Kolkata-based Ramkrishna Forgings Ltd. (RFL) is eyeing consolidated revenues of ₹6,000 crore by the fiscal year 2026 with nearly 30% contribution from the non-auto business, Managing Director Naresh Jalan told CNBC-TV18.
The non-auto business currently contributes around 22% to the company's total sales. The company is working to increase the non-auto business share given the cyclicality of the automotive business, Jalan noted.
In the railways business, the company could end this year with sales of nearly ₹150 crore on a standalone basis, almost tripling sales over the previous. The company aims to double sales over the next two years.
In light of the current order book and pipeline, Jalan is confident of achieving an annual volume growth of 15-20% over the next couple of years.
Jalan also discussed about the ACIL liquidation matter, for which the Supreme Court on November 21 directed the National Company Law Tribunal (NCLT) to decide on a successful resolution plan within three weeks.
NCLT had directed re-valuation of ACIL's assets keeping Ramkrishna Forgings' proposed resolution plan on hold despite an approval by the Committee of Creditors (CoC).
Jalan said, "We are hopeful the resolution plan will be accepted by December 20. And ACIL should be an RFL entity by January 2024," he said.
On the plan to use the funds recently raised through a qualified institutional placement (QIP), Jalan said they will be used to clear the debt. "By the financial year end, we should be looking at ₹450-500 crore of net debt in the company from where we were."
Ramkrishna shares ended around half a percent lower on December 5, at around ₹786 apiece on the NSE.
Shares of the company, which manufactures and supplies closed-die forgings of carbon and alloy steel, micro-alloy steel and stainless steel forgings, have gained over 193% so far this year and close to 250% from the 52-week low of ₹226.5 per share.
(Edited by : Shweta Mungre)
First Published: Dec 5, 2023 6:29 PM IST
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