Ramkrishna Forgings Ltd (NSE: RKFORGE) announced unaudited standalone financial results for Q3 and 9M FY25 ended December 31, 2024. Revenues rose 5.5% YoY in Q3 to ₹953 crore, with PAT up 21.0% YoY to ₹100 crore.
Lead Summary
Standalone Q3 FY25 revenue increased 5.5% YoY to ₹953 crore from ₹903 crore. EBITDA grew 3.8% YoY to ₹215 crore, with margins at 22.6%. 9M FY25 revenue rose 6.5% YoY to ₹2,774 crore, PAT up 48.9% to ₹355 crore.
Latest Quarterly Results and Highlights
For the quarter ended December 31, 2024 (Q3FY25), the company reported standalone revenue of ₹953 crore, a 5.5% increase compared to ₹903 crore in Q3FY24. Standalone EBITDA rose 3.8% year-over-year to ₹215 crore, maintaining a margin of 22.6%. Profit After Tax (PAT) for the quarter grew 21.0% to ₹100 crore. Domestic revenue for the quarter reached ₹570.84 crore, up 2.9%, while export revenue grew 9.8% to ₹373.88 crore.
9M FY25 Performance
For the nine-month period ended December 31, 2024 (9MFY25), revenue totaled ₹2,774 crore, representing a 6.5% year-over-year growth. PAT for 9MFY25 rose 48.9% to ₹355 crore, a figure that includes an exceptional gain of ₹88 crore from the sale of Globe All India Services Limited. Domestic sales volume increased by 7.02% to 30,247 T, and export volume increased by 12.2% to 14,951 T in Q3FY25.
Company Profile and Business Model
Incorporated in 1981 and headquartered in Kolkata, the company operates as an integrated forging, casting, and fabrication facility. It maintains 22 manufacturing plants and exports to 23 countries. As of December 31, 2024, the installed forging capacity was 272,400 MTPA and casting capacity was 33,600 MTPA. The business model involves supplying forged and machined components to eight industries, including automotive, railways, farm equipment, and energy.
Operational Updates
CRISIL Ratings reaffirmed ratings for bank facilities. Domestic revenue grew 2.9% YoY to ₹570.84 crore. Exports revenue up 9.8% YoY to ₹373.88 crore.
Management Commentary and Future Outlook
Management indicated that growth was driven by a higher share of business from existing customers and new components. This performance occurred despite a 4% de-growth in domestic commercial vehicle volumes. The company secured new orders worth ₹697 crore for the non-auto segment, specifically railways, to be executed over four years.
The future outlook is based on entry into two-wheeler and passenger vehicle segments. Plans include capacity additions in cold forging and aluminum forging to address electric vehicle (EV) and hybrid market opportunities. The company is also streamlining subsidiaries to scale its casting offerings.
Guidance and Outlook
Outlook positive from new products, customers, verticals, and capacities. Entry planned into two-wheelers and passenger vehicles. Capacity additions in cold forging, aluminum forging for EV/hybrid opportunities. Streamlining subsidiaries to scale castings offerings.
Broader Industry Context
Company positioned as supplier to OEMs like TATA Motors, Ashok Leyland, VE Commercial, Daimler in India, and Volvo, Mack Trucks, Iveco abroad. Supplies to Tier 1 axle makers like Dana, Meritor. Diversified growth strategy across segments.