homebusiness NewsRamkrishna Forgings expects electric vehicles business to account for 3 4% of total sales in FY23
Ramkrishna Forgings expects electric vehicles business to account for 3-4% of total sales in FY23
To understand the road ahead for Ramkrishna Forgings' electric vehicle business and how the company plans on using the proceeds from the fund raise, CNBC-TV18 spoke to Lalit Khetan, ED & CFO of Ramkrishna Forgings
Ramkrishna Forgings shares were in focus on Monday as the firm has approved a fund raise of Rs 94.3 crore through a preferential issue of 46 lakh warrants convertible into equivalent equity shares of Rs 2 each at a price of Rs 205 per warrant to promoters/non-promoters.
“Majority of this (Rs 94 crore fundraise) will be used for the repayment of debt. In this financial year, we will get around Rs 23 crore, rest will come in next financial year by warrant and entire money will come in an 18-month period,” Ramkrishna Forgings ED and CFO told CNBC-TV18.
Khetan said the firm will stick to its guidance of reduction of debt by around Rs 200 crore by the financial year 2022-2023. As of today, the debt is in the range of Rs 1,250-1,300 crore, he added.
On Ramkrishna Forgings’ foray into the electric vehicles space, he said, “It is an evolving space and everything depends on the growth of the EV market. A lot of our original equipment manufacturers (OEMs) have EV models and we are producing EV products for them. The target for the current year is 3 to 4 percent of the total sales of the company. For FY24 we are looking at 6-7 percent.”
The company has also won the order for supplying metal bars and has a business potential of almost Rs 80 crore per year. Khetan said, “This will be to our European OEM and this will start from the next financial year.”
“Next financial year, we may have Rs 30 crore to start with, but it has the potential to go to Rs 80 crore so it will take a year or two to go to Rs 80 crore,” he said.
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Also Read: Expect good buoyancy in automobile sector, says Vikas Khemani of Carnelian Capital Advisors
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