
90,288
75,231
+25%
19,794
20,750
16,628
+43%
7,955
8,226
5,757
Q3FY23
Q2FY24
Q3FY24
Q3FY23
Q2FY24
Q3FY24
Q3FY23
Q2FY24
Q3FY24
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
+20%
2,60,344
2,16,560
22.2%
22.8%
+24%
59,298
48,003
7.8%
9.2%
+41%
23,877
16,877
9MFY23
9MFY24
9MFY23
9MFY24
9MFY23
9MFY24
*Excluding Other Income ; Note: Rounded off to the nearest whole number
26
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Key performance indicator (Consolidated)
(₹ in lakhs)
Revenue*
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
+36%
98,149
1,05,779
77,748
+30%
20,599
22,462
17,299
+42%
8,220
8,686#
6,104
22.2%
21.0%
21.2%
7.9%
8.4%
8.2%
Q3FY23
Q2FY24
Q3FY24
Q3FY23
Q2FY24
Q3FY24
Q3FY23
Q2FY24
Q3FY24
#The consolidated PAT was impacted by a partial one-time hit of Rs. 291 Lakhs in Multitech Auto due to IND AS accounting Adj. and by Rs. 303 Lakhs due to JMT Auto acquisition; otherwise, PAT would have been Rs. 9,280 Lakhs.
Revenue*
+27%
2,93,162
2,30,125
EBITDA* & EBITDA Margin
PAT & PAT Margin (%)
21.7%
21.2%
+25%
62,257
49,832
7.8%
8.4%
+38%
24,759
17,966
9MFY23
9MFY24
9MFY23
9MFY24
9MFY23
9MFY24
*Excluding Other Income; Note: Rounded off to the nearest whole number 27
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Income Statement
Particulars (₹ 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
FY20
FY21
111,182
128,838
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%
FY22
228,537
103,077
125,459
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%
FY23
9MFY24
300,100
144,374
155,725
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%
260,344
131,211
129,133
49.6%
12,540
15,853
41,442
59,298
22.8%
970
17,909
42,359
16.3%
10,694
-
31,665
12.2%
7,788
23,877
9.2%
28
Ramkrishna Forgings Limited
*Note: Rounded off to the nearest whole number
Investor Presentation_ January 2024
Balance Sheet
Particulars (₹ 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
FY20
FY21
FY22
FY23
H1FY24
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
189,872 4,048 23,392 13,112 230,424 95,332
79,045 5,569 11,314 191,261 421,685 154,351 83,669 2,697 15,351 101,717 58,976 761 88,327 17,553 165,617 421,685
29
Ramkrishna Forgings Limited
*Note: Rounded off to the nearest whole number
Investor Presentation_ January 2024
Cash Flow Statement
Particulars (₹ in lakhs)
Cash Flow from Operating Activities
Profit before Tax
FY20
FY21
FY22
FY23
H1FY24
1,442
4,148
26,617
35,565
20,649
Adjustment for Non-Operating Items
17,667
18,453
23,592
26,758
16,391
Operating Profit before Working Capital Changes
19,109
22,601
50,210
62,322
37,040
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
6,678
-9,394
-41,746
22,177
-1,284
25,786
13,207
8,464
84,499
35,756
-670
-557
-4,556
-6,724
-6,401
25,116
12,650
3,908
77,776
29,355
-22,493
-22,622
-35,348
-29,727
-49,045
-2,590
16,405
27,884
-47,057
17,875
33
194
226
6,432
226
6,659
-3,556
6,659
3,102
992
3,102
4,094
-1,815
4,094
2,280
30
Ramkrishna Forgings Limited
*Note: Rounded off to the nearest whole number
Investor Presentation_ January 2024
Our Commitment
Delivering shared value to planet, people and stakeholders through our ESG Vision
ENVIRONMENTAL CONSCIOUSNESS
VALUABLE PARTNERSHIPS
REWARDING WORKPLACE
EMPOWERED COMMUNITIES
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
Develop relationships with our suppliers through assessments, collaborations, and capacity building and develop a resilient supply chain
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
Following an effective governance model and focus on business integrity to achieve business & sustainability goals
We are aligned with UNSDGs
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Our targets to achieve sustained outcomes
❖ Achieve Carbon Neutral across scope 1 & 2 by 2050
❖ Increase energy use from renewable sources by 2028
❖ Decrease in overall waste through the 3R approach
ENVIRONMENT
❖ Increase recycling of water by 2025
❖ Ensure majority of suppliers are within the same Indian state of the manufacturing plants
by 2024
❖ 55% increase in employee volunteering participation by 2050
❖ Train and employ 100 persons/youth from local villages
❖ Train all permanent employees to live the values to be set out in a Code of Conduct
❖ Raise the bar to drive business growth and deliver on ESG vision
❖ 10% increase in women’s representation in the leadership team by 2030
SOCIAL
GOVERNANCE
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Preserving and protecting the environment across our operations
Key initiatives to support decarbonization in operations
6.1 MW Commissioned Solar Plant
7.82 MW Total Projected Solar Plant
In Focus: Conducted Life Cycle Assessment (Cradle to Grave) for 3 products – Knuckles, Crown Wheel, and Front Axle Beam.
260 KLD Current ETP Capacity
30 KLD Under Progress ETP Capacity
High Impact Areas include:
Climate Change | Air Quality | Ecotoxicity
127 KLD Current STP Capacity
115 KLD Under Progress STP Capacity
13350 KL Water recycled (ETP & STP)
3890 KL Rainwater harvested
Other Initiatives:
•
•
•
Improved power factor via circuit modification and capacity enhancement
Installed air compressor with electronic regulators
Installed VFDs to improve motor performance
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Aspiring to be employer and partner of choice
Key initiatives to support decarbonization in operations
6200+ Training Manhours
69 Critical Suppliers Identified by evaluating business impact, spent, proximity & customer preference
Eye Check-Up Health camp organised for quality and forklift operators
In Focus: Integrating capacity-building workshops across all locations
•
•
Conducted train-the-trainer session on ethical and responsible ways of “Code of Conduct” in December 2023.
Learnings will be used to conduct capacity-building workshops across all business locations to enable operational excellence and the highest standard of corporate governance and ethical behaviour.
Keep Your City Clean 60 litter bins installed in Jamshedpur
Training session at Plant V in December 2023
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Operating ethically and responsibly with transparency
Key initiatives to support corporate governance practices
Formulated (/refreshed) the following policies to define guiding principles for responsible business conduct:
Employee Code of Conduct Aims to empower all employees and other stakeholders to identify and report to the Company’s Management any instances of unethical behaviour and takes a zero-tolerance stance towards any acts of omission and commission.
Whistle Blower Policy Provides all our employees, directors and third-party vendors a platform to voice concerns or grievances on unprofessional conduct without fear of reprisal
POSH Policy Establishes a strong commitment to providing a work environment free from sexual harassment and other forms of exploitation or intimidation
Business Continuity Policy Focuses on uninterrupted operations to safeguard shareholders' value, enhance governance, accomplish strategic objectives, and provide a framework to be well-prepared for adverse circumstances
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
Q3 & 9M FY24 EARNINGS CALL
SCHEDULED ON:
Thursday, January 18, 2024 AT 16:30 HOURS INDIA TIME
PRE-REGISTRATION LINK
CLICK HERE TO JOIN THE CALL
37
Ramkrishna Forgings Limited
Investor Presentation_ January 2024
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_ January 2024
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