Any current/future new fundraising through debt or equity?

As of Q1 FY'25, there is no indication of new fundraising through debt or equity. Gross and net debt increased by approximately INR 100 Crores on a consolidated basis due to investments in subsidiaries. Debt levels are expected to remain at the FY'24 levels by the end of FY'25, with no increase planned. Capital expenditure guidance remains unchanged: about INR 500 Crores for Ramkrishna Forgings standalone, INR 135 Crores for subsidiaries, and around INR 100 Crores investment in the Ramkrishna Titagarh JV project. No mention of fresh equity fundraising or debt issuance plans during the call. Th

Any current/future capex/capital investment/strategic investment?

Full-year capex for FY '25 is guided at around INR 500 Crores for Ramkrishna Forgings standalone. Additional investment in subsidiaries is expected to be about INR 135 Crores. Investment in the Ramkrishna Titagarh joint venture project is around INR 100 Crores. No changes have been made to these investment plans — the company confirms to continue with this guidance. The total project cost for the Ramkrishna Titagarh joint venture has increased from an earlier estimate of INR 1,250-1,300 Crores to around INR 1,800 Crores currently. Acquired Resortes Libertad in Mexico to establish a legal entit

Future growth expectations in sales/revenue/volumes?

Ramkrishna Forgings expects volume growth of 15% to 20% for FY '25, driven by strong order book visibility and new order wins. Revenue growth is guided to be in line with volume growth, considering raw material price pass-through. Export revenue has seen improvement due to new product mix and customer additions, with realizations expected to remain stable. Domestic revenue showed a 3% decline due to raw material price decreases and lower offtake, but is expected to stabilize. Multitech Auto is expected to grow 15% to 20% with EBITDA margin improvement of 100 to 200 basis points. The ramp-up of

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth guidance for FY '25 is 15% to 20% in volume terms. EBITDA margin expected to improve by 100 to 200 basis points at Multitech Auto subsidiary. Consolidated EBITDA margin stands around 23% and management is confident of sustaining 23%+ margins going forward. Subsidiaries, including Multitech, ACIL, and Ramkrishna Casting Solutions, are ramping up operations contributing to margin improvements. New order inflows totaling INR 1,679 Crores provide strong revenue visibility over next 3-4 years. Ramkrishna Titagarh JV project expected to start production by FY '26 end, adding

Current/ Expected Orderbook/ Pending Orders?

Current order inflow for Q1 FY '25 is approximately INR 1,679 Crores. Breakdown by region and segment: - North America: INR 526 Crores (CV: INR 201 Crores, LV: INR 109 Crores, EV: INR 16 Crores, Non-auto: INR 200 Crores) - Europe: INR 287 Crores (mostly CV, EV ~1%) - India: INR 442 Crores (CV: INR 362 Crores, Non-auto: INR 80 Crores) - Railway segment: INR 284 Crores (undercarriage and other items) - Rest of the world: INR 140 Crores (CV market) Total order book stands at over INR 1,200 Crores executable over 4 years. Expected annual executable order value: approximately INR 300+ Cro

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Ramkrishna Forgings LtdQ2 FY24Auto Components

Ramkrishna Forgings Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹572P/E: 128.9Market Cap: ₹10.4K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Ramkrishna Forgings expects volume growth of 15% to 20% for FY '25, driven by strong order book visibility and new order wins.
→Revenue growth is guided to be in line with volume growth, considering raw material price pass-through.
→Export revenue has seen improvement due to new product mix and customer additions, with realizations expected to remain stable.
→Domestic revenue showed a 3% decline due to raw material price decreases and lower offtake, but is expected to stabilize.
→Multitech Auto is expected to grow 15% to 20% with EBITDA margin improvement of 100 to 200 basis points.
→The ramp-up of subsidiaries like Ramkrishna Casting Solutions Limited (formerly JMT Auto), ACIL, and Multitech Auto is progressing, contributing to margin expansion and revenue growth.
→The Ramkrishna Titagarh joint venture project is on track for first production in FY '26, expected to add to future revenues.

Margin guidance

Category 3

→Revenue growth guidance for FY '25 is 15% to 20% in volume terms.
→EBITDA margin expected to improve by 100 to 200 basis points at Multitech Auto subsidiary.
→Consolidated EBITDA margin stands around 23% and management is confident of sustaining 23%+ margins going forward.
→Subsidiaries, including Multitech, ACIL, and Ramkrishna Casting Solutions, are ramping up operations contributing to margin improvements.
→New order inflows totaling INR 1,679 Crores provide strong revenue visibility over next 3-4 years.
→Ramkrishna Titagarh JV project expected to start production by FY '26 end, adding to future revenues.
→Net profit after tax for Q1 FY '25 was INR 73.1 Crores; growth expected with operational efficiencies and order ramp-up.
→Management optimistic about continuing operational efficiencies and cost management to drive profits higher.

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Fundraise plans

Yes

→As of Q1 FY'25, there is no indication of new fundraising through debt or equity.
→Gross and net debt increased by approximately INR 100 Crores on a consolidated basis due to investments in subsidiaries.
→Debt levels are expected to remain at the FY'24 levels by the end of FY'25, with no increase planned.
→Capital expenditure guidance remains unchanged: about INR 500 Crores for Ramkrishna Forgings standalone, INR 135 Crores for subsidiaries, and around INR 100 Crores investment in the Ramkrishna Titagarh JV project.
→No mention of fresh equity fundraising or debt issuance plans during the call.
→The company has substantial unutilized bank lines and prefers to keep these rather than holding large cash balances on its books.

Order book

Yes

→Current order inflow for Q1 FY '25 is approximately INR 1,679 Crores.
→Breakdown by region and segment:
→ - North America: INR 526 Crores (CV: INR 201 Crores, LV: INR 109 Crores, EV: INR 16 Crores, Non-auto: INR 200 Crores)
→ - Europe: INR 287 Crores (mostly CV, EV ~1%)
→ - India: INR 442 Crores (CV: INR 362 Crores, Non-auto: INR 80 Crores)
→ - Railway segment: INR 284 Crores (undercarriage and other items)
→ - Rest of the world: INR 140 Crores (CV market)
→Total order book stands at over INR 1,200 Crores executable over 4 years.
→Expected annual executable order value: approximately INR 300+ Crores starting next year.
→Orders primarily spread across automotive CV, LV, EV segments, non-auto sectors, and railways.

Capex plans

Yes

→Full-year capex for FY '25 is guided at around INR 500 Crores for Ramkrishna Forgings standalone.
→Additional investment in subsidiaries is expected to be about INR 135 Crores.
→Investment in the Ramkrishna Titagarh joint venture project is around INR 100 Crores.
→No changes have been made to these investment plans — the company confirms to continue with this guidance.
→The total project cost for the Ramkrishna Titagarh joint venture has increased from an earlier estimate of INR 1,250-1,300 Crores to around INR 1,800 Crores currently.
→Acquired Resortes Libertad in Mexico to establish a legal entity quickly for starting manufacturing operations in Mexico, indicating a strategic move for geographic expansion.
→Subsidiaries like Ramkrishna Casting Solutions (previously JMT Auto) have started operations and continue to ramp up.

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