By Ramkrishna Forgings Ltd announced a significant increase in its consolidated net profit for the third quarter, reaching Rs 86.86 crore, marking a 43% rise compared to the same period last year. The company attributed this growth to higher income levels. In the corresponding quarter of the previous fiscal year, the company had reported a net profit of Rs 61.04 crore, as stated in an exchange filing.
Financial Performance Overview
During the December quarter of the current fiscal year, the company’s total income also witnessed a notable surge, reaching Rs 1,059.32 crore compared to Rs 778.22 crore recorded in the year-ago quarter. However, expenses rose to Rs 941.84 crore from Rs 684.70 crore in the previous year.
Statement from Managing Director
Naresh Jalan, Managing Director of Ramkrishna Forgings Ltd, commented on the strong performance, highlighting a 20% year-on-year growth in revenues and a 43% increase in profitability. He emphasized the company’s achievement of a 23% EBITDA margin, attributing it to operating leverage and rigorous cost control measures. Jalan also mentioned the successful fundraise of Rs 1,000 crore through the Qualified Institutional Placement (QIP) route during the quarter.
Expansion Strategies and Acquisitions
Jalan expressed optimism regarding the recent approval by NCLT Delhi for the acquisition of ACIL Ltd, stating that it aligns with the company’s strategic objectives and positions them for robust expansion in the upcoming phase.
Sales Volume Performance
In the October-December period, Ramkrishna Forgings reported a sales volume of 28,263 tonnes, marking a substantial year-on-year increase of 35.6%. For the April-December period, the company recorded a sales volume of 76,277 metric tonnes, representing a 22.8% increase over the same period in the previous fiscal year.
Company Profile
Based in Kolkata, Ramkrishna Forgings is a prominent manufacturer of forged metal products with an annual installed capacity of 210,900 metric tonnes. The company specializes in producing and supplying forgings of carbon and alloy steel, micro alloy steel, and stainless steel to various sectors including railways, bearings, oil and gas, power, construction, and automotive industries.
