Shares of Forged products manufacturer Ramkrishna Forgings Ltd. gained on Monday after the company announced bagging a $13.65 million per year supply order that will help to bolster its presence in the North American market.
The contract pertains to the supply of rear axle and transmission components and is done on an annual basis. Ramkrishna Forgings will supply the rear axle and transmission components to Class 5, 6 and 7 vehicles.
While the development is a substantial step towards bolstering its growth portfolio within the North American region, the order also provides a pivotal opportunity to strengthen its position within the Light Vehicle sector, Ramkrishna Forgings said in a statement.
It further added that the continuous growth trajectory showcased by this substantial business contract underscores the company’s dedication to meeting and exceeding the demands of the North American market.
The management of the company in a recent concall had told analysts that the market was extremely robust within India as well as in North America.
It stated that strong demand resulted in substantial growth in both revenue and profit in the June quarter, where revenue grew by 28 percent year-on-year, while net profit saw a 63 percent growth.
The company in the June quarter had bagged a major order of €4.5 million from a prominent European railway passenger coach manufacturer.
The company this month had announced forming a joint venture entity with Titagarh Rail Systems Ltd. for the execution of a project related to the manufacturing and supply of forged wheels under a long-term agreement under Atmanirbhar Bharat initiative.
Ramkrishna Forgings Limited is one of the leading suppliers of rolled, forged, and machined products.
Shares of Ramkrishna Forgings are trading 1.3 percent higher at Rs 188.90. The stock has more than doubled on a year-to-date basis, gaining 122 percent.
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