Ramkrishna Forgings (RKFORGE) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated revenue of INR 1,053.60 crore in Q2 FY25, up 17.2% year-on-year, with strong order inflow of INR 1,522 crore for execution over four years across geographies and segments.

• EBITDA rose 16.2% year-on-year to INR 232.75 crore, with margins at 22.09%.

• Profit after tax, including exceptional items, surged 130% year-on-year to INR 189.77 crore, aided by a significant gain from the sale of Globe All India Services.

• Board approved INR 57.5 crore investment in aluminum forging for EVs and completed acquisition of Resortes Libertad, S.A. de C.V. (now Ramkrishna Forgings Mexico S.A. de C.V.).

• Declared 1st interim dividend of ₹1 per share for FY25, with record date set as November 2, 2024.

Financial highlights

• Consolidated revenue for Q2 FY25: INR 1,053.60 crore, up 17.2% year-on-year; H1 FY25 up 16.0% year-on-year to INR 2,01,311 lakhs.

• EBITDA: INR 232.75 crore, up 16.2% year-on-year; EBITDA margin at 22.09%.

• Profit after tax: INR 189.77 crore, up 130% year-on-year, including exceptional gain from subsidiary sale.

• Export revenue grew 9.4% year-on-year in H1 FY25; exports now 45% of revenue.

• Standalone Q2 FY25 net profit: ₹18,279.69 lakhs, up from ₹7,307.91 lakhs in Q1 FY25, aided by an exceptional gain.

Outlook and guidance

• Confident of achieving 15%-20% year-on-year growth, with volume growth target of 15% for FY25.

• Capacity expansion to 311,400T by Q1 FY26, with new hot, cold, and aluminum forging lines.

• Vision to achieve 15%-20% of revenue from EV/hybrid vehicles by FY27.

• Rail wheel project JV with Titagarh progressing; operations expected by Jan FY26.

• Mexico facility to start machining and warehousing in Q3 FY25, backed by long-term agreement.