Ramkrishna Forgings eyes ₹5,000 crore in revenue by FY25
Ramkrishna Forgings MD Naresh Jalan said that the overall debt of the company has considerably gone down to ₹590 crore and the target is to become debt-free by the next two years.
Ramkrishna Forgings on January 19 said that the demand trend is intact both in the domestic and export markets and that the firm expects to clock in ₹5,000 crore in revenue by the 2024-25 fiscal.
“That (demand) is what has driven third-quarter volume growth. This is sustainable and we are going to build up from here. Also, with the kind of capacities we are building in, this is the start of the traction in the volumes,” the company’s MD Naresh Jalan said in a post-earnings chat with CNBC-TV18.
Jalan’s remark comes a day after Ramkrishna Forgings posted a 43% rise in consolidated net profit to ₹86.86 crore during the December quarter on the back of higher income. The company's total income in the third quarter of the current fiscal also rose to ₹1,059.32 crore from ₹778.22 crore in the year-ago quarter.
The firm’s revenue for the quarter under review went up 36% year-on-year to ₹1,058 crore while the margin declined to 21.3%.
“Post Q4, revenue of ₹5,000 crore for FY25 will be visible…We are done with our inorganic growth as of now and are consolidating all the inorganic growth which we have made…We are on track to grow our balance sheet and we aspire to be at ₹6,000 crore but it depends on how commodity moves on from here,” he said.
He also pointed out that the overall debt of the company has considerably gone down to ₹590 crore and the target is to become debt-free by the next two years.
For the October-December period, the forged metal products manufacturer reported a sales volume of 28,263 tonnes, a year-on-year increase of 35.6%. In the April-December period, sales volume was 76,277 metric tonnes (MT), representing a year-on-year increase of 22.8% over the same period in the previous fiscal.
The Kolkata-based company, which has an annual installed capacity of 2,10,900 MT, manufactures and supplies forgings of carbon and alloy steel, micro-alloy steel and stainless steel to sectors like railways, bearings, oil and gas, power and construction, and automotive among others.
Ramkrishna Forgings shares ended 2.61% higher at ₹769.55 on BSE.
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