Ramkrishna Forgings Limited – Investor Presentation Summary
Key Operational Highlights
- Total production volume of 66,894 MT in Q1 FY27 with overall capacity utilization of 68%.
- Ring Rolling capacity utilization at 127% (production 7,621 MT against installed capacity of 24,000 MT).
- Forgings capacity utilization at 64% (production 11,227 MT against installed capacity of 70,350 MT).
- Press capacity utilization at 60% (production 35,689 MT against installed capacity of 239,050 MT).
- Casting capacity utilization at 79% (production 12,357 MT against installed capacity of 62,400 MT).
- Key drivers: Firm domestic demand, healthy export volume growth, improved operating leverage, better business mix.
Segment-wise Performance
- Domestic Auto: 48.8% of total revenue (increased from 47.0% in FY26)
- Railways: 6.0% of total revenue (decreased from 7.5% in FY26)
- Mining, Earth Moving & Farm Equipment: 5.7% of total revenue (decreased from 5.9% in FY26)
- Miscellaneous (Industrial Components, Steel, Cement & Power): 7.2% of total revenue (decreased from 8.0% in FY26)
- Total Domestic: 67.7% of total revenue
- Exports - Auto: 28.3% of total revenue
- Exports - Others: 4.0% of total revenue (including Oil & Gas at 0.3%)
- Total Export: 32.3% of total revenue
Financial Highlights
Revenue: ₹1,217 crore (consolidated)
EBITDA: Not explicitly stated in presentation
PAT: ₹47 crore (consolidated)
EPS: Not specified
Margins: Gross Profit Margin at 54.07% (standalone), EBITDA Margin at 17.96% (standalone), EBIT Margin at 10.11% (standalone), PBT Margin at 5.42% (standalone before exceptional items)
YoY comparison: Revenue increased 19.8% YoY, PBT improved to ₹65 crore from ₹24 crore in Q1 FY26
QoQ comparison: Revenue increased 1.9% from Q4 FY26, PBT improved to ₹65 crore from ₹64 crore in Q4 FY26
Drivers of financial performance: Higher revenue growth, improved operating leverage, better business mix
Comparison to market estimates: Not specified
Key Risks: Not explicitly disclosed
Geographical Revenue Split
Domestic vs Export Revenue:
Domestic: ₹735.07 crore, 66.7% of total (standalone)
Export: ₹353.87 crore, 32.1% of total (standalone)
Other Income & Export Incentive: ₹12.74 crore, 1.2% of total (standalone)
Regional Breakdown:
North America: ₹222.25 crore, 58.0% of exports
Europe: ₹128.41 crore, 41.3% of exports
Asia & others: ₹3.21 crore, 0.7% of exports
Balance Sheet Snapshot
Net Debt/Equity: Not specified
Reserves: Not specified
Current Assets: ₹2,449 crore (FY26)
Current Liabilities: ₹2,132 crore (FY26)
Working Capital/Leverage Metrics: Not specified
Financial Health Insights: Strong cash flow generation with Net Cash from Operating Activities of ₹840 crore in FY26
Capex & Cash Flow Health
Capital Expenditure: Not specified for Q1 FY27, but capacity expansions noted
Free Cash Flow: Not specified
Operating Cash Flow: Net Cash from Operating Activities was ₹840 crore in FY26
Net Debt Movement: Not disclosed
Investment Rationale: Focus on capacity expansion, technology upgrades, diversification into new verticals
Strategic & R&D Initiatives
Investments in Innovation: Ramp-up of casting operations, commissioning of new capacities, expansion of value-added offerings, building portfolio in non-ferrous forgings for Aerospace and Semi-Conductor Industry
Expected impact on growth: Broadening growth platform and enhancing ability to serve customers across broader range of applications
Strategic Rationale: Diversifying business model, expanding into high-growth markets
Industry Trends & Business Environment
Macro/Industry Trends: Continued improvement in business momentum across both domestic and international markets, firm demand in domestic market
Impact on Company: Healthy volume growth in exports during the quarter, contributing to revenue increase
Management Commentary & Growth Outlook
Strategic Outlook: "We remain optimistic about our growth prospects. A combination of levers such as sustained demand in domestic market, revival in export markets, expanded capacity and product portfolio, scaling of newer verticals such as casting and aluminum forging as well as traction from new end-user industries served position us well to deliver sustainable growth"
FY Guidance: Not explicitly provided
Market Share Targets: Not specified
Risks and Opportunities: Not explicitly highlighted
ESG Updates
GHG Emissions & Energy Management: Target to achieve 100% Renewable Energy by 2033, 39% increase in RE Consumption QoQ, 65% increase in RE Consumption YoY
Water and Waste Management: Target to achieve Zero Liquid Discharge across all plants by 2030, 97% increase in rainwater harvesting QoQ, 8% increase in total waste recycling QoQ
Employee Wellbeing: 99.9% permanent employees trained on ESG, 99.8% permanent employees trained on Human Rights
Community Support: Multiple community upliftment programs on infrastructure, healthcare and waste management