Ramkrishna Forgings (RKFORGE) Q1 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of ₹100,502 lakhs in Q1 FY25, up 3.9% year-over-year, with adjusted EBITDA margin of 23.1% and optimism for future growth driven by robust global forging market trends and strong order inflows.

• Strategic focus on innovation, operational excellence, partnerships, and global expansion, including the acquisition of Resortes Libertad in Mexico and the merger of ACIL Limited.

• Board and Audit Committee approved unaudited financial results, re-appointed internal auditors, and noted director changes.

Financial highlights

• Q1 FY25 consolidated revenue reached ₹100,502 lakhs, up 3.9% YoY; standalone revenue at ₹86,846 lakhs, up 3.9% YoY.

• Adjusted standalone EBITDA margin at 23.1% (excluding one-off), consolidated EBITDA at ₹22,532 lakhs (22.4% margin).

• Standalone PAT at ₹7,308 lakhs; consolidated PAT at ₹8,090 lakhs.

• Export revenue grew 13.6% YoY; domestic revenue declined 3.1% YoY.

• Capacity utilization at 86% in Q1 FY25, with installed capacity increased to 229,150 MT.

Outlook and guidance

• Confident in sustaining EBITDA margins above 23% in coming quarters, with volume growth guidance of 15%-20% for FY2025 supported by strong order book visibility.

• Plans to increase total capacity to 308,400T by end of FY25, with new press lines and cold forging capabilities.

• Mexico facility to commence machining and warehousing operations from Q3 FY25, backed by a 10-year $3.5 million per annum agreement.