Ramkrishna Forgings, a leading manufacturer and supplier of closed die forgings of carbon and alloy steel, micro-alloy steel and stainless-steel forgings has reported a profit of Rs 61 crore for FY2023 compared to Rs 45 crore a year ago.
The revenue for the quarter came at 777.48 crore as against Rs 601 crore a year ago. The company has benefited from new orders and improvement in capacity utlisation. Its overall capacity utilisation was 86 percent for Q3FY23, 82 percent in Q2FY23 and 73 percent in Q3FY22.
During the quarter, Ramkrishna Forgings also acquired 51 percent in Tsuyo Manufacturing, a start-up company engaged in powertrain solutions for electric vehicles. Furthermore, it also plans to acquire JMT Auto, one of the largest auto component manufacturers in the Eastern region.
Naresh Jalan, MD, Ramkrishna Forgings said, “Our diverse and robust business model has led to a sustained growth momentum, primarily driven by our strategic decision to enhance product offering coupled with high customer demand. These efforts have enabled us to achieve a 24% increase in operating revenues year-over-year. Our global geographical outreach helped us to secure new orders and further strengthen the order book. In the first nine months of FY23, we won contracts worth Rs 77,470 lakhs from 8 contracts spanning various geographies including North America and Europe.”
“As of December 31, 2022, we have reduced our gross debt by 23% and it currently stands at Rs 1,28,689 lakh. We will continue to focus on reducing debt with the goal to become net debt-free by FY25.”
The company says the commercial vehicle segment has seen steady growth following the festive season, due to high utilisation of fleets resulting from increased economic and infrastructure activity. It expects the momentum to continue.
“With the acquisition of Tsuyo and JMT Auto, we plan to expand and diversify our company, resulting in increased scale and market reach. Our efforts are focused on customer-centric approach to offer advanced and value-added products across the globe and maintain our strong market share,” concluded Jalan.