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Ramkrishna Forgings Q3 PAT grows 171% to Rs 45 cr, declares 5-for-1 stock split

18-Jan-22 14:40 Hrs IST

On a standalone basis, EBITDA soared 79.36% to Rs 140.20 crore in Q3 December 2021 from Rs 78.17 crore in Q3 December 2020. EBITDA margin improved to 23.13% in Q3 FY22 as against 19.44% in Q3 FY21. PAT margin rose to 7.45% in Q3 December 2022 as compared to 4.15% in Q3 December 2021. The company has set its target to be net debt free by FY2025.

Commenting on the Q3 results, Mahabir Prasad Jalan, the chairman of Ramkrishna Forgings, said, The company has reported a turnover of Rs 60,605.44 lakh in Q3 FY22 in comparison to Rs 40,217.10 lakh in Q3 FY21, registering an increase of 50.70% Y-o-Y and Rs 1,60,212.56 lakh in 9M FY22 in comparison to Rs 77,049.10 lakh in 9M FY21, registering an increase of 107.94% Y-o-Y. The company has achieved an export turnover of Rs 25,968.58 lakh in Q3 FY22 on comparison to Rs 15,580.09 lakh in Q3 FY21, registering a growth of 66.68% and an export turnover of Rs 76,667.48 lakh in 9M FY22 comparison to Rs 33,586.14 lakh in 9M FY24, registering a growth of 128.27%. The EBDITA (excl. other income) is also increased to Rs 14,020.84 lakh in Q3 FY22 in comparison to Rs 7,817.28 lakh in Q3 FY21 and Rs 37,470.69 lakh in 9M FY22 as compared to Rs 12,225.74 lakh in 9M FY21.

The PAT has also increased to Rs 4,512.42 lakh in Q3 FY22 from Rs 1,667.60 lakh in Q3 FY21 and to Rs 11,984.91 lakh in 9M FY22 from Rs (-) 772.79 lakh in 9M FY21. Our new fabrication facility at Jamshedpur had been approved by one of the leading European OEMs in the Mining & Earth Moving Industry and resulted in the commencement of serial production. This facility has also enabled us to make further in-roads in the railway segment which is one of the important sectors in our diversification strategy. We continue to look for new opportunities in both auto and non-auto industries along with focusing on increasing our export revenues which should result in sustainabie improvement in profitability. With strong demand, likely improvement in capacity utilization, the addition of new contracts and disciplined cash management. We target RKFL to be net debt free company in next three years with further improvement in our performance in upcoming period, Mr Jalan added.

Ramkrishna Forgings' consolidated net profit surged 206.41% to Rs 45.35 crore on a 49.26% surge in revenue from operations Rs 601.31 crore in Q3 FY22 over Q3 FY21.

The board declared its third interim dividend of Re 0.50 per equity share of face value of Rs 10 each for the year 2021-22. The board approved 28 January 2022 as the record date for the purpose of payment of interim dividend to the eligible shareholders. The dividend will be paid within 30 days from the date of declaration.

Meanwhile, the board has also approved sub-division/ split of equity shares of the company from face value of Rs 10 each to face value of Rs 2 each (i.e. in the ratio 1:5). The record date for the proposed sub-division/ split will be intimated in due course, as per the company's exchange filing. The company plans to improve the liquidity of the company's share and broad base the investor base.

Shares of Ramkrishna Forgings shed 1.07% to Rs 1,033 on BSE. Ramkrishna Forgings is one of the leading suppliers of rolled, forged and machined products.