Ramkrishna Forgings Ltd shares gained 2 percent in trade on Wednesday after the company said that it has bagged an order worth 8.25 million Euros (nearly Rs 74 crore) from a prominent European OEM (original equipment maker) and tier-1 supplier.
As a part of the contract, the company will be supplying front and rear axle components for the next five years, Ramkrishna Forgings said in a filing to the stock exchanges.
This contract signifies a commitment of 1.65 million Euros per year, a testament to the partnership between the company and these industry leaders, Ramkrishna Forgings said in its stock exchange filing.
"This contract represents a significant step in our journey to expand and diversify our operations in the South American market, " Lalit Kumar Khetan, Whole Time Director and CFO of Ramkrishna Forgings said.
Ramkrishna Forgings is one of the leading suppliers of rolled, forged, and machined products.
Earlier this month, Ramkrishna Forgings announced receiving a business contract valued at 17.2 million euros (about Rs 156 crore) from a Eurasian customer in the farm equipment industry.
The contract extends over four years, translating into an annual contract valued at around 4.31 million euros.
Before that, the company received another contract worth approximately Rs 145 crore for differential components from a European original equipment maker.
In the first quarter of the current fiscal, Ramkrishna Forgings posted a robust set of earnings, with its operating profit increasing more than 28 percent on a year-on-year basis and a revenue growth of nearly 30 percent.
Shares of Ramkrishna Forgings were trading 1.05 percent higher at Rs 660.75 apiece on the BSE at 10:41 AM.
First Published: Aug 30, 2023 1:17 PM IST
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