Ramkrishna Forgings (RKFORGE) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated revenue of INR 1,053.6 crore in Q2 FY25, up 17.2% year-on-year, despite a 4% drop in raw material prices impacting realizations.

• Secured INR 1,522 crore in new orders for execution over four years, with a significant portion from North America and across segments.

• Divested 100% stake in Globe All India Services for INR 128 crore, redeploying funds for growth in core areas.

• Board approved INR 57.5 crore investment in new aluminum forging capacity targeting the EV segment.

• Ongoing integration of recent acquisitions and capacity expansions to drive multidimensional growth across automotive, railway, farm equipment, and EV segments.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,053.6 crore (+17.2% YoY); EBITDA: INR 232.75 crore (+16.2% YoY); EBITDA margin: 22.09%.

• Profit after tax, including exceptional items, surged 130% YoY to INR 189.77 crore.

• Export revenue grew 9.4% YoY in H1 FY25; exports now 45% of revenue.

• H1 FY25 saw an increase in consolidated debt by INR 282 crore, attributed to inventory build-up and ramp-up in subsidiaries.

• Standalone and consolidated net profit in Q2 FY25 significantly boosted by exceptional gain from subsidiary sale.

Outlook and guidance

• Confident of achieving 15%-20% year-on-year growth, driven by new product introductions, capacity additions, and expansion into new segments.

• Volume growth target for FY25 remains at 15%, with expectations of further acceleration from FY26.

• Capacity expansion to 311,400T by Q1FY26, 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.